Post #76658 by SugarCaddyDaddy on Wed, Feb 18, 2004 11:01 AM

Each insurance company is different.

First review your policy with your agent to determine whether or not there are any exclusions on your existing Primary home policy covering "valuable" items where a price cannot be immediately determined by any claims adjuster (ie: your house goes up in flames. A price for your Sony 60" big screen can be obtained with a phone call but that $1500+ Moai tiki mosaic artwork above your Witco bar that held your complete set of Steve Crane mugs cannot.)

Your "valuable" tiki items (I'm talking high dollar pieces, not your $10/$15 mugs) may fall into a special "collectibles" category from your insurance agency. In which case, a "rider" would need to be written. (A rider provides additional coverage for something specifically not covered by your Primary policy. The rider is added to the Primary policy and the policyholder pays an extra amount to cover the rider.) Most likely (as I have done) a rider is most likely needed.

Whether or not you have to add a rider, in all cases you really should take a picture or even videotape your belongings. Keep a copy for yourself in a safe place away from your home (like a safety deposit box at your bank) and send one to your agent (either hand deliver or send in the mail by return receipt to prove they "accepted" it.)

If a rider is written, BE SPECIFIC as to what is covered. Write down specifically what you want covered along with it's current value at the time the policy/rider is written. Again I will use the Moai Tiki mosaic picture as an example: Let's say you do have a policy/rider in place from 5 years ago and the Moai mosaic picture was listed specifically at a $400 value. You cannot replace that mosaic easily, but when they do come up for sale NOW (yes, usually on ebay) they have been no less that $1200 to $1400+ in price. Ok, so now an earthquake hits and your picture tumbles and shatters to the ground. You call your insurance agent to make a claim for all your items that broke, including that mosaic, and you get paid. Can you guess what you'll get paid? Noooooo, not $1400 (even though you have the latest ebay auction proof that some other picture sold for that), you'll get $400 (less your deductible on your claim), because that is what you specifically said it was worth at the time the policy was written and that is what you have been paying to have it insured for. So be sure to update your policy/rider yearly if necessary. Although, if your insurance company requires that an appraiser must submit the value, you have to know that you, again, have to repay the appraiser to come out to reevaluate your items. The more detail you can supply to your insurance company for value, the better for you. Just remember that you will be paying that premium for those prize possessions.

Talk to your agent. That is what they are there for. Part of that insurance money you pay for every month (or quarterly) is for paying them to be at your disposal for questions or concerns.

Just my 2 (insured) coconuts worth.

Enter The SoCal Hoity Toity Schedule

[ Edited by: SugarCaddyDaddy on 2004-02-18 11:06 ]