Valuable articles insurance policies provides extra coverage and can cover your valuables (such as jewelry or art) much more extensively than your homeowners insurance policy.
Many people think of valuable articles insurance as the same thing as the standard personal property insurance included in their homeowners policy.
While there may be some overlap, they are, in fact, two different things. Here's what you need to know about what it covers, how much it costs, and whether or not you should get it.
What is valuable articles insurance?
When you buy homeowners insurance, part of that policy is the personal property insurance, which is meant to protect the value of the things you put inside your home—your personal belongings.
However, this coverage is a percentage of your home insurance value, and it often has exclusions and deductibles, especially when it comes to specialty items such as jewelry.
For people who own a collection of high-value items (jewelry, art, wine and spirits, collectibles, etc.) whose value is not entirely covered by standard personal property insurance, a valuable article insurance policy can cover the high-value items.
It is wholly independent of your homeowners insurance. And, for this reason, it covers the entire cost of your valuables and often has fewer limitations.
MORE: Does homeowners insurance cover engagement rings and other jewelry?
What does valuable articles insurance cover?
The extensive coverage provided by valuable articles insurance includes:
All-risk coverage: This covers most types of risk and doesn't have any deductibles. These policies can have a few restrictions, but they are still considerably more inclusive than a personal property insurance.
Worldwide coverage: You and your family-inherited jewelry can travel the world without care; your insurance will have your back no matter where you go.
Mysterious disappearance: You don't know exactly what happened, but one of your precious items is now gone. Most policies offer coverage for misplaced, stolen, or lost things.
Blanket or scheduled items: You can choose to do blanket coverage (which covers all of the items in a collection with some limitations) or select scheduled items and ensure each collection piece separately.
Breakage or damage: In case your items suffer damage due to a fire or smoke damage.
Spoilage: In case your items get damaged due to humidity or climate control systems.
Newly acquired: Protects the newest addition to your collection.
Natural disasters: So that in case of wildfires, earthquakes, floods, or tornadoes, your things are still covered.
Another thing to note is that some companies offering valuable articles insurance also provide appraisal services, and it's often recommended to have your items appraised at least once a year.
How much does valuable articles insurance coverage cost?
Although having a valuable articles insurance policy will come at an additional cost, it might not be as expensive as you think, and it will undoubtedly come in handy when you don't have to replace any high-priced items out of pocket.
Of course, prices will vary depending on the company, where you live, and the plan that you choose. Typical valuable articles insurance policies can cost around 80 cents per $100 of insured goods. Customers are able to insure $12,000 by paying just $125 a year.
Should you get valuable articles insurance coverage?
If your collection is extensive and no standard homeowner policy will cover it in its entirety, adding a valuable article insurance policy might be a worthy investment that can save you money and stress down the line.
It really depends on how many valuable items you have in your home and how valuable they are. If your valuables were to be stolen or otherwise need coverage, would you be satisfied with how much your current homeowners insurance policy would cover? If the answer is "no," looking into a valuable articles insurance policy is a good idea.
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