PERSONAL ITEMS ARE OFTEN NOT INSURED PROPERLY – ARE YOURS?
Many people don’t think that they need additional insurance on specific items if they have homeowners or renters insurance. Under most homeowners insurance, there is very limited coverage for ATVs, boats, antiques, coins, art and guns to name a few.
Here is a question for you. How many of us really believe that our house of apartment is going to burn down or be blown away in a storm? If we are truthful, the answer is very few of us.
There are many homes that have antiques that have been passed down through three, four and even five generations. The family thinks it came from great, great aunt Mary but that is all they know. Because it is old and looks like a piece of junk, they presume that it has no real value. The truth of the story is that it is an item that is 120 years old and even in its present condition is worth $13,000.00. Here is the problem. When a loss occurs and this item is completely destroyed, it is very difficult to verify that they owned the authentic item, let alone establishing the true value. Getting affidavits from friends and relatives stating that they have seen the item in their house is not that difficult. But the hard part is yet to come. How does the insurance company know that it indeed was an antique worth $13,000.00? It could have been a reproduction that was made ten years ago and is only worth $2,000.00. That is a large differential to be left to chance.
The way to avoid this problem is to add the antique on to your existing policy with an antique rider. In order to do this, the piece will need to be appraised by someone recognized as true antique appraiser. This may cost $150.00 or more, but you now have established a value that is hard to dispute. By adding the antique onto your policy you also have broader coverage for the piece and you have a definitive amount of coverage in place for the piece.
What about artwork hanging on your wall passed down through generations? It could be a piece from pre-civil war days and worth a great deal of money. Again, we asked the question how do establish value after a loss occurs.
Many, many Americans have guns in their home that are quite valuable. Some may be newer that your father gave you thirty years ago. Or it may be one like my grandmother had in her house. It was a single shoot 22 with an eight sided barrel. I don’t know who ended up with the rifle but they definitely need to insure it as a scheduled item on their homeowners policy.
The point of this story is that you need to establish value before a loss occurs and then make sure that the item is properly insured. In all these cases, the same procedure applies:
1,) Take photos or video to prove the item existed
2.) Get a written appraisal from a respected industry expert.
3.) Add the item to your list of scheduled property on your insurance policy.
As always, plan for the worst and live for the best. For more information contact us at.
Howard Webb Insurance and Real Estate Inc.
765-644-8847
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