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Limited Coverage For Certain Property
The typical homeowners policy offers plenty of coverage
for personal property, usually offering a limit equal to half of the amount
reserved for the residence (ex. Your home is covered for $150,000, so your contents
and furnishings are covered for $75,000). While this is generous coverage, it
doesn't extend to all types of property for all causes of loss. Certain types
of property, because of its high value and liquidity, is far more vulnerable
to loss...either easily destroyed, easily stolen or both. For instance, an insurer
protects your sofa right along with your fur coat for the same basic premium,
but the two types of property don't represent the same chance loss. Recognizing
this fact, insurers put more restrictions on the coverage provided by a basic
policy.
Theft Coverage Limitations
When property is lost due to theft, coverage under a standard
homeowner policy is severely limited (generally between $1,000 - $2,500) for
the following types of property:
- jewelry, watches, furs, and gemstones
- dinnerware, serving sets, trophies and
similar property made of or plated with silver, gold, platinum or pewter
- for firearms, accessories and related
property
Other Coverage Limitations
Several categories of property are subject to very modest
limits (generally between $200 - $2,500) of coverage, regardless of the cause
of loss (theft, fire, accidental breakage, etc). Specifically:
- money, bank notes, coins, medals, gold,
silver and platinum (other than jewelry or dinnerware)
- securities, accounts, deeds, tickets,
stamps, manuscripts, passports and similar property
- watercraft and related property including
their trailers
- trailers not used with watercraft
- business property located in your residence
- business property located away from your
residence
- certain types of electronic property
(CD players, VCRs, TVs, radios, computers )and related accessories) which
is lost or damaged while in a car or is located away from your home and used
for business.
Please refer to part 2 on how to get more coverage for
these classes of personal property.
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