Homeowners Coverage - Again
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!