When you purchase homeowners insurance, you expect it to cover loss or damage to your home and its contents. However, many people are unaware of the limitations on certain items within their policies. Understanding these limits can help you avoid unpleasant surprises in the event of a loss.
Key Takeaways
- Homeowners insurance policies have limits on coverage for certain personal property items.
- Commonly limited items include jewelry, cash, firearms, and business property.
- You can increase coverage limits or purchase additional policies to protect valuable items.
Jewelry and Watches
Most homeowners insurance policies have a built-in limit for jewelry and watches, typically around $1,500. This amount may not be sufficient to cover the value of your precious items. Consider purchasing additional coverage if you own expensive jewelry or watches.
Cash and Equivalents
The limit for cash and equivalents, such as banknotes and coins, is usually around $500 or less. If you keep a significant amount of cash at home, be aware that your policy may not fully cover it in the event of a loss.
Firearms and Ammunition
Firearms and ammunition are also subject to coverage limits, often ranging from $1,000 to $2,000. If you have a collection of firearms, you may need to seek additional coverage to ensure they are adequately protected.
Business Property
Items used for business purposes, such as computers and office equipment, may have little to no coverage under a standard homeowners policy. If you work from home or have a home-based business, consider a separate business insurance policy to cover these items.
Electronics
Expensive electronics, including smartphones, laptops, and desktop computers, may have limited coverage under your homeowners policy. Typically, coverage for these items is capped at a few thousand dollars. If your electronics are particularly valuable, you may need to increase your coverage limits.
Musical Instruments
Musical instruments are another category with coverage limits. If you own valuable instruments, check your policy to ensure they are adequately covered.
What You Can Do About It
To protect your valuable items, you have a few options:
- Increase Coverage Limits: Request higher limits for specific categories within your existing policy.
- Scheduled Items Policy: Purchase a personal articles floater policy to cover high-value items. These policies often provide broader coverage, including protection against damage or loss.
Understanding the limitations of your homeowners insurance policy can help you make informed decisions about additional coverage. By taking proactive steps, you can ensure that your valuable items are adequately protected.
Knowing what your policy covers and what it doesn’t will help prevent any undue surprises in case of a loss. This list of limits within most policies isn’t by any means complete, and when you check your policy, you will find other categories that are worthy of your attention as well.
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