Did you receive any new ‘toys’ or expensive gifts over the holiday season? If so, a review of your personal property insurance is probably in order. In fact, we here at Mayville Insurance recommend taking time every New Year to assess your coverage needs and update the inventory of your home. In this post, you’ll learn how to calculate the appropriate limits for your policy and what to expect if you file a claim.
Personal property coverage – also known as ‘contents coverage’ – helps compensate you for the loss of items your own due to a covered event. This typically includes things like electronics, clothing, children’s toys, dishes, towels, curtains, and more. If you rent or own a condo, it is up to you to determine how much contents coverage you may need. If you are a homeowner, you may have coverage limits set by default to equal half of your total structural limits (Coverage A). At Mayville Insurance, we believe every homeowner’s needs are different. That is why we recommend taking inventory of your home to determine exactly what yours may be.
The only way to be sure of what you own is by taking inventory of it and keeping it in a safe place. You can use pen and paper, but many people find it easier to store information in a cloud-based software program or app. Either way, you may find that a home inventory can:
- Expedite the claims process
- Help you track your actual coverage needs
- Help you report losses for tax purposes
The Insurance Information Institute offers a guide for taking inventory of your possessions. Generally, that means listing items room-by-room and then placing them in their respective categories. Write down or snap a photo of serial numbers and purchase receipts, as well as the items themselves when possible.
It also means calculating the value of ‘big-ticket’ items, such as firearms, fine jewelry, furs, and precious metals, to assure they are covered under the special limitations of your policy. Often, these types of items are subject to limited coverage and require scheduled coverage to protect them.
If all goes as planned for 2018, you won’t need to file a claim against your personal property coverage. However, accidents can happen. If you need to report a loss, remember that the value of that loss will be subject to your deductible. Also, keep in mind that you may only be reimbursed based on the actual, depreciated cash value of your belongings – not the cost to replace them with new ones. If you prefer replacement coverage instead (something we generally recommend to most clients), talk to an agent here at Mayville Insurance about adding a replacement coverage endorsement to your policy.
As always, our team is ready and waiting to assist you in calculating your coverage needs. We can help you update your 2018 personal belongings coverage to ensure the reliable protection you need. To request your free quotes, contact our office today.