Jewellery, Art, & Special Property Insurance

Jewellery, Art, & Special Property at a glance:

Limited Coverage for Certain Property

The typical homeowners policy offers plenty of coverage for personal property, usually offering a limit equal to 70-80% of the amount reserved for the residence (ex. Your home is covered for $150,000, so your contents and furnishings are covered for $112,500). While this is generous coverage, it doesn’t extend to all types of property for all causes of loss. Certain types of property, because of its high value and liquidity, is far more vulnerable to loss… either easily destroyed, easily stolen or both. For instance, an insurer protects your sofa right along with your fur coat for the same basic premium, but the two types of property don’t represent the same chance loss. Recognizing this fact, insurers put more restrictions on the coverage provided by a basic policy.

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1. Theft Coverage Limitations
When property is lost due to theft, coverage under a standard homeowner policy is severely limited (generally between $1,000 – $2,500) for the following types of property:

  • jewelry, watches, furs, and gemstones
  • artwork, antiques, rare books
  • coin and stamp collections
  • dinnerware, serving sets, trophies, and similar property made of or plated with solver, gold, platinum, or pewter
  • for firearms, accessories, and related property

2. Other Coverage Limitations
Several categories of property are subject to very modest limits (generally between $200 – $2,500) of coverage, regardless of the cause of loss (theft, fire, accidental breakage, etc). Specifically:

  • money, bank notes, coins, medals, gold, silver and platinum (other than jewelry or dinnerware)
  • securities, accounts, deeds, tickets, stamps, manuscripts, passports and similar property
  • watercraft and related property including their trailers
  • trailers not used with watercraft
  • business property located in your residence

3. Remind Me About Homeowners Limitations
In part 1, we told you that the typical homeowners policy contains substantial coverage limitations for certain types of property. The modest insurance protection affects property that is highly vulnerable to loss because it is targeted for theft and/or has a high level of value in relation to its size. Examples are gold, money/securities, precious metal-plated dinnerware, jewelry, furs, stamps, electronic property, business property, watercraft and firearms. How Do You Handle The Limited Coverage Situation?

You have to do something extra to your insurance program. Insurance companies are happy to provide more coverage, if they are paid for their trouble. Specifically, limited coverage can be handled using the following methods:

Increased Coverage C Endorsement – this form is only appropriate for property saddled with limited coverage for theft losses. This form is attached to a basic policy and it increases the theft insurance limit (ie. for jewelry from $5,000 to $10,000).

Scheduled Personal Property Endorsement – this form is used for increasing coverage for property that has protection reduced for all sources of loss. The property is removed from the basic policy’s limits and is covered exclusively by the endorsement. This form takes more work since each item of property has to be listed and assigned a particular insurance limit.
NOTE: Appraisals are required for most items being scheduled on this endorsement.

Please Note: The above information is for information purposes. To ensure your coverage meets your personal needs please contact your Account Manager to review your special limits of insurance.

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