A homeowners’ insurance policy is written to protect you from various financial losses. In most cases, a homeowners’ policy covers most of your valuables. It will help rebuild your home and replace many of your lost personal belongings. It also covers any liability you may face if someone is injured while visiting your home. However, it doesn’t cover everything, and you should know its coverage limit in case of a catastrophic event.
Basic Policies Have Limits
A basic homeowners’ policy has specific limits on what it covers. Insurance companies often put limits on their coverage when it comes to assets like coins, bullion, medals, banknotes, cash, silver, and gold. $200 is a common amount of coverage for cash and gold. One of the main reasons cash, gold, and other forms of “currency” have such limited coverage is that they are easily liquefied. It is a common target for thieves and is virtually untraceable if stolen during a robbery. Currencies are much safer if stored in a bank, safe, or safe deposit box.
Additional Endorsements for Your Valuables
If you have items of value, you may need to purchase additional endorsements to make sure you have sufficient coverage. Antiques, precious jewelry, fine art, or any other type of collectible can be precious compared to other items. If you know an article is expensive, go the extra step and have the item appraised. Once you know its true value, you will be able to purchase additional insurance that will provide you with sufficient coverage. You may need to purchase additional policies for other items as well. While you may purchase additional gold or silver jewelry coverage, it could be more difficult for ingots or coins.
Know What Your Policy Covers
Go through your policy carefully to find out the limits of your policy. If you don’t understand something, make it a point to contact your insurance agent. They can help you sort through what you are reading and give you a better idea of what you are insuring. After a thorough policy review, you will know whether or not you should consider purchasing additional endorsements.
Understanding what types of valuables your policy will cover is important. If your policy does not cover valuables like coins, gold, or bullion, you should deposit them in a safe bank instead of keeping them at your home.
If you want to know more about your homeowners’ insurance policy in Arcadia, CA, contact us today. At Weaver & Associates, our experienced agents can help you figure out what you should do with your valuables if your homeowners’ policy doesn’t cover them sufficiently. We will provide you with a customized plan to adequately cover all your valuable belongings.