You may receive some lovely gifts this holiday season. How do you protect against loss from theft, damage, or destruction? Many items may be covered under your homeowners’ or renters’ insurance. Things like:
- Children’s toys
- Home Decor
- Sporting goods
- Wine and spirits
What If You Have Received a Pair Of Diamond Earrings?
Although your homeowners’ insurance policy may provide some coverage for expensive items like jewelry, antiques, and artwork, most policies will only cover these up to an assigned dollar limit. And usually, that limit is pretty low. There are also restrictions as to what you can claim.
An Insurance Rider Covers High-Value Items
An insurance rider, sometimes called an endorsement or a floater is an optional add-on to your insurance policy. It covers the items you own that are worth more than the per-item limit of your homeowners’ or renters’ insurance policy.
- Wedding and Engagement Rings
- Fine Art
- Coin Collections
- Stamp Collection
- Expensive Bicycles
- Musical Instruments
This rider protects these items from perils not named in your standard policy. For example, if you lose an item, it’s covered under an insurance rider. Best of all, you typically don’t pay a deductible.
How To Add a Rider to Your Insurance Policy
The first step to adding a rider to your existing homeowners’ or renters’ policy is to contact your insurance agent. They will most likely ask for a professional appraisal and photos of the pieces before you can buy an insurance rider. This is because the amount your valuables are insured for depends on their value at appraisal rather than what you paid for it at retail price.
What Is an Appraisal?
An appraisal document states the item’s value and a detailed description of the piece. For example, an appraisal of a diamond will include a description of the stone’s clarity and cut.
You give your insurer a copy of the appraisal document when you add the rider to your policy. Since the value of your items may change over time, you should have them appraised every two to three years to account for market fluctuations. Your insurance agent can recommend an excellent appraiser if you don’t know where to find one.