A standard homeowners policy offers a limit equal to half of the amount reserved for the residence (ex. Your home is covered for $150,000, so your contents and furnishings are covered for $75,000). While this is generous coverage, it doesn’t extend to all types of property nor for all causes of loss. Certain types of property, because of its high value and liquidity, is far more vulnerable to loss…either easily destroyed, easily stolen or both. So, to compensate for this difference, insurers use coverage restrictions.
Theft Coverage Limitations
When property is lost due to theft, coverage under a standard homeowner policy is severely limited (generally $1,000 – $2,500) for the following types of property:
- jewelry, watches, furs, and gemstones
- dinnerware, serving sets, trophies and similar property made of or plated with silver, gold, platinum or pewter
- for firearms, accessories and related property
Other Coverage Limitations
Several categories of property are subject to very modest limits ($200 – $2,500) of coverage, regardless of the cause of loss (theft, fire, accidental breakage, etc). Specifically:
- money, bank notes, coins, medals, gold, silver and platinum (other than jewelry or dinnerware)
- securities, accounts, deeds, tickets, stamps, manuscripts, passports and similar property
- watercraft and related property including their trailers
- trailers not used with watercraft
- business property located in your residence
- business property located away from your residence
- certain types of electronic property (CD players, DVD players, TVs, radios, computers )and related accessories) which is lost or damaged while in a car or is located away from your home and used for business.
Please refer to part two on how to get more coverage for these classes of personal property.
