The Second Day of Insurance Christmas

Farmington New Mexico Homeowners Insurance“On the second day of Christmas, my true love gave to me… two turtle doves and a partridge in a pear tree”.
I realize that this song from an point of view can be a bit twisted, but I am about to twist it a bit more.  I hope you like this version of the song and have a bit of patience with my take on it.  First of all, two turtle doves are supposed to mean a strong bond and eternal love – that’s why it’s a gift from your true love.  However I wouldn’t recommend that you give your wife or girlfriend a pair of turtle doves this Christmas because she won’t know what to do with them.  It’s not nearly as romantic as it was a couple of hundred years ago.  I would recommend a set of earrings as a Christmas gift or maybe an expensive Nativity set, if she’s into that type of thing; but something ornamental and not alive. 
What in the world does this have to do with insurance?  Well, it’s screaming:  Pair or set clause.  I know what you’re saying:  pair or set … what? I repeat, pair or set clause.  Here is a quick definition of the clause: 
It is a provision that is found in policies that deals with the loss of part of a set or one of a pair – such as the loss of one earring or the loss of the baby Jesus in a Nativity set – in the case of such a loss the insurance company has the choice to either repair or replace any part of the pair or set to restore it to its original value prior to the loss; or it may also choose to pay the difference between the value of the set or pair before the loss and after the loss.
Now there are some restrictions to this clause, and the first one is that the item must be scheduled.  What do I mean by scheduled?  It means that the item must be specifically listed on the insurance policy and given a value and a premium.  You specifically pay a separate insurance premium for this particular item; this will usually require a receipt at the time of purchase or a written valuation by an appraiser so that the insurance company knows beforehand how much it’s worth and therefore how much they will have to pay in the event of a loss.  It’s not hard to do but in the event that there is a “loss” filed against just a part of the item the pair or set clause comes into effect. 
Call your insurance agent if you have a valuable pair or set that needs to be scheduled this Christmas.


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