In our previous column we explored the importance of insuring your home to full replacement cost. While that may be one of the most commonly asked questions, another difficult question arises from a heartbreaking, and unfortunately frequent situation. While losing your home or experiencing an auto accident are certainly dangerous and devastating, there are everyday situations that can become very upsetting and financially disastrous if your policy is not prepared with the proper provisions.

Here’s how it might look, and commonly does, when the optional endorsements on a homeowner’s policy have been overlooked:

“Hi Emily, this is Jane Smith. We were swimming yesterday and when I got out of the lake, my wedding ring was not on my finger! We looked and looked, and couldn’t find it anywhere. What’s the number for claims?” So I check her policy, and realize that she had not previously added her ring to the policy as scheduled personal property. (This means you add your special item to the policy as a singular addition for a low premium, and that item will be covered for extra perils i.e. causes of loss, such as mysterious disappearance, accidental damage, etc., that regular personal property is not afforded.)

The conversation continues with my response, “I’m so sorry Jane, but losing an item is considered mysterious disappearance. Your ring would have been covered like any other personal property if the claim was part of a fire, provable theft, or other covered peril. However, because it was not added as a scheduled item, unfortunately there is no coverage under the policy.” Jane then becomes upset and feels slighted that no one had ever discussed the advantages of adding her ring, or maybe feels foolish for being so focused on price of insurance that she cut corners that should not have been cut.

Here’s how the scenario could have played out; had she added her ring previously, my response would have been: “Oh Jane, I’m so sorry. While I can’t bring your ring back, I can certainly lessen the sting. You will have coverage for the ring because it is scheduled on your policy, and better yet, you will have no deductible*.  Let’s get you to claims so the adjustor can get a check to you right away.” 

One of the hardest things for an agent to have to do is advise someone that their claim will not be covered. While insurance simply cannot cover every item you ever buy for every loss that might occur, there are some ways to enhance your policy to include items of high or special value. Virtually everyone has things that should be added to their policy, and the low cost might surprise you!

Do you or anyone in your family:

• Hunt? What if your equipment is lost in the woods or gets run over by a quad? You can add your bow, gun, scope, etc.
• Use a laptop or computer? What if you drop it or spill a drink on it? You can add your computer.
• Play a sport? What if the golf cart behind you runs into your bag?
• Play your own musical instruments?
• Depend on a wheelchair?
• Use a nice cell phone or GPS?
• Ride a bicycle?
• Care about your collectible items?
• Enjoy your Fine Art?
• Watch an expensive television?
• Use a nice camera, and maybe have extra equipment?

You get the idea. For virtually every point in life, whether you are a college student with a laptop and bike, an art collector, hunter, or just a “regular” person with items you wouldn’t want to have to pay for again, scheduling personal property can be a huge advantage in the face of an unfortunate mishap.

Make sure you’re working with an agent who is dedicated to designing your coverage so it fits your personal needs, and making sure you understand how the policy works. 

*Most policies cover scheduled property with no deductible, but some items may have a low deductible. An informed agent will be able to tell you exactly how it would work for you.

Have a question for Emily? Email her at emilyh@lymansheets.com, or follow her on Twitter @AgentEmilyHarte, find her on Facebook, and connect with her on LinkedIn.