When you’re buying renters or homeowners insurance, you’re probably thinking about the big things, like being able to replace your furniture and TV if a tree falls into your living room. But you should also be thinking about the items that might be vulnerable to thieves. Valuable items worth more than a certain amount often aren’t covered by your insurance policy unless you insure those items specifically. This is often called personal property insurance, scheduled property coverage, or an endorsement.
Some examples you might have at home:
Insuring your personal valuables typically costs about $25 for each $1,000 of coverage you need. If something happens to that item, you won’t need to pay a deductible. But make note of whether your insurance policy covers the replacement value of an item or the actual cash value of the lost or destroyed item. For items that are replaceable but may depreciate (like electronics), you want to make sure you can get as close to an exact replacement as possible—so you want to look for replacement value over cash value.
Don’t forget your documentation! For unique items that may have been passed down to you, you should expect to provide a copy of an appraisal to your insurer, so they have proof of the estimated value of the item. If it’s a new item like a top-of-the-line camera, you may need to provide proof of purchase to document the value.