Ensuring Adequate Coverage for Valuable Belongings in Illinois Homes

Homeowners insurance protects you from damage, disaster, and theft. What you may not know is that many policies place protection limits on valuable items based on their worth. Many homeowners believe that their jewelry, instruments, antiques, technology, or other valuable items are covered under their current policy when, in reality, their most valuable belongings have slipped through a coverage gap.

If you’re looking to buy or renew homeowners insurance for Illinois homes, you’ll want to ensure your valuable belongings are adequately covered, no matter what happens.

The Importance of Protecting Valuable Belongings

Any items in your home can be deemed valuable personal property, though insurance policies often make special considerations for certain items. Valuable personal property may be covered by theft protection but not flood damage. Insurers often set coverage limits on personal property items depending on their category.

These “sub-limits” lead many homeowners to assume they have more coverage than their policy will actually pay in the event of theft or damage. Even different types of property may be covered differently, as property used for business often has a different sub-limit than property used exclusively as a dwelling.

With inadequate coverage for specific item categories, you may be risking thousands or even hundreds of thousands of dollars by owning property that you aren’t adequately protecting from damage, even when the damage isn’t your fault.

Overview of Homeowners Insurance in Illinois

In Illinois, homeowners need to take special care to make sure their policy covers their valuable items by following these steps:

1. Assess Your Valuable Belongings

Professional appraisals are required to purchase dedicated coverage for individual items or collections. An official record of the item’s value, including its condition, is necessary for accurately assessing the coverage you need.

2. Inventorying High-Value Items

Once you can separate the items that need extra coverage, you will need to assess their condition and calculate the replacement cost or cash value accounting for depreciation. Your policy may only cover one.

3. Calculate Depreciation

Depreciation must factor into your final assessment. Schedule regular appraisals, especially on items that depreciate quickly, to make sure your insurer has updated information.

4. Consult with a Professional

Insurance professionals can help you create an inventory list, either manually or using new technology to manage and regularly update your inventory to compare to your current coverage limits.

Understanding Coverage Options

Insurance coverage for personal belongings is contingent on the policy’s terms and limits as laid out by the insurer. Standard homeowners insurance policies typically cover the value of normal belongings. But how can homeowners assess whether their items are covered?

Typical policies cover items that are fixtures of the house or low-value personal items such as AC systems, furniture, kitchen appliances, normal clothing, and sometimes electronics.

By contrast, here’s a list of some personal property items that often have a sub-limit enforced by the insurer:

• Cash, gold, or precious stones
• Silverware and silver trays
• Firearms
• Power tools
• Boats
• Trailers
• Paintings
• Trading cards
• Rugs
• Medications
• Cameras
• Instruments
• Furs

Coverage on these items will be limited unless the homeowner purchases additional policy riders or extends their limits in certain categories. It’s important to read your policy’s fine print to make sure your most valuable items are covered.

Scheduled Personal Property Coverage

Scheduled personal property coverage allows Illinois homeowners to extend their coverage for valuable belongings by increasing the coverage limit. Unscheduled personal property includes the items that your standard policy covers without explicit itemization.

To add scheduled personal property coverage, schedule a professional appraisal and speak with your agent about creating individual coverage limits for those items based on their value.

Enhancing Your Coverage Riders and Endorsements

Riders and endorsements amend your current policy to provide additional coverage such as valuable property protection. Your insurer will offer endorsements as payable options to enhance your policy.

Note that endorsements may change the premium on your homeowners insurance or add a separate deductible for the new coverage.

Floater Policies

Floater policies provide additional coverage for movable valuables (not fixtures). Typically, a floater policy only covers a single item such as a piece of art or jewelry. Floaters also require a professional appraisal and a reappraisal every 1-3 years.

Buying a floater has advantages, such as covering forms of loss not usually covered by homeowners policies, such as accidental loss.

Preventing Underinsurance

To prevent your home and belongings from being underinsured, homeowners should conduct regular policy reviews, including professional annual reviews.

Numerous life changes, such as depreciation or adding home offices, could change your coverage needs or requirements. Work with your insurance agent to stay updated on your coverage requirements, including increasing your policy limits where applicable.

Protect Your Valuables with Pro Insurance Group Personalized Insurance Solutions

At Pro Insurance Group, we offer policies customized for Illinois homeowners. Contact our team for a consultation and an Illinois homeowners insurance quote. Our insurance experts will help you address coverage gaps and make sure your valuable possessions never go underinsured.