Scheduled Property: The Solution for Sublimits

With Homeowner’s and Renter's policies you can cover your home, your liability, and the items in your home. However, having a standard Homeowner’s or Renter's policy does not necessarily mean all of your items are properly insured. Certain categories of items are subject to limitations by Sublimits. This article will discuss how you can properly protect yourself by scheduling your property.

The Homeowner’s and Renter's policy covers just about every piece of property inside your home. Most policies even cover items you’re storing for others, and insure your personal property no matter where it is stored around the word! However, one of the biggest pitfalls with personal property coverage is that Homeowner's and Renter's policies have Sublimits. Sublimits are limitations on your personal property limit, assigned by category. Though almost all kinds of personal property is covered, certain categories are only covered up to the Sublimit’s stated value. These limitations can create the need to schedule your property if they are worth more than the total of the Sublimit.

Scheduling property is a fairly simple thing to do. At anytime, give your agent the type of property it is (E.g. Jewelry), a vivid description of the property (E.g. Women’s white-gold wedding ring, ½ kt. Princess-cut diamond with diamond paving), and the appraised value. Some categories of items don’t need a professional appraisal, but most companies will require a professional appraisal if the total value of an items is over a certain threshold.

The cost to schedule property is very affordable. The biggest problem with scheduling is getting the correct value, especially for jewelry. The price of precious gems and metals are continually fluctuating, so having an appraisal every year or two is vital. The $1000 wedding ring you bought in 1990 is definitely not worth only $1000 anymore.

On the opposite side of things, depreciation drastically affects other categories of items, especially technology (E.g. The $2000 you spent on a TV a few years ago may only be worth $400 now).  Some things can be easily appraised on your own using the internet, but professional appraisals are always the most accurate way to ensure you are setting limits properly. Appraising is usually a better option than paying too much for over-insured item as well.

By scheduling your high-worth items, you can bypass the Sublimit’s limitations on coverage. Depending on your insurer, you can sometimes schedule your items for Agreed Value, instead of the Actual Cash Value as well. Alternatively, some insurers will allow you to increase certain categories' Sublimits. However, individually scheduling items will guarantee you get the item's true worth in the event of a claim, and most Scheduled items won't have a deductible! Scheduling property is one of the best ways to make sure you have your items properly insured!