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Posted by on Feb 20, 2019 in Blog, Home Insurance |

3 Things to Know About Scheduled Property Insurance

3 Things to Know About Scheduled Property Insurance

One of the most commonly utilized components of a home insurance policy is the part that helps cover the cost of your personal property if it’s stolen or damaged. Personal property protection is usually a percentage of your dwelling coverage, often between 40-70%. That means, if you have $300,000 in dwelling coverage, you’d have 40-70% percent of that number in personal property protection.

But let’s say you have many valuable belongings in your home whose value exceeds your personal property protection. You risk having to cover their repair or replacement costs on your own once your personal property insurance limits are reached. So, is there anything you can do? There sure is, and it’s called scheduled property insurance!

What is Scheduled Property Insurance?

Scheduled property insurance is a type of coverage meant to give you additional protection above and beyond your personal property insurance limits. You purchase this insurance on its own, as it isn’t automatically included in your home insurance policy.

How Does Scheduled Property Insurance Work?

When you “schedule” an item of personal property, you’re adding additional insurance coverage for it. For example, if you have a watch worth $3,000 but your policy states that you’re only covered for up to $2,000 in losses for watches or other jewelry, you could schedule that item for extra protection so the entire $3,000 is covered. Once an item is appraised, you will know exactly what it’s worth and you can determine how much extra coverage you’ll need.

The Advantages of Scheduled Property Insurance

When your basic property insurance is used to reimburse you, you’ll usually receive the actual cash value for an item, which means things like depreciation are taken into account. However, with scheduled property insurance, depreciation isn’t a factor and you’ll be reimbursed for its replacement cost. Another significant benefit of scheduled property insurance is these particular policies do not require paying an additional deductible.

Do you have special items you’d like to insure or questions about your home insurance policy? Get in touch with Lupton and Luce Insurance for help with all of your insurance needs today!