What is scheduled personal property and why is it important



What is Scheduled Personal Property?

While personal property coverage is an important part of your homeowners insurance, it's a good idea to take a close look at your policy to understand what this coverage can help protect. You may find that an additional coverage, known as scheduled personal property, can help provide greater protection for some of your most valued belongings.

To properly protect your belongings, you should understand a little more about the differences between the two types of coverages.

Is Standard Personal Property Insurance Enough?

While a standard homeowners policy typically provides coverage for your personal property, it usually sets a dollar limit on how much it'll pay for certain categories of valuables like jewelry (sometimes there's even a per-item limit).

For instance, there may be a $1,500 sub-limit on what your insurance will pay for jewelry after a loss — even though your overall personal property limit may cap out somewhere between 50 percent and 70 percent of the amount of insurance on your home (based on Insurance Information Institute (III) estimates).

So, if you were to file a claim for a piece of jewelry worth $500, you'd probably be in good shape. But if your loss is for a piece of jewelry valued at $2,500, you would likely only be covered up to the $1,500 sub-limit (assuming, of course, that it's a loss covered by your policy).

Scheduled Personal Property Can Help

That's where scheduled personal property coverage comes in. It's an optional add-on to your homeowners insurance policy that increases the limits on specific high-value items for more protection.

Here are some belongings you might want to consider for scheduled personal property coverage:

• Jewelry and furs
• Art and antiques
• Stamp or coin collections
• Firearms
• Musical instruments
• Expensive cameras

To get the items scheduled, you typically need to provide your insurance company with a recent receipt or a professional appraisal.

The Benefits of Scheduling Valuables

Of course, scheduling your belongings will likely cost you more in premiums. But the III notes that scheduled property coverage may come with additional benefits:

• Broader protection. Scheduled personal property may be covered for additional risks, including accidental loss (like dropping your wedding ring down the drain), which typically isn't something covered by a standard homeowners policy.
• No deductible. When you have a claim on an item that you have scheduled, you're usually not required to pay a deductible. That may not be the case for other belongings that fall under the protection of personal property coverage on your standard policy.

Because the value of certain items like antiques or collectibles can go up and down over time, the III suggests getting regular appraisals done to make sure you're purchasing the protection for your valuables — coverage that's not too high, not too low — that you actually need.

What you need to know about Automobile Recalls

In 2015, automakers issued recalls for more than 51 million vehicles in nearly 900 campaigns according to the National Highway Traffic Safety Administration (NHTSA). Many recalls are related to a known safety issue, so please take recall notices seriously and take your car in for the necessary service. A minor fix could make a major difference in safety and performance of your car.

How do I know if car is subject to a recall?

The NHTSA maintains a current database of auto recalls. To learn if your vehicle has been recalled, click here and simply enter the vehicle’s year, make and model in the selection of boxes. You can also search using your 17-digit Vehicle Information Number (VIN). VIN plates are attached to the dashboard on the driver’s side of the vehicle and visible through the windshield. It is also printed on a sticker inside of the driver’s door or doorframe.

What should I do if I receive a recall notice?

In the event of a recall, vehicle owners will receive a notice in the mail from the vehicle manufacturer or the dealer where the vehicle was purchased. Oftentimes the official notice comes a few weeks or months after the recall was issued, so that the manufacturer has time to notify its dealers of recall procedures and ensure the availability of repair parts. The notice will provide you with recall specifics and instructions to schedule your vehicle for service. Typically you will need to take your car to a dealership and there is no charge for the recall service.

Save Repair Receipts

If you have a possible defect repaired, but your vehicle hasn’t been recalled, be sure to save your receipt and other service documents. If the vehicle is later recalled for that specific problem, you may be eligible for a reimbursement for repair expenses from the automaker.

Learn More about Recalls

You can learn more about the recall process and your rights and responsibilities as a vehicle owner by viewing this NHTSA publication.

Remember, if your vehicle is recalled, have the necessary repairs performed as quickly as possible. Failure to act could leave you and others unnecessarily vulnerable to a potential safety risk. Please contact me anytime with questions you may have regarding your coverage to ensure what matters to you is protected.

Why state minimum auto insurance is not enough

The state minimum auto insurance limits in AZ are 15/30/10. That is $15,000 in coverage per person for injuries you cause to others / $30,000 in total coverage for injuries you cause to others per accident / $10,000 in property coverage for damage you cause to others car or property.

First lets talk about the $15,000 / $30,000 coverage. If you are at fault in an accident and injure the other party, the max your insurance will pay out for those injuries to other is $15,000 per person or $30,000 for all injured persons in that accident. These injuries are both short term and long term and can include ambulance costs (min $1000), visit to an emergency room, immediate treatment, therapy, rehabilitation, physiotherapy, lost wages and other treatments. You are personally responsible for any costs above these amounts. Did you know that the difference between $15,000/$30,000 and $25,000/$50,000 averages only 10% of your liability costs for 40% more coverage?

The average claim in 2013 for bodily injury in a car accident was $15,443

The average property claim in 2013 was $3231

REMEMBER, THESE ARE AVERAGE 2013 NUMBERS, NOT 2017 NUMBERS

Now, lets talk about property damage. State minimum in AZ is $10,000 per accident. With all the new advancements in automobile technology, like sensors in the bumpers, xenon headlights, and crash avoidance technology in vehicles, $10,000 might not even cover a bumper and fender on one car, let alone a multiple car accident. Yes, you are then personally responsible for any amount over the $10,000. Did you know that the difference between $10,000 in coverage and $25,000 in coverage is less that $3.00 every 6 months?

Are drones covered under most personal insurance policies?

Under most homeowners/renters/condo policies, drones are protected from the following perils:

• fire
• theft
• lightning,
• smoke
• wind and hail
• explosion
• freezing of plumbing
• falling objects

However, they MUST be for personal use not business use. Check with your own insurance agent to verify that they are covered on your personal policy.

February is "National Insure Your Love Month"

The Gift Of Life Insurance

Flowers and candy are an easy way to say “I love you,” but sometimes it’s the less romantic gifts that let your loved ones know they come first. Life insurance is a great example: it’s a gift you purchase exclusively for those you love.

If your family depends on your income, if you have outstanding debts, or if you simply want your final expenses covered, consider life insurance.

February is National Insure Your Love Month. While a shiny new life insurance policy won’t replace a candlelit dinner, it can help provide your loved ones peace of mind today and financial protection for the future.