Is My Diamond Necklace Covered? Luxury Items and What Content Is Covered

If you’re wondering what content is covered on your home insurance policy, you may be in for some surprises. When it comes to your personal belongs you may be wondering just what content is covered.

Typically, what content is covered as far as your everyday personal property is simple, but what content is covered when it comes to luxury items? Do you have a unique collection or a piece of fine art? How about a diamond necklace? In that case, you may need special coverage. 

Here we will talk about what content is covered and what isn’t covered in a typical homeowner’s policy. If you are still in doubt, speak to your insurance company or agent.

What content is covered on my home insurance?

There are two main types of coverage on your home insurance. First, coverage for your dwelling is coverage for the house itself. It is for the structure. Your contents sare known as your personal property. That is what we will focus on here.

Generally, what content is covered on your home insurance can be explained using a little imagination. Let’s say you picked your home up by the roof and turned it upside down. All the items that would fall out of your home are known as personal property. Contents that remain in the house when you turn it upside down, such as built-in cabinets, carpets, molding, etc., are part of your dwelling coverage.

What content is covered when it comes to my valuables

Now, when it comes to what content is covered for highly valuable or unique items, there may be some limitations and exclusions. Home insurance policies often exclude coverage for valuable personal property, or they may limit the coverage on the items. For example, a homeowner policy may limit coverage for jewelry to $500.

Here is a roundup of commonly excluded or limited personal property items, so you know what content is covered when it comes to highly valuable property.

Firearms:

Firearms and ammunition are commonly subject to a sublimit on a home insurance policy. So as far as what content is covered when it comes to weapons, the answer may be not enough. Some policies carry a sublimit on firearms of $1,000. If you have valuable firearms, contact your insurance professional about getting them added to your insurance policy. You may be asked to provide details on each firearm including serial number and manufacture.

Fine art:

Fine art is another type of property that may have you wondering what content is covered when it comes to art? Fine art or valuable art may be excluded from typical home insurance or renter’s policy. If you have fine art, it is best to have it added to your policy through an endorsement. Your insurance company may ask for an appraisal and photos of the art. 

Antiques:

If you’re an antique collector or inherited a few antique pieces, you may want to ask yourself what content is covered when it comes to my antiques. Antiques – even furniture in use – may be excluded from your typical home insurance policy.

Antiques are subject to special valuation because the value is difficult to calculate. Unlike a typical piece of furniture which has a measurable replacement cost, antiques require expert appraisals and are valued based on market demand or collectability.

If you have antiques, talk to your insurance professional about making sure they are correctly insured. You may have to submit an estimate to your insurance company for valuation.

Jewelry:

When it comes to jewelry and what content is covered, the answer is the most valuable pieces may be excluded for coverage or subject to a small limit such as $1,000. Fine jewelry should be explicitly covered either by endorsement to your homeowner’s insurance policy or by a separate policy. 

Talk to your insurance agent to make sure your jewelry is adequately insured. You may have to show an appraisal to substantiate the value of the jewelry. Not all jewelry needs to be insured separately.  Costume or casual jewelry is covered under your personal property. But jewelry with precious metals and stones may require separate coverage.

Furs:

Furs are notas fashionable as they once were, but there may be some concern about what content is covered when it comes to furs. Fur garments are typically excluded when it comes to home insurance. Fur rugs or other fur furnishings are also excluded. Such luxury items must be insured under a separate policy or a special rider for highly valuable property that gets attached to your home insurance.

Cameras / specialized electronic equipment:

You may also want to ask yourself what content is covered if you own special electronic equipment such as cameras or audio/video recording equipment. This is becoming more common as people conduct businesses from home via freelance work. If you have special equipment you use for work or a hobby, it may not be covered under your standard home insurance policy. Be sure to speak to an insurance professional about what content is included when it comes to your equipment.

How do I know what content is covered by my home insurance?

When in doubt about what content is covered under your home insurance policy, its best to refer to the policy directly. If you can’t make sense of it, contact your insurance professional for questions. 

ACV versus RCV: What content is covered?

There are two main types of valuation used when determining what content is covered on your insurance.

Actual Cash Value (ACV):

Actual cash value is the cost to replace an item with similar kind and quality, minus the depreciation or age of the item. So, for example, it may cost $2,500 to replace your sofa with a similar one today. But your couch is ten years old. So, the actual cash value of your sofa is $2,500 minus ten years of depreciation, so you may be looking at $500.

Replacement Cost Value (RCV):

Replacement Cost Valuation is how much it will cost to replace an item notwithstanding the depreciation. Most home insurance policies extend replacement cost valuation on your personal property.

Don’t wonder what content is covered

If you have questions about what content is covered on your home insurance, its best to speak to a professional. If you have a claim and are wondering what content is covered, contact Bulldog Adjusters for help.