What Does the Price of Gold Have to Do With My Homeowner’s Insurance?

A common question that I am often asked is: Do I have to document everything that I own in order for it to be covered under my homeowner’s policy? The simple answer is no. Your company will believe you if you say that you had two pairs of blue jeans and a color TV that was damaged as a result of …Lightning; because, everybody has at least two pairs of jeans and a color TV, and if you don’t have it at policy inception you will most likely buy it during the policy period, so that it would be ridiculous to make everyone report each and every personal item bought and owned.
However there are some items that are covered, but the limit is restricted.
* Money, bank notes, bullion, gold, silver coins, etcetera. Have a $200.00 limit
* Securities, accounts, deeds, letter of credit, notes tickets, stamps, etcetera have a $1000.00 limit
* Watercraft is subject to a $1000.00 limit. If you have a REAL boat (not a rowboat) buy a watercraft policy.
* Any trailer (except one used with watercraft) is subject to a $1000.00 limit
* Firearms have a $2000.00 limit
* Silverware and gold ware are limited to $2500.00
* Jewelry, watches, furs, artwork, and precious stones are limited to $1,000.00
If you have any of the items listed and their value exceeds the available limit on the policy it will need to be scheduled; meaning that we specifically list it and its value on the policy and pay and additional premium for it. Now, lets assume that you have a diamond ring that is worth $3000.00. You go ahead and get it appraised for the $3000.00 and bring the appraisal to your agent. Your insurance agent will add it to your policy for an additional premium. How much? Maybe $30.00/year. It’s a great deal.
Now lets assume that the diamond ring was appraised for $3000.00 ten years ago. The price of gold has more than doubled in the last ten years, and the price of silver has gone up at least five times in that same period. I would be willing to be that the ring is now worth more than $3000.00.
I have a friend that scheduled her jewelry on her homeowner’s policy – her and her husband’s wedding bands, and one other gold ring – some years ago; they were stolen when her home was broken into. She was only able to replace one of the three rings with the insurance payment. The appraisal was far out of date and the value of the jewelry had increased dramatically.
If you have any valuable items make certain that they are properly insured and that they are insured to value.


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