Does my home insurance cover collectibles?
A standard primary residence home insurance policy will generally provide personal property coverage in an amount equal to 25-50% of your dwelling coverage. So if you’re insuring a $200,000 home, you typically have anywhere from $50,000 – $100,000 in coverage for your personal belongings. This coverage is intended to get you back on your feet in the event of a significant claim. It typically covers things like furniture, beds, clothing, pots and pans etc.
But what if you have sports memorabilia, jewelry, watches, art or other collectibles – will your policy cover these items?
The answer is generally yes – but not to the extent that you’d expect.
Homeowners insurance is intended to get you back on your feet after a claim – it’s not intended to cover high ticket items. In fact, most primary residence home insurance policies have special sub-limits when it comes to these types of items. And the coverage is extraordinarily limited. The coverage typically maxes out coverage to no more than $1500 or so per item and no more $1500 or so in total coverage. So it could be one item covered for $1500 or 5 items covered at $500 each….or any variation thereof. But my point here is this – it’s not a lot of coverage.
So what should you do if you have high ticket items?
You’ll either need to schedule these items on your home insurance policy or purchase a separate policy that is meant to cover high ticket items. Depending on the items you’re looking to insure, you may need to have them appraised or provide receipts.
If you purchase a separate policy – it typically comes with no deductible or a very low deductible. It also will provide worldwide coverage and will typically provide more extensive coverage than a home insurance policy. The premium is typically 1-2% of the total value of the items you’re looking to insure. This depends, of course, on the item, its use and its location. So if you’re looking to insure $20,000 of collectibles – you’d be looking at roughly $200-$400 per year in additional premium.
If you have high ticket items in your house, don’t just assume they’re covered – call your insurance company or your agent to inquire.
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