Personal Articles Insurance 101
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy. Coverages are subject to individual insureds meeting our underwriting qualifications and to state availability.
Personal Articles insurance supplements coverage for possessions of higher monetary value, such as a diamond engagement ring, your grandfather's pocket watch, artwork, or a valuable collection. While most homeowners policies have limits on the dollar amount and type of loss that can be recovered, Personal Articles insurance will provide the protection you need for your most valuable possessions in the event of loss through theft, accident or natural disaster.
Learn more about Personal Articles coverage by reading the following:
When would a Personal Articles policy be needed?
The protection provided for personal property under the typical homeowners' policy includes coverage for your furniture, clothing, and appliances. In addition, it provides limited coverage for such items as jewelry, silverware, furs, and firearms. However, it may not cover some types of losses that may be important to you, such as the stone falling out of your diamond ring, or your antique statue that is accidentally broken. In fact, most homeowners policies set dollar limits on the amount of protection offered to cover the theft of items such as jewelry or furs (usually only up to $1,000), firearms (up to $2,000), or silverware (up to $2,500).
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What kind of property can be covered?
Many different types of possessions can be accommodated by the Personal Articles policy. Here's a quick listing of some of the items typically covered:
- cameras (video or still) and related equipment
- china and crystal
- firearms
- furs
- golfer's equipment
- jewelry
- musical instruments
- personal computers
- silverware
- works of fine art, including paintings, etchings, pictures and other bona fide works of art (such as oriental rugs, statuary, rare books, manuscripts and bric-a-brac) of rarity, historical value or artistic merit.
If you own something of value that is not listed above, it may still be eligible for coverage. You may want to discuss this with your local, independent agent.
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Broad coverage
A Personal Articles policy allows you to purchase better protection for your special property than would be available under the typical homeowners policy. In addition to being able to purchase higher limits of coverage, more perils are covered, and in most cases you receive worldwide coverage, including protection against mysterious disappearance. The policy also may be expanded to include loss due to breakage, something that is not available under the terms of a homeowners policy. That means, if you accidentally break something of a delicate or fragile nature, you're automatically covered! Although no deductibles apply to many types of losses, a $100 deductible may be applied to breakage caused by certain perils.
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Scheduling your property
To begin Personal Articles coverage, you will be asked to list all the items you would like to insure. This list, or "schedule" would include a detailed description of each item and the appraisal value. In some instances a copy of a current appraisal, conducted within the past five years, may also be required. This detailed schedule is attached to the policy. Lower valued items are often not listen on the schedule, but are covered on a "blanket" basis. Whether coverage is scheduled or blanket your premium is based on the total amount of insurance provided.
Though it isn't required for your policy, you may want to photograph each piece in your collection and store the photos in a safe place. If your entire collection is stolen or damaged, it will be easy to remember each item for your claim report.
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Newly acquired property
Your Personal Articles policy automatically insures most newly purchased possessions up to 25% of the total amount of insurance already insured (or $10,000, whichever is less ) for up to 30 days from the date of acquisition. In the case of fine arts, you have up to 30 days to notify your agent. The benefit: you don't have to worry about insuring your new item the moment you receive it. However, because this jewelry automatic coverage is only for a short time, don't wait too long, you might forget later!
Let's say that you purchase an expensive new lens to add to your currently insured camera collection. One day later, and before you have had a chance to ask your agent to add it to your policy, your camera and new lens are stolen. With a Personal Articles policy, both items are covered !
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Loss Settlement
Since items of this nature vary so widely, losses are settled differently, depending on the type of property insured. For fine arts, in the case of a total loss to a scheduled, appraised item, you are reimbursed for the agreed value shown on your policy.
For other classes of property on the policy (such as , furs, silverware, cameras, and personal computers) the value is not already agreed upon, and the value of your property will be determined at the time of the loss. You will then be reimbursed for either the:
- actual cash value of your property, or
- cost to reasonably repair your property to it's previous condition, or
- cost to replace your property with a substantially identical item, or
- the applicable amount of insurance.
- whichever of these is less.
You should read your policy for the exact loss settlement provisions.
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Loss to a pair or set coverage
Should you lose a jewelry or fine art item that belongs to a pair or set, you'll receive the full amount for the complete pair or set as long as you agree to return the remaining parts to your insurer. Slightly different options may exist for lost pairs or sets of other types of property. You should read your policy for the exact loss settlement provisions.
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The best precaution is prevention
In addition to insurance and depending on the value of your property, certain security measures for your residence, such as an alarm system, may be required.
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