A False Sense of Security?
Often after one buys a home and purchases their home owners insurance policy they never look back. They feel protected until something goes wrong and they find out they were not. Many times this lack of protection is because the home owner had extra items that their home owner insurance either excluded or had limits on.
Expensive Items Such as Oriental Rugs, Jewelry, and Home Office Equipment, Probably Need a Rider
If you own certain expensive items, such as jewelry, Oriental rugs or home office equipment, more than likely you will need a rider on your homeowners insurance policy. A rider is like a mini-insurance policy added to your current home owners insurance policy and it will give added protection to certain items that may be excluded or have low limits on your home owners insurance policy.
Here is a list of the most common home owners insurance policy riders:
Jewelry: Most basic homeowner policies only cover up to $1,000 for jewelry. Purchasing a jewelry rider is very inexpensive and will protect each individual piece of jewelry you own not only against damage but theft. Make sure when you get your policy each valuable piece of jewelry you own has an agreed upon itemized value listed in the policy so there is no conflict if you have to make a claim. Also, see if you can get a discount on your jewelry rider for storing your valuables in a safe deposit box or fire safe box.
Artwork and Antiques: Typically, art work and antiques are covered better than jewelry, up to 75% of the value of your homeowner policy but some people would like additional coverage if they own a lot of expensive artwork and/or antiques. A rider for artwork and antiques is very inexpensive so it is certainly worth the cost.
Silverware: Coverage for sliverware on most policies is around $2,500 but like jewelry, theft coverage is not included. This means that you will not get any amount of insurance if someone steals any of your silverware. With an insurance rider, theft is included so if you have some silverware that is valuable to you and you would like to cover it for more than $2,500 and against theft then a silverware insurance rider would be a good choice for you.
Oriental Rugs: This is another item that has limited coverage under a typical home owners insurance policy. Home owners insurance companies know Oriental rugs are expensive and they do usually include them in your policy, but only up to $5,000 per rug with a limit of $10,000 total for all Oriental rugs. So, again, if you would like to make sure the cost of your Oriental rugs are reimbursed to you if they are damaged then you should purchase an insurance rider for them.
Home Office Equipment: This is a huge area that is commonly underinsured in most homes. It is common for a lot of families to have a home office as a central hub for the family to do research and planning. But, all those technological gadgets are expensive and most home owners policies limit home office equipment to $1,000. Make sure you tell your insurance agent about any expensive computers, fax machines, printers, and other communication devices and see what coverage you currently have. If you are not satisfied with your current coverage, add an insurance rider so you can replace any damaged or stolen items if needed.