Posted by Andy Gregory on Thu, Apr 23, 2009 @ 09:27 AM
OK, it happend again. A good friend of mine had his $3,500 mountain bike stolen from his house yesterday. This is no ordinary bicycle, this is a precision machine that doubles as a work of art. And now it is probably being sold to some kid for $100 who will wrap it with electrical tape to hide its true identity.
Although he has homeowners insurance, he didn't have it scheduled on his policy. This means that he is going to have a valuation war with his insurer, and will also have a $500 deductible to bring his settlement down further. The valuation challenge will be centered around the replacement cost feature of his policy, which provides coverage for like kind and quality. This means that they can and will take depreciation into consideration. Scheduling an item provides a valuation consensus up front, establishing the basis for fair settlement in the event of a future claim, with no deductible.
Everyone, take inventory of your valuables and insure them properly!
Posted by Andy Gregory on Fri, Apr 03, 2009 @ 09:10 AM
Times are tight. OK, brutally tight. And you know that human nature dictates that our surroundings and experiences are the proximate cause of behavior. So it comes to no surprise that when times are tight, some in our society will turn to crime to make ends meet. This is evident in the recent increase in home break-ins being reported in the news.
When thieves break in to your home, they take things like flat screen TV's, computers/laptops, and stereos. These are typically covered under Coverage C of the typical HO-3 homeowners policy, subject to the limit and deductible. But how about firearms and jewelry? Unfortunately, many homeowners policies limit theft coverage for these items; $1,500 for firearms and $1,000 for jewelry, depending on the insurer. The way around this is to specifically schedule appraised jewelry and firearms in order to have it covered properly. There may be endorsements available to increase these limits without scheduling, but that will vary from insurer to insurer. Homeowners policies also have other limits for specific items, such as cash and business property.
The point here is that it may be a good time to examine your personal belongings and talk to your insurance agent/broker to determine whether you have any potential gaps in coverage in the event of a burglary. Your agent/broker can only help you if you help them!