Over the years we all tend to fill our homes with stuff. Most of it is the normal, everyday trappings that fill our lives. But some of it is valuable - like your engagement ring, or your grandmother's pearls that you inherited, or the coin collection you've had since you were 10 years old.
With a typical renter's or homeowner's insurance policy, your personal property (furniture, clothing, jewelry, money, electronics, etc.) is covered under Coverage C while it is anywhere in the world. That sounds great, but as with most things, there are limits. For example, loss to personal property may be only covered if the loss is caused by certain perils. And if it is covered, there may be limits such as $1,000 for jewelry, $200 for money and coins, $1,000 for watercraft or $2,000 for firearms. Here are 3 reasons why it makes sense to schedule your valuable items:
1. What if you have a coin collection worth $1,000 or a ring with $5,000. You could consider a Personal Articles Floateror you could talk to your agent about endorsing your homeowner's insurance to "schedule" your valuable items. If you choose to schedule, these valuable items would be listed or "scheduled" on your policy with a detailed description of each item and the appraised value. Your premium would be adjusted according to the total value of your scheduled items. The scheduled items would then be covered for the full appraised value. So if your scheduled $5,000 ring is stolen, it is covered for $5,000 and not limited to $1,000.
2. Maybe you don't have any valuable items that have limits of coverage, but you have a grand pion worth $50,000. There may not be a limit on musical instruments for personal use, but if you have a total loss would your Coverage C limit (typically 50% or 70% of your Coverage A) be high enough to cover the grand piano AND all your personal property. If the grand piano, or other high value item, is scheduled its full value would be covered separately from the other personal property items.
3. Since your personal property is covered wherever you use it, what if you take a trip to the Grand Canyon and drop your new $1,500 camera into the canyon and break it? That's not a named perilon your homeowner's insurance and so it would not be a covered loss. Scheduling a valuable item would provide open perils coverage allowing you to recover the appraised value of the camera you dropped into the canyon.
So take a quick inventory of all the stuff you've accumulated - pictures or video can be a great resource if you have a claim - and see if scheduling valuable items makes sense for you.