Are valuable items fully covered?

Standard policies have limits on valuable items like jewelry. Additional coverage through scheduled personal property endorsements may be needed.

In most standard insurance policies for condos and townhomes, there are limits on how much they will pay out for specific categories of valuable items such as jewelry, artwork, electronics, or collectibles. These limits mean that if you have high-value items and rely solely on your base insurance policy, you may find that in the event of theft, loss, or damage, the reimbursement might fall well short of the actual value of the items. To ensure these items are fully protected, you'll likely need to purchase additional coverage in the form of a scheduled personal property endorsement. This allows you to list specific valuable items individually on your insurance policy, usually requiring an appraisal or receipt for each item, which then provides tailored coverage up to the full value of the items specified.

Imagine you inherited a diamond necklace from your grandmother, which is valued at $10,000. Your standard condo insurance policy, however, has a jewelry coverage limit of $1,500. In the event the necklace is stolen, the policy would only cover up to $1,500, leaving you significantly out of pocket. To avoid this, you could obtain a scheduled personal property endorsement that covers the necklace for its full $10,000 value, offering peace of mind should anything happen to it.

It's a smart move to take an inventory of your valuable items such as jewelry, watches, and electronics. Once you have a list, check with your insurance provider about the coverage limits on these items under your current policy. If their value exceeds these limits, consider getting a scheduled personal property endorsement. Keep appraisals or receipts handy as you'll likely need them to justify the coverage amounts. By doing this, you can ensure you're adequately protected without any unpleasant surprises.