I Lost My Engagement Ring!

Posted: Updated:

You lose something of value and your first question is "is it covered?" Insurance policies provide a limited amount for such losses, but generally not enough to cover expensive items. To be fully reimbursed, what do you do?  

When you purchase a standard homeowners or renters insurance policy, you assume all your personal property is fully protected in the event of a loss. That’s not necessarily true. Items of significant value, as well as any exclusive possessions, may only be partially covered.

What’s Does My Policy Cover?

Personal property is typically limited in your standard policy to a “blanket” amount and does not specify items covered.  For example, the policy may include $1,000 of blanket coverage for personal property.  If your home was robbed and your engagement ring, lap top, and TV were stolen, the max you would receive for all the items is $1,000. Hardly enough to replace one of the lost items! 

How Do I Recover My Full Cost?

If you want to be fully reimbursed, your only option is to “schedule” each item on your insurance policy.  Scheduling personal property requires the addition of a rider, floater, or endorsement to your homeowners policy.  This extension to your standard policy will list individually each item that you want to separately insure.  Remember, scheduled items will increase your premium.  Therefore, be sure to list only those items that justify the additional cost for the policy.  

Scheduled items also receive broader coverage.  A standard homeowners policy only covers a loss in the event of named perils such as fire, lightening, theft, explosion and vandalism.  What if your engagement ring is lost in the ocean while on vacation?  The standard policy would not reimburse you, but a rider would.

Another plus:  Scheduled property is not subject to the policy’s deductible. If your lost engagement ring was scheduled for the appraised value of $15,000, you would receive the full $15,000 from the insurance company.  No deductible!

What to Schedule?

Any property valued higher than the personal property limit listed within your policy is a candidate for scheduling. Jewelry, furs, collections, antiques, and art are among the more commonly scheduled items.  In addition, consider your electronics, cameras, sporting equipment and fine tableware, e.g., silverware, china, and crystal.

To schedule valuable possessions the insurance company will require a receipt for each item you wish to insure. If you don’t have a receipt, you’ll need to supply a qualified appraisal.

Be sure to keep your appraisals updated on all your items, but especially antiques and memorabilia, because their value tends to fluctuate. If you have too much coverage, you’ll end up paying unnecessary premiums. If you don’t have enough coverage your item will be inadequately protected in case of a loss.  

After you’ve gathered your receipts and/or had any valuables appraised, contact your insurance agent to add the personal property rider to your policy.

Summary

It’s important to fully understand the terms within any insurance policy. If you have items of value you, it’s important they are adequately insured.  The process of scheduling valuable personal property can be tedious, but knowing you can replace them without breaking the bank sounds pretty good!

Abby VanDerHeyden, CFP, is a Financial Planner with Bedel Financial Consulting, Inc.

  • Perspectives

    • Focused Collaboration Leads to Effective STEM Leadership

      As a woman who has built a career in a STEM field, technology, I have come to realize that collaboration is an essential ingredient for organizational growth and survival. As my year serving as president for Women & Hi Tech comes to an end, one of the most impactful takeaways for me has been how a shared vision and strategic partnerships can help change the landscape for women studying science, technology, engineering or math in Indiana.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • JPMorgan Chase Appoints Middle Market Manager

      JPMorgan Chase has promoted Christina Moungey to Indiana region manager for middle market banking, part of the firm’s commercial banking business. In her new role, she will be leading a team of bankers to serve local midsize companies on their banking and financial needs, including cash management, credit and financing and international banking. Moungey succeeds Bob McElwain, who recently was named head of the national agriculture sector for commercial banking.

    • Bond Yield Curve: Indicating Recession?

      The bond market's yield curve is sending us warning signals of an impending recession. What exactly is the yield curve? Is it really an indicator of the health of our economy? Should you care what shape it's in - steep, flat, or inverted? Yes, investors should pay attention! Let's start with the basics...

    • Caesars now owns Indiana Grand in Shelbyville and Hoosier Park in Anderson.

      Acquisition of Indiana Racinos Complete

      Las Vegas-based Caesars Entertainment Corp. (Nasdaq: CZR) has completed its $1.7 billion acquisition of Centaur Holdings LLC in Indianapolis. The deal adds Hoosier Park Racing and Casino in Anderson and Indiana Grand Racing and Casino in Shelbyville to Caesars' portfolio. The company says it will invest $50 million into various property improvements and IT upgrades at both facilities. Caesars says it plans to add table games to both properties, pending necessary approvals.

    • Holcomb says he hopes the state can serve as an example of "fair chance" hiring.

      Holcomb Names Board, Commission Appointees

      Multiple statewide boards and commissions will have new or reappointed members. Governor Eric Holcomb has announced appointments to the Indiana Law Enforcement Training Board, Indiana Uniform Law Commission and Ports Commission. They include...

    • Daredevil Brewing Co. was named Grand Champion Brewery of the Year. (photo courtesy Indiana State Fair)

      Indiana Brewers' Cup Winners Announced

      The Indiana State Fair has unveiled the winners of its 20th annual Indiana Brewers' Cup. The competition is split between professional brewers and home brewers, and presents medals for beers in a variety of categories.