With the spirit of love in the air as Valentine’s Day approaches, it is only appropriate for us to bring back our classic Valentines’ Day episode of Ask Sherri. If you plan on proposing this Valentine’s Day or just getting your loved one an expensive gift, we highly recommend that you check out this episode. Sherri will show you why you may want to consider a Floater Policy or adding extra coverage to your Homeowners or Renters Policy for these special gifts. And…. why you may want to stay away from putting your ring in the cake…
The shopping season is in winding down right about now, and your loved ones have received all their gifts. Whether it is a new gaming system, new shoes, a big screen TV, a new iPhone or laptop, special jewelry or a trip for 2 to a ski resort or sunny spa for a week, you may want to be sure that these gifts are protected by insurance if something unfortunate were to happen to them.
Does your Homeowners Policy cover any or all of these items while in your home BEFORE you give them away as gifts? Do you have a Floater Policy (aka Inland Marine Policy) to add that special valuable jewelry item you received from your loved one? Did you purchase Travel Insurance for that exciting trip?
An Inland Marine policy or Floaters policy can cover those valuable gifts such as computers, fine arts, furs, golf equipment, jewelry, music instruments, and even camera equipment for All Risk, World Wide coverage with no deductible when scheduled on this type of policy.
Your Homeowners insurance may provide some coverage as well; however, every policy offers different features. A simple call to your agent can give you the detailed information you need to be sure.
Travel Insurance can protect you and your passenger should you need to cancel the trip due to a sudden illness that prevents you from going. Or when on the trip, is an accident, sickness or injury covered by your current health insurance if you leave your home state? What if you require to be evacuated or airlifted for care – would your health insurance cover that expense? And if your trip was cut short due to a sickness or injury, would you get reimbursed to travel again at a later time? You can have all of these situations covered with the right insurance.
Receiving electronicsfor the holiday is an awesome gift as well; however, will your homeowners or renters policy automatically cover it? Every insurance company has their own interpretation of coverage and a call to your agent is strongly suggested to be sure you understand any limitation in your policy or instructions on what to do to protect your precious gift. Sometimes purchasing the protection right from the electronic vender is the simplest and most economical way to get the best protection.
We hope you received all the gifts on your wish list this Holiday season! Keep Insurance on your list as well. Do not hesitate to contact us if you have any questions at 718-386-5050 or firstname.lastname@example.org.
No. While some Homeowner’s policies cover jewelry; up to a specific limit, engagement rings should be scheduled on a separate Inland Marine Policy or added as a Floater to your existing Homeowner’s Policy. Otherwise it is unlikely that there will be coverage for such a “big ticket” item. For more information on this, see our blog “Floater Policy: Insuring Your Valuables”.
Planning to propose this Valentine’s Day? Sherri makes sure that you know how to properly insure that engagement ring! Click the link and view our latest video. Learn something about a Floater policy and maybe have some laughs along the way. Enjoy!
Q Dear Sherri: I am getting ready to pop the question and have already purchased an engagement ring. Does my Homeowner’s policy cover the ring?
A How exciting and romantic. Let me start with a BIG congratulations! Most Homeowner’s policies cover jewelry on-premises for limited perils, which means causes of loss. However, there is a limit on the overall amount and a limit for each individual piece of jewelry. I’m sure (I hope, for your sake) that your engagement ring is way over that individual limit.
The best way to properly insure an engagement ring is to purchase anInland Marine Policy or add a“Floater” to your existing Homeowner’s policy. To do this, you will need an appraisal giving a detailed description of the ring and its value. Since yours is a very recent purchase, you can use your receipt as long as the receipt provides a detailed description of the ring and the correct replacement cost value.
Some of the nice features of an Inland Marine Policy are that it is “Special Risk” coverage, meaning that if the peril or cause of loss is not specifically excluded by the policy; it’s covered! Also, you will have world-wide coverage, which may be important for that special honeymoon (don’t go cheap on us!) and usually a deductible is not applied if there is a loss.
Last month, we wrote a blog discussing the proper way toinsure an engagement ringor any other valuable item you were fortunate enough to receive over the holidays. The response was so overwhelming that now that Valentine’s Day is coming up we want to continue the discussion of insuring valuables. For those of you who have already had these items insured for some time now, you still need to keep the values up-to-date and this blog is to help you do that.
We understand that everyone’s definition of “valuables” is different so we thought it prudent to list a few:
bracelets and other trinkets
and collectibles of all kinds may also qualify for Floater coverage. Even valuable pieces of art, camera equipment, stamp and/or coin collections can be insured. This brings us to the issue of establishing the “value” of what we already have insured.
For instance, many of us have a Personal Articles Floater, Inland Marine or Scheduled Items Policy already in place. Some of these policies have been in place for so long that we just pay the premium every year and don’t give a moment’s thought as to what they actually cover. Having said that, any given item may have been adequately insured when it was first put on the policy, but how adequately is it insured today? For example, what about the fluctuation in gold prices? When I received my first charm bracelet, gold was selling for $30 an ounce. At its height it was almost $1,000 an ounce. I wouldn’t still want that charm bracelet to be insured at $30 an ounce! Many times jewelry appreciates in value. The same may be true of fine art, stamps or coins.
January is a time of New Year’s Resolutions, personal reassessments, and introspections. So why not take this as an opportunity to also reassess not only the insurance coverages you have in place, but the values of the items specifically covered under those policies? Being “fully covered” is a relative term and one that scares those of us who deal with losses every day, because there is really no way to be fully covered for every eventuality. However, you can improve the coverage if you review your policy on an annual basis. For example, what items are covered on these policies? How are they covered, individually or as a group? Is the coverage subject to specific exclusions? If you travel, is the coverage worldwide? Have any of the items appreciated in value, depreciated in value? What would it cost if you had to replace these valuables in today’s market? These are just a few of the many questions we answer for our clients every day. So, why not take advantage of your broker’s knowledge and check with them regarding the insurance you have in place and the values stated. My guess is that you will be glad you did!
Karen Skoler, CPCU
Do you have an insurance question? If so, e-mail it here and our insurance professional Sherri will give you the scoop on all you need to know. Your question might also appear in our Ask Sherri video series!
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