Gone are the days of cinder blocks and wood plank shelving. You’ve come a long way from that old trusty rug and CDs (or in some cases, actual vinyl albums) stored in milk crates. So it is with the first apartments, and sometimes also with the second and third apartments. It’s what you could afford when you first settled. And it was fun, sort of. But today is a new day, and you have paid your debt and then some. You are the king or queen of your very own castle, a castle as well-appointed as any luxury model home, with beautiful rugs, antique furniture, and other treasures you’d hate to lose.

Since your home, and to some extent the items that furnish it, will probably be the best investment you can make, it is important to protect this investment and the items that enhance it. The easiest way to do this is to make sure you have adequate insurance coverage for your home and furnishings.

How much coverage is enough?

Determining the amount of coverage needed is crucial. Let’s say that beautiful oriental rug that once belonged to great-aunt Hilda has finally come to rest in your hands, only to be irrevocably damaged when someone at the party you’re throwing spills Merlot on it. Other than doing it frantically on all fours, with carbonated water and baby wipes to the delight of your guests, what would you have to do to be “whole” again, and more importantly, stop Great-Aunt Hilda from going crazy? ? she seriously?

First, if you own your home and have a mortgage on it held by a bank, then you will be required to maintain adequate coverage on the “home,” the actual building that forms the structure of your home during the mortgage. term of the loan. . The lender recognizes the value of this investment and will ensure that your investment is protected by requiring that it be adequately covered by insurance. But how does this insurance coverage extend to Great Aunt Hilda’s prized Persian rugs and all the other furnishings that grace the interior of her castle/house?

Estimated value

An insurance agent who writes a policy for your home will likely leave an estimate of the value of the contents of your home at your discretion. Your insurance agent may even ask you directly, “How much do you think the contents of your home are worth?” After this consultation with another, you may or may not feel qualified to answer: “Is that estimated value real or replacement?” Your agent may encourage you to opt for coverage that allows those lost items to be recovered again by either: repair, replacement, or receipt of cash payment, such as most common household furnishings (other than art and other collectible items), depreciate considerably in value over time.

But what about those two rare oriental rugs dear Aunt Hilda left you? Will you be expected to determine the value of these items? Well not exactly. It’s one thing to estimate the value of last year’s CD player at $129, when its cost may be closer to $89, but quite another to estimate the value of a pair of rugs at $5,000 each. Because you are limited to $1,000 theft coverage on these types of items when claimed under your homeowners policy, an estimate of $5,000 per rug under your standard policy would only provide $1,000 coverage, for items you say that are worth closer to $10,000. That’s why you may want to consider covering such items, those worth more than $1,000, with a rider to your homeowners policy.

• So what is a schedule? It is a list of items that may not be adequately covered under your standard homeowners coverage.
• Who should consider a schedule? If you own fine art, collectibles, guns, jewelry, silverware, and fine rugs, you may well benefit from adding a Rider to your policy.
• Do the riders cover losses other than standard risks? Items listed in the Rider are subject to broader coverage, beyond fire and peril, than is provided in the standard homeowners policy. Schedule items include coverage for accidental and unforeseeable events: like permanently Merlot-stained carpets.
• Are the Rider items included in the deductible? A Rider also benefits you because these items are not subject to a deductible.
• What proof must be provided to add a rider to your homeowners policy? To include a Rider to your homeowners policy, you will be asked to justify the value of each item to be included in the Rider. This can be provided in the form of certificates of authenticity, sales receipt, or by appraisals.

You, the owner, with the help of your insurance agent, must determine whether or not your household items are worthy of listing on an Addendum. This way, with a little extra coverage, your Aunt Hilda’s treasured rugs can exist to be passed down to the next generation.