Luxury Gifts and Expensive Items Covered by Scheduled Article Insurance
People love to give their loved ones luxury gifts such as jewelry, cameras, and sports equipment at this time of year. Besides the excitement and joy of gift-giving during the holiday season, what do you do about insuring expensive gifts? Sure, you have your home insurance, but some items could be excluded from the policy or the policy limits could be insufficient to replace those shiney new items.
Forgetting to insure those diamond earrings for your wife or rare stamp collection for your kids could mean a significant financial loss if they were to get lost or damaged. You need to find out before purchasing expensive gifts if your existing homeowner’s insurance covers these high-end items if they were to get lost, stolen, or damaged.
Let’s take a closer look at the specific home insurance called scheduled article insurance and what items are covered in this insurance policy. We’ll also explain what unscheduled article insurance is and what things are covered in that policy.
What is scheduled article insurance?
If you have homeowners insurance, scheduled article insurance is an add-on to your current policy. Scheduled article insurance is also called an endorsement, rider, or floater. This type of additional insurance policy is specifically meant to cover the total worth of specific pricey items.
What items are covered by scheduled article insurance?
Here are the following items that are typically covered by a scheduled article insurance endorsement:
- Bicycles and their equipment
- Cameras and their equipment
- Electronics and computer software
- Jewelry such as diamond rings, necklaces, earrings, and watches
- Fur coats and accessories
- Fine art purchased from art auctions
- High-worth antiques
- Golf equipment
- Money and banknotes
- Musical instruments such as guitars, pianos, drums, and brass
- Personal belongings in a safety deposit box
- Stamp, card, and coin collections
- Rugs and tapestries
- Silver and goldware
- Sports equipment
- Watercraft and their equipment and motors
- Wine collection
How do you get scheduled article insurance?
To schedule your expensive gifts and prized possessions, you need to contact your home insurance provider and add it to your policy as a ‘scheduled item.’
What are the benefits of scheduled article insurance?
If you are planning to buy expensive gifts or already own possessions that hold sentimental value, scheduling the specific items contains the following benefits:
- Scheduled article insurance is a coverage enhancement added to your current home owner’s policy to raise payout limits on those expensive items.
- The main benefit is that scheduled property items are protected from types of loss that aren’t covered by your standard home owner’s policy. An example would be if a set of diamond earrings mysteriously disappeared from your home. Or the rare stamp collection got damaged by a house fire or flooding.
- Scheduled article insurance extends protection to its policyholders. Depending on your current policy, you might be able to lower your deductible or have no changes at all. Be sure to discuss it with your home insurance agent.
Now let’s discuss the counterpart to scheduled article insurance called – unscheduled article insurance and what items are covered.
What is unscheduled article insurance?
Unscheduled article insurance refers to assets and personal possessions that are covered under your private property insurance contract. However, these items have not been specifically ‘scheduled’ or endorsed.
What items are covered by unscheduled article insurance?
These are the following items that are typically covered by an unscheduled article insurance policy:
- Kitchen appliances
- Clothing and shoes
- Family heirlooms
Compared to scheduled items, unscheduled article insurance usually involves low-value items. Remember that some insurance companies might not offer coverage on unscheduled items if they get damaged or stolen while you are away or if a house fire or natural disaster occurs. Usually, there are monetary limits on the dollar amount of coverage on each unscheduled item.
What items are not covered by unscheduled article insurance?
These are the following items that are not usually covered by an unscheduled article insurance policy. Double-check with your current policy to see the standard coverage limits outlined in your unscheduled article insurance policy:
How does unscheduled article insurance work?
Since unscheduled article insurance covers lower-value items than scheduled items such as diamonds and money, insurance companies typically set monetary limits on the amount of coverage that applies to each item. Let’s use an example.
Amanda has a homeowner’s insurance or renter’s insurance policy worth $4,000. Within the $5,000 limit, unscheduled items have set limits of up to $1,000 for clothing, $1,000 for furniture, and $2,000 for jewelry. Other items can be added, such as sports equipment, family heirlooms, and small electronics.
If anything happens to her personal belongings, such as damage to those items caused by a fire, flood, or burglary, Amanda simply takes inventory of the items damaged or stolen. She adds up the total value and submits the estimations to her insurance company for compensation.
What’s the difference between scheduled article insurance vs unscheduled article insurance?
Scheduled article insurance lists the description and the total limit of a specific item. For example, a scheduled article could be diamond earrings with a total limit of up to $10,000 coverage. However, unscheduled article insurance covers a collection of smaller-valued items such as one gold bracelet and a diamond ring worth $5,000. There is a set deductible amount on the unscheduled items.
With scheduled article insurance, you get broader protection, including additional risks such as accidentally dropping the diamond earrings down the drain. If you have unscheduled article insurance, your diamond ring might not be covered if it falls down the sink.
Now that you know the difference between scheduled article insurance and unscheduled article insurance, we hope we have given you relief about protecting your expensive gifts and most valuable possessions.