This really depends on the item and the provisions the insurer provides under their blanket cover. Some items may be expected to appreciate significantly, so where the value is high you may want a guarantee to protect against this increase in value. Some blanket coverages have high per-item limits, while some insurers provide very low per-item limits. These limits can range from $250 to $50,000 depending on the insurer.
It depends. For many insurers, current appraisals will be required to add items under scheduled coverages. However, some insurers specialize in the more affluent markets, and are comfortable with insuring items without appraisals unless the insured amount reaches a larger amount. With these markets, sometimes appraisals are not required unless the individual item exceeds $50,000 or $100,000. Appraisals, especially when required for multiple items, can end up costing a significant amount of money, especially if an insurer requires them to be updated every five years.
Insurers will differ on how they handle damaged items. Some insurers will require the item to be repaired to receive full value in a claim, while other insurers will provide the option of a cash settlement and leave it to you to decide how to best proceed.
Insurers also differ on how they compensate you for a lost item from a pair or set of items. If you lose a single earring, is it even possible to obtain a matching replacement? Some insurers will cover only the value of the lost item, while other insurers will allow you to surrender the remaining item(s) of the pair or set and receive the full replacement value.
This depends again on the particular insurer. In many cases, you will only receive full value if the item is replaced, otherwise you will receive a reduced amount. Other insurers will pay you the full insured value regardless of whether you replace the item.
Safes are helpful to dissuade an inexperienced thief, but pose no deterrent to a targeted theft. Professional thieves will often take the entire safe, and will usually cause significant damage to your home in the process. The “Million Dollar Guarantees” provided by some safe manufacturers only apply when the safe can be proven to have been opened. If the safe is gone, it is not going to help you.
Again, the rates will vary between insurers. For jewelry, the rate is typically between 1-1.7% of the insured value. Other collectibles will vary depending on portability and their likelihood of damage or theft. Reduced premiums are also available for items that are kept in a secure bank vault.
Laura does the work to get us the best prices with the best coverage. Her yearly renewal visit is comprehensive to say the least, but when she leaves, we all understand the exact nature of each and every policy our business has.
Helen is super nice, knowledgeable, and quick. Our new policy is saving us $700/year, for a plan that’s actually better than the one our previous broker arranged.
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