While personal property coverage is an important part of your homeowners insurance, it's a good idea to take a close look at your policy to understand what this coverage may help protect. You may find that an additional coverage, known as scheduled personal property, can help provide greater protection for some of your most valued belongings.
To properly protect your belongings, you should understand a little more about the differences between the two types of coverages.
While a standard homeowners policy typically provides coverage for your personal property, it may set a dollar limit on how much it'll pay for certain categories of valuables like jewelry (sometimes there's even a per-item limit).
For instance, there may be a $1,500 sub-limit on what your insurance will pay for jewelry after a theft — even though your overall personal property limit is likely much higher.
So, if you were to file a claim for the theft of a piece of jewelry worth $500, you'd probably be in good shape. But if the stolen piece of jewelry was valued at $2,500, you would likely only be covered up to the $1,500 sub-limit (assuming, of course, that it's a loss covered by your policy).
That's where scheduled personal property coverage comes in. It's an optional add-on to your homeowners insurance policy that provides coverage for a greater number of risks and may increase the coverage limits on specific, high-value items.
Here are some belongings you might want to consider for scheduled personal property coverage:
To get the items scheduled, you typically need to provide your insurance company with a recent receipt or a professional appraisal, Insurance Information Institute (III) says.