Scheduled Personal Property – is the frequently overlooked, but an often-necessary portion of protection for your private insurance package. Why should consumers consider extended insurance coverage for their personal property – including collections – and why should seeking out a qualified appraiser when obtaining that coverage be a part of your coverage strategy? It is important to have specific items covered above and beyond your standard policy because all policies have limits.
What is Scheduled Personal Property?
According to Allstate, Scheduled Personal Property “provides extended open peril coverage for certain categories of high value personal property. Typically, property must be appraised and scheduled (described on the dec with a specific item limit) although some categories may qualify for blanket coverage (a limit for all the items for a certain category).”
Also called a “floater,” “rider,” or “endorsement,” Scheduled Personal Property is a condition or provision added to a policy that provides additional information or stipulates additional agreements. If – for instance – your homeowners policy has a coverage limit well below the value of your personal property, you will want Scheduled Personal Property that details the discrepancy in value and broadens your coverage to accommodate. Scheduled Personal Property spells out an agreement that allows a policy holder to extend the standard coverage to items not covered or items with limits lower than the actual property value under the basic policy.
What is covered under personal property coverage?
Personal property includes the things you own – furniture, electronics, clothing, and other household goods. Basic personal property coverage will help pay to repair or replace these typical belongings after a covered loss. But you should consider coverage for additional extraordinary items that aren’t covered under your policy. Sometimes the value of those items exceeds your coverage limit – hence the need for Scheduled Personal Property.
What isn’t covered under personal property coverage?
If you ever watch Antiques Road Show, you know they always say “for insurance purposes, I would value this at…” That tells you that insurance is IMPORTANT to consider for individual items you own.
Rare and unique items such as heirloom jewelry, fine art, antique furniture, or an expensive sports memorabilia collection don’t fall under your typical insurance policy and will need to be properly documented. Having Scheduled Personal Property ensures all parties (the policy holder and the policy provider) are aware of all items that fall outside of the policy, their specific details, and their estimated value. Stipulating Scheduled Personal Property makes provisions to ensure your treasures are protected.
- Wedding / engagement rings / jewelry
For example: A $20,000 engagement ring. Your basic coverage item on jewelry is $1,000 per item.
- Fine art
For example: You jumped in to Bansky’s work early on and its value spiked AFTER you bought it.
- High end cameras
For example: Your picture taking bug bit you to the tune of $5,000 or more for a telephoto zoom lens.
- Sports memorabilia
For example: The baseball card collection your grandpa handed down is a gold mine.
- High priced guns
For example: You bought a George Gibbs shotgun – $6,500, well over your policy’s item limit for firearms.
Do you need appraisals for a Scheduled Personal Property policy?
As you can imagine, insurance companies have specific definitions for what is considered personal property. They also follow strict guidelines for coverage and a value limit per item. For that reason, policy holders can’t just “guestimate” the worth of their items. Insurers require a formal appraisal of items on the Scheduled Personal Property.
Beyond appraisals – a detailed Scheduled Personal Property strategy should include photos and receipts.
Important to all of this is keeping and maintaining detailed records of your possessions, their value, and proof of ownership. Some insurance providers will stipulate a requirement of receipts or photographs to make a claim on your scheduled personal property. But don’t think of this as a speedbump to coverage – by including a well-written appraisal featuring photos and receipts you guarantee that you are protecting your valuables at the proper level (not under- or over-paying) and will save you steps in the event that your items get damaged and need replaced or you need compensated for their loss.
How to make Scheduled Personal Property work for you:
Protect yourself and your heirlooms or collectibles by properly insuring the items with a personal property rider:
- Take the proper steps by having a conversation with your agent
- Collect photos and receipts to prove ownership and condition
- Have a qualified appraiser provide a definitive value assessment
- Update values based on market trends to stay up-to-date with your coverage
If you are looking for more details about Personal Property Riders contact our office: