Does My Homeowners Policy Cover Jewelry?

When buying homeowners insurance you face a long list of choices as to what type of policy best applies to the particular kind of home you have, whether a single-family dwelling, a mobile or manufactured home, a condo, townhouse, etc. You'll also have a long list of options from which to choose within each different homeowners insurance policy. In order to become aware of what types of coverage are available to best fit your own specific needs and how to understand the different perils, exclusions and policy limitations associated with each, it makes sense to spend some time consulting with your local independent insurance agent, who is likely an expert in this area.

Policy Exclusions and Limitations

Homeowners insurance generally covers the repair or replacement of your home for loss from a list of covered perils such as fire, storm damage, civil riots, vandalism, etc., up to a certain dollar amount spelled out in the policy. Your policy will also provide protection against the loss, damage or destruction of covered personal possessions, which includes your furniture, equipment, appliances, clothing and more. Possessions are typically covered to a total amount that's limited to a stated percentage of your total policy coverage amount. This could be 10%, 50% or something in between, depending on your specific policy.

Most policies also place specific loss limits on certain types of items. A policy may, for example, only provide for your jewelry if it becomes damaged or stolen. It may also exclude a claim for jewelry that's accidentally lost, which may be considered negligence.

If you own jewelry that exceeds the value of your policy coverage limits you have the option to obtain an endorsement (or rider) to increase this limit to something more appropriate. This will, naturally, cause your premium to increase. Another option is to have your valuable items "scheduled," which calls for each piece being appraised and then covered for the full amount if destroyed, stolen or lost. There's also no deductible due in a claim for a scheduled item.

Other items typically limited for maximum claim amounts in most homeowners insurance policies include:

• Gold and silver, including silver flatware
• Guns
• Stamps
• Coins
• Furs

As with jewelry, however, these items may be covered for greater amounts by obtaining a rider or by scheduling them. Scheduled items should be reappraised every 3-5 years to update their values.     

What is Business Insurance?

Business insurance, as with all insurance including health, life, auto and others, is a sharing of risk against future potential loss. Insurance involves a contract between an insurer and an insured in which the insurer promises to indemnify and financially reimburse the insured in the event of a covered loss. This promise is made in exchange for a premium payment proportionate to the perceived amount of risk involved.

Why Business Insurance is Important

Operating a business typically involves significant investment and, depending on the type of business, may involve significant financial risk. Good business insurance coverage is one way you can help minimize risks you may face. While the law generally doesn't require that you, as a business owner obtain business insurance, in North Carolina if you have three or more employees you're legally required to carry worker's compensation insurance. Any vehicles used as part of your business operations must also be insured, with commercial vehicle coverage recommended.

Liability - A Major Concern

There are many types of business insurance coverage that, although perhaps not required by law, are important for you to have in order to protect yourself against property damage, liability lawsuits and other claims. Here are some of the more common types of coverage available:

• Key Person Insurance – this is a policy that pays compensation for potential financial losses arising from the death or long-term incapacitation of the covered individual, considered key to ongoing profitable business operations.
• General Liability Insurance – also called commercial liability insurance, this protects against financial loss as a result of liability claims for injuries or damages to others by you or your employees. This includes bodily injuries caused by negligence, and accidents stemming from personnel or other causes. It also covers personal injury claims such as libel and slander.
• Product Liability Insurance – this coverage protects companies that manufacture, distribute or retail products in the event that a product is deemed defective or unsafe and causes damages, bodily harm or injury.
• Commercial Property Insurance – this coverage is protection against loss from property damages resulting from perils such as fire, severe storms, vandalism, etc. These policies may be peril-specific, covering only perils listed, or all-risk, covering all perils except those specifically excluded.

If you operate a home-based business you will likely need separate insurance for protection against losses not covered by your homeowner's policy. This may include professional and general liability coverage. 

Types of Homeowners Insurance: Making the Right Choice

Homeowners insurance in the Greensboro and High Point areas can cover a wide range of homeowner needs. In the Piedmont Triad you'll find just about every type of residence – from large estates to single room apartments, mobile homes and single-family dwellings to co-ops and condominiums – and each of these can require a different type of homeowners insurance. Making the right choice regarding which type is best for you will depend on your specific needs, often best determined by consulting with your local, independent insurance agent.

Protecting What May Be Your Most Valuable Asset

While homeowners insurance policies are fairly standard throughout the U.S., different states often have unique versions of different coverages. North Carolina, for example, has a series of HE policies, which stands for Home Enhancement Coverage and are often only sold through independent agencies. North Carolina offers some of the lowest-priced homeowners insurance of any state.

If you live in the home you're insuring you would obviously need a different type of protection than if you're insuring a home you own but rent out. You'd still want good coverage against damage occurring to the home by way of a fire or a severe storm or if someone gets injured and holds you responsible for liability. As a rental, however, you wouldn't necessarily need coverage for personal possessions (unless the home was being rented as furnished).

If you own an apartment or condo unit you need coverage for your unit and possessions, but adjoining or common areas are likely covered in a separate policy. Manufactured or mobile homes have coverage specific to them as would, for example, a houseboat.

Insurance Policy Specifics

The most common and historically most popular homeowners policy is what's called an HO-3. This coverage protects your home from all perils (usually 16) except those specifically excluded. Replacement of your home and/or possessions qualifying as a covered loss is handled in one of three ways, depending on the type of coverage you choose:

1. Actual Cash Value – Replacement of your home and/or possessions minus a depreciation deduction

2. Replacement Cost – Replacement of your home and/or possessions without a depreciation deduction

3. Guaranteed (or Extended) Replacement Cost – Guaranteed replacement cost to rebuild your home to its pre-loss condition even if the amount required exceeds policy limits (up to a stated percentage).

Other popular policies sold here in N.C. include the HE-7 and HE-21, whose features can be viewed here.