Most people love their home, but what makes it far more valuable than the walls and roof are the things that fill it. Your personal property is special to you, things that you have gathered over many years and selected to suit your personal taste. Making certain you have enough coverage for these things should be a top priority when it comes to homeowner’s insurance. Here’s how to be sure your personal property is protected.
How Personal Property Coverage Is Determined
Most insurance companies use a percentage of the value of the home to determine the amount of personal property coverage. When you see that number, be sure to question it if you believe it’s too low. In some cases you may need to provide some evidence for the extra coverage, but it’s worth the hassle. If you were to lose everything in a fire, that is the maximum amount you would receive to replace everything. And that really is everything, from your toothbrush to your dining room table. So be sure to discuss that number thoroughly with your agent!
Special Items Of Value
Whenever there is something of particular value in a home, such as artwork, jewelry, or rugs, you may need to take out a special additional coverage known as a floater. A floater adds a specific coverage to the policy that is intended only for that particular item. It usually requires an appraisal of the item as proof of value and comes with an extra premium amount. However, if your diamond engagement ring is stolen from your home you will certainly be glad you covered it properly, because most personal property coverage has a per item limit on jewelry that probably won’t cover it.
When You Aren’t At Home
Many people don’t know this, but your homeowner’s insurance will actually cover your personal property anywhere you go. That means that if your things are stolen from your car, or even from your hotel room in Hawaii, you can make a claim against your policy to recover the damage. You will, of course, have to pay the deductible, so the amount of the stolen goods will need to be enough to make the claim worthwhile.
Your homeowner’s insurance covers more than your house—it covers the things that make it your home. Be sure you help your agent and insurance company cover your things properly by keeping good records, taking out floaters when needed, and ensuring you have the right amount of coverage on your policy.
Whatever type of business you operate, you have important property that you rely on to get the job done. The physical property required by your business, from office equipment to manufacturing equipment, is vital to your operations and not easily replaceable. Think about how much it would cost you to replace everything your company uses each and every day to make your business run. Could you afford to start from scratch if everything were lost?
Covering Your Business Property
Property coverage is a vital part of your commercial insurance policy; it protects you against the loss of all of those items that represent a substantial investment in your business. It covers you for everything from the desk and chair you sit at to the computer equipment you need to keep up with business in the modern age.
Take a minute to do some mental calculations and figure out just how much you have spent gathering furniture and office equipment, as well as other equipment such as manufacturing systems that make it possible for you to stay in business. Chances are you didn’t buy it all at once, and you might not be aware of just how much you have invested or what you stand to lose in case of a fire or other catastrophe. Without those things you could not continue to stay in business, and you would need to have a lot of cash on hand to replace them.
Building Coverage Isn’t Always Property Coverage
If you lease or rent the space in which you do business, then someone else probably handles the coverage for the building itself. But their policy doesn’t cover you at all; it exists to protect the owners of the property itself. The things that you keep inside your office, warehouse, or factory are not covered by this policy. You need to carry your own coverage to ensure that if something happens, your property would be replaced.
If you do own the building in which you do business, whether a commercial space or a business run out of your home, it is a dangerous assumption to think that your property is covered. Many commercial building coverage policies have minimal coverage for property, and a homeowner’s policy doesn’t cover business items. Don’t assume you have coverage!
Protect your business from a potential disaster by getting property coverage to ensure that even after a fire or other catastrophic event, you will be able to replace everything and get back to business as soon as possible.