1227 Checking home insurance policy good way to start new year

  • By Robin Hauenstein
  • December 16, 2010
  • 270
                        
You planned that special gift for Christmas. It’s taken a while to save, but you know that special someone will love the new gun, watch, ring, earrings, necklace, or bracelet you’ve carefully selected and purchased. And they do. On Jan. 2, a couple of days after the big New Year’s Eve party attended by everybody and their brother, the item can’t be located, along with some other jewelry. Now what? You call the police, and they file a report. The insurance claims adjuster takes a report and tells you the bad news: the new gift and the other items were not covered in your homeowner’s policy, and your reimbursement is very limited. The following sounds like a worst-case scenario, and it is. However, during this tough economic time and any holiday time, jewelry is an easy-to-sell item. Law enforcement officials say not a lot of questions are asked about jewels, coins, silver and gold plate items, guns, etc. They are easy items to disperse for quick cash. So how can you protect your valuables? It’s simple; talk to your insurance agent. Vaughn Troyer, a managing partner of the Hummel Group, said a homeowner insurance policy will cover many things, including the home and its contents. However, “there are certain classes of contents that are limited,” Troyer explained, and the payout on those items in the event of a theft could be somewhere between $250 and $500. Large amounts of cash, monetary items, and coin collections “cannot be verified” Troyer added. In the case of jewelry, guns, silver, items from a home-based business or home office used for business, Troyer said “you need to check on your homeowner’s policy…it varies by policy. With jewelry, with guns, fine arts, or breakables, you need to talk to your agent about those items.” If they aren’t covered, it’s important to schedule a policy for them. Troyer also described what he called “risk management,” that is, having a gun safe, or putting valuables not worn or used regularly in a safe deposit box. Those who plan on giving expensive holiday gifts, in the form of guns, plate or jewelry should also contact their agent and have those items added to a policy as well, Troyer said. “It’s new and people forget about it,” he noted. So what does a homeowner’s insurance policy usually cover? Troyer said it will cover problems such as fire, theft, sudden and accidental losses, frozen pipes or downspouts, and snow damage to the roof. However, he noted that damage caused by flooding or an earthquake will not be covered unless there are separate policies for those types of natural disasters. While an earthquake doesn’t sound probable, minor quakes have shook the Great Lakes region, and caused damage to homes, or items in them. Troyer said a homeowner’s policy “is not a maintenance policy.” That is, it won’t cover “normal, routine breakdowns,” or a need for new appliances. He also stressed that it’s important to have the proper coverage for your home’s worth, and also to check on any outbuildings, such as shops, sheds, barns, or detached garages. “Make sure that the house is up to value.” Troyer pointed out it always costs more after an event to repair or replace something that wasn’t covered by insurance rather than to take out a small policy or adjust the current one, to buy a little peace of mind.


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