If you have lots of valuable personal items in your house, don't assume that your home insurance coverage will provide full compensation if they are lost or damaged. The issue of limits, exclusions, and lack of proper documentation or proof may all limit your recovery in case of a loss. The following tips will help you enjoy full compensation in case your valuables are lost or damaged.
Understand Your Insurance Coverage
The first tip is to read and understand your homeowner's insurance coverage. You don't want a situation where you are making a claim for a lost or damaged item and then are told it is not included in your coverage. If you have questions about your policy, consult your insurer or insurance agent for clarification before any damage occurs.
Keep The Receipts
If you buy a valuable item, keep the receipt in a safe place and use it as documentary evidence when submitting a claim. In fact, you should make a copy of the receipt and keep it separate from the original or take a picture of the receipt (or scan it) and save the digital copy in the cloud. That way you won't have to argue with the adjuster about the cost of a valuable during claim settlement.
Have The Valuables Appraised
If you have valuable items without purchase receipts or whose values have appreciated since you bought them, then you should have them appraised. Get a professional appraiser to come up with the true value of the items and preserve the appraisal report. That is the best way to avoid arguments with insurance adjusters when you are claiming $5,000 for a piece of jewelry you bought for $4,000.
Keep your inventory up to date
Ideally, every homeowner should keep an inventory of their belongings, particularly the high-value items. That is the best way to prove that you do own all the high-value items you are claiming if they are stolen or damaged in a fire outbreak. Whenever you acquire any valuable item, you should add it to your inventory and inform your insurance carrier about it.
Buy the necessary riders
Standard homeowner's insurance has coverage sub-limits or exclusions on certain items. For example, you may find that your jewelry is protected up to a $2,500 limit and your electronics only have a maximum protection of $2,000. In such a case, you won't get full value for your claim if you lose electronic items worth $5,000. Additional coverage is needed for full protection, and you may be able to get it in the form of a rider to your existing coverage.