Whether you have been a homeowner for 30 years or you just purchased your first home, homeowner’s insurance is a must for the safety of you and your family. You cannot predict the future of what kind of perils or unforeseen circumstances lie ahead. It’s extremely important to be sure that personal belongings are properly insured if an accident were to happen. Here are some helpful tips on itemizing your coverage so you are getting the most out of your homeowner’s insurance policy.
What Does Itemizing Your Coverage Mean?
Itemizing your coverage is when your regular homeowner’s insurance does not cover the full cost of a specific item, so you specify your coverage for certain items. Your regular homeowner’s policy may not cover the full value of your jewelry, so you can customize your coverage by allowing for a specific insurance endorsement. An insurance endorsement is an addition to a common insurance policy that alters the coverage for a specific occurrence or item.
Say your homeowner’s insurance only covers up to $3,000 worth of jewelry, but you own $7,000 worth of jewelry. By itemizing your coverage, you can allow for an addition to your homeowner’s insurance policy that will cover the remaining $4,000, so your jewelry is fully backed by insurance.
How Much Are Your Assets Worth?
To know if you should add any endorsements to your homeowner’s insurance policy, you must know what valuables you own and how much they are worth. Valuables can include expensive jewelry, fine art, or any item that your standard insurance policy may not cover.
- Make a Home Inventory List: This can be time consuming, but it is best to make a home inventory list of all your items that are worth $500 or more.
- Know the Value: Make a note of how much you paid and what the current value is for each item. A rough estimate is all you need.
- Keep All Receipts: It is important to keep track of past purchases because the insurance agencies need proof of purchase to help customize your plan for you.
Find the Right Homeowner’s Insurance Policy for You
Many people are unaware of what their current homeowner’s insurance policy covers. It’s important to contact your insurance agent to better understand what is covered within your current policy, and what endorsements you may need to add to the policy to give yourself the best coverage as possible. Communicate with your agent every year to go over the details of your policy to account for changes in your assets and income.
When disaster strikes, you want to be confident that all possessions are protected. Accidents and theft can happen; therefore, it is important to get the proper insurance so the costs after this disaster are minimal. If you have any questions about homeowner’s insurance or if you are unsure if adding an insurance endorsement is the right choice for you, contact us at TJ Woods Insurance.
