What You Need to Know
Protecting Your High-Value Property
A standard homeowners insurance policy often has limitations when it comes to covering high-value items. If you own expensive personal property, such as jewelry, fine art, or collectibles, you may need additional protection beyond what a typical homeowners policy offers. That’s where high-value property insurance comes in.
This type of insurance ensures that your most valuable possessions are fully protected against damage, loss, or theft.
Let’s explore the key aspects of protecting your high-value items in Montana.
Understanding High-Value Property Insurance
What is High-Value Property Insurance?
High-value property insurance provides enhanced coverage for items that are worth more than the coverage limits of a standard homeowners insurance policy.
High-value property insurance provides enhanced coverage for items that are worth more than the coverage limits of a standard homeowners insurance policy.
These policies, often known as personal property floaters or scheduled personal property endorsements, can protect specific high-value belongings like jewelry, art, antiques, and electronics.
Common High-Value Items with Limited Coverage in Standard Policies:
- Jewelry (often limited to $1,500 for theft)
- Furs
- Fine Art
- Antiques
- Collectibles (e.g., coin or stamp collections)
- Silverware
- Firearms
- Electronics
- Musical Instruments
Personal Property Floater: A Key Addition
A personal property floater offers additional protection for high-value items beyond the limits set by a standard homeowner’s policy.
This type of endorsement, also referred to as “valuable items coverage,” allows you to individually list (or “schedule”) your expensive items for their appraised value, providing comprehensive coverage.
Benefits of a Floater:
- Higher Coverage Limits: Protect your valuable items with limits much higher than those in a typical policy.
- Broader Protection: Coverage can include accidental loss, which may not be covered by a standard policy.
- No Deductible: Often, there is no deductible on claims made under a floater policy.
- Worldwide Coverage: Many floaters provide protection no matter where the item is located.
Example:
Without a floater, standard homeowners insurance may only cover up to $1,500 for stolen jewelry. If you own a $10,000 engagement ring, you will need a personal property floater to fully protect it.
Appraisals and Regular Reappraisals
For high-value items, insurance companies often require an appraisal to accurately determine the coverage amount. It’s also recommended to have your items reappraised regularly, as the value of certain possessions, like jewelry or art, can fluctuate over time.
Coverage Limits for High-Value Items in Standard Policies
Here are typical coverage limits for certain high-value items in a standard homeowners policy:
- Jewelry: Often limited to $1,500 for theft.
- Furs: Typically grouped with jewelry and limited to $1,000 – $2,000.
- Fine Art and Antiques: May fall under general property limits.
- Collectibles: Usually limited to $1,000.
- Silverware: Often limited to $2,500.
- Firearms: Typically limited to $2,500.
- Electronics: Personal computers might be covered up to $5,000, while other electronics are typically limited to $1,500.
If your high-value items exceed these limits, you’ll need to consider additional coverage options like floaters or endorsements.
Property Endorsements vs. Personal Property Floaters
Both scheduled personal property endorsements and personal property floaters offer ways to increase coverage for high-value items, but there are differences:
- Scheduled Personal Property Endorsement: An addition to your existing homeowners policy that increases coverage limits for specific items. It is typically less expensive but may have coverage limitations.
- Personal Property Floater: Provides coverage for individually listed high-value items. Floaters often offer broader protection, including accidental loss, and usually have no deductible.
Personal Inland Marine Insurance (Floaters)
Personal inland marine insurance—often referred to as floaters—offers protection for personal items that move with you, covering them wherever they are located. Floaters are ideal for high-value items that you may take outside of your home, such as:
- Jewelry
- Fine art
- Cameras
- Musical instruments
- Collectibles (stamps, coins, etc.)
Coverage Features:
- Open Peril Coverage: Provides coverage for all types of loss unless specifically excluded.
- Worldwide Protection: Ensures coverage no matter where the item is located, whether it’s in your home or on vacation.
- No Deductible: Typically, floaters do not require a deductible, meaning you don’t have to pay out of pocket before receiving compensation for a loss.
Types of Personal Inland Marine Policies
Personal Articles Floater: Covers high-value personal items that are individually listed, such as jewelry, fine art, and antiques. Coverage is often on a replacement cost or agreed value basis.
Personal Effects Floater: Protects personal belongings you take with you while traveling, such as clothing, electronics, or sports equipment. It provides open peril coverage worldwide.
How Settlement Works: ACV vs. RCV
When insuring high-value items, it’s important to understand how claims will be settled:
- Actual Cash Value (ACV): Pays the current value of the item, accounting for depreciation.
- Replacement Cost Value (RCV): Pays to replace the lost or damaged item with a new one of similar kind and quality, without accounting for depreciation.
You may be able to purchase replacement cost coverage for certain high-value items, providing better financial protection.
Key Differences Between Scheduled Personal Property Endorsements and Personal Inland Marine Floaters
Specificity: Personal property floaters typically cover individual, high-value items, while endorsements may increase the overall category limit for certain possessions.
Coverage Breadth: Floaters often provide more comprehensive protection, including accidental loss and worldwide coverage.
Cost: While floaters are generally more expensive, they offer more extensive protection and flexibility.
Get the Right Coverage for Your High-Value Items
At Armor Insurance Agency in Miles City, Montana, we understand that protecting your most valuable possessions is a top priority. Whether you need coverage for jewelry, fine art, or collectibles, we offer customized high-value property insurance solutions to safeguard your investments.
Don’t leave your prized possessions underinsured—contact us today to learn more about our high-value property insurance options and get a personalized quote!