You might think that all of your personal belongings are fully covered when you take out a homeowners or renters insurance policy, but you’d most likely be wrong. Most insurance companies have “Special Limits” included on their policies that place a cap on the amount of reimbursement for certain items.
For example, someone breaks into your home and steals $7,000 in cash, a $10,000 diamond ring along with a silverware set valued at $8,000. These are all typical special limit items and without added “scheduled item” or “jewelry rider” endorsements will severely reduce reimbursement from the insurer.
The insured might be relieved to know they are insured for the losses but be really surprised that the reimbursement is not for the full $25,000 loss, but only for $6,000 because of the limits on cash, jewelry and silverware.
Common Special Limit Items To be Aware Of
- Coins and currency, bullion, bank notes, medals and scrip. It also includes stored value cards for which there exists no traceable connection to you or for which no account is established in your name.
- Securities, checks, cashier’s checks, traveler’s checks, money orders and other negotiable instruments, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, stamps at face value, and tickets.
- Jewelry, including loose precious and semi-precious stones; watches; and furs.
- Watercraft, of all types, including their trailers, furnishings, equipment
- Business Property. Any property on the residence premises used or intended for use in a business or for any property away from the residence premises used or intended for use in a business.
- Business computers and the peripheral device(s), media and purchased software used with them.
- Firearms. Loss by theft, misplacing or losing of firearms and related equipment.
- Silverware and Goldware.
- Coin, Currency and Stamp Collections. Numismatic and philatelic property for which the age, history, scarcity and condition contribute substantially to their value. Numismatic property includes coins and paper currency. Philatelic property includes postage stamps, postmarks, post cards and stamped envelopes.
- Memorabilia, souvenirs, and collector’s items such as trading cards, comic books, autographed merchandise and similar articles for which the age, history, scarcity and condition contribute substantially to their value.
Not All Policies Have The Same Special Limits
There are a wide range of limit caps for specific items among insurance companies. Some insurers may have a $200 cap on money and cash while others may reimburse $1,000. This same wide limit range can apply to all of the special limit items mentioned previously.
That’s why it’s important to check your current home or renters policy for your special limits coverage if you own any items that have a capped reimbursement. After reviewing you may decide to either increase the limit for that specific item or shop for an entirely new policy that fits your situation better and protects you more adequately.
Yes, your $10,000 engagement ring is most likely covered on your home policy, but not nearly for the amount that it’s worth.
If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.