What is with Scheduling Personal Property?
Ok you are about to get a new homeowners policy or your policy is renewing and the agent asks you if you want to schedule any personal property.
What does that really mean? Is scheduling necessary? What will it cost?
First off the concept of scheduling can be tricky to understand. Many people assume that part C (Personal Property) of their homeowner’s policy is all they need to protect there possessions. This is can be true, but if you read your policy carefully you will discover there are sub limits on certain types of property such as firearms, jewelry, furs, cameras etc…
This means in most cases on a basic policy you will only get a listed limit regardless of the items actual value. In some cases this limit only applies to theft but often it applies across the board. This is fine if none of your property is worth more than say, $2,500 (a common limit). So if your engagement ring is appraised at $3,000 you will only get $2,500 to replace it.
In the case of jewelry, especially engagement and wedding rings, scheduling them extends coverage for mysterious disappearance and theft, which otherwise would not be covered. Mysterious disappearance will extend coverage to situation where it is not clear what happened but the item is gone. In this way scheduling can not only insure you get an item’s value but, also broaden your coverage.
Ok so now you know why to schedule, next question; what do I schedule?
- cameras (video or still) and related equipment
- china and crystal
- coins (rare and current)
- golfer’s equipment
- musical instruments
- stamps (rare and current)
- works of fine art, including paintings, etchings, pictures and other bona fide works of art (such as oriental rugs, statuary, rare books, manuscripts and bric-a-brac) of rarity, historical value or artistic merit.
- Anything else that has high value and does not require a policy of its own (i.e. autos).
You may wish to schedule something like a glass bottle collection, not because each piece is highly valuable but as a whole the collection is worth more than the limit on the policy.
Price: unfortunately there is no straight forward answer to this question. Each insurance carrier (Morrill writes with 8) has a different formula for calculating the cost of scheduled items based on their listed value. This formula usually varies by property type. For example, jewelry may be priced at $1.25 per every $100 of coverage but furs only .45 per $100. While yet another carrier may charge $15.50 per every $1,000 for jewelry instead. This means you will need to contact your agent to get an accurate cost for any item you wish to add.
Alright you have convinced me! I have things that should be scheduled, now what?
Well now you need to get an appraisal and submit it to your agent. Appraisals should be no more than 5years old a bill of sale may also be used if the item is a recent purchase. Once you have provided your agent with this they will submit an endorsement to have the item listed on your policy. A few weeks later you will receive an updated policy were the item is listed on your schedule with it’s value and a brief description as well as the premium for its coverage.
Want more information or to get something on your policy?
Call your Morrill Agent today!