Stuff. We all have it and most of it, while perhaps useful, is not especially valuable or special.
But maybe you have something – a collection, an heirloom, a piece of high-end equipment – that is truly valuable. This treasured piece typically needs a little extra protection to keep it safe.
As Valentine’s Day approaches, you may be thinking about the people you love the most. While you are finding ways to show those people you love them, it’s also worth giving some thought to the item you love the most – and how to properly protect and insure it.
Here is a four-step guide to securing a long-term “relationship” with that extra special thing in your life.
1. Know If You Have Something Special
One of your possessions may stand out. Maybe it’s a piece of jewellery, a painting or a high-end bike that you saved up for. Or it could be collectibles (e.g., stamps, coins, sports memorabilia), designer accessories, wine collections, furs, high-value electronics or antiques. These items may not only hold emotional meaning, but they may also have significant financial value.
Many such valuables are not fully covered under a standard home insurance policy. They may have policy limits below what they’re worth or are only covered for certain perils (fire and theft) and not others (accidental damage or a “mysterious disappearance”).
If you own something special, it needs special insurance protection – typically referred to as “scheduling” or adding it as an endorsement to your policy. This will insure the item for an agreed upon value and cover it against a broad range of perils.
Speak with your insurance professional to determine whether that extra-special item in your life needs to be scheduled.
2. Know Its Story
Every treasured item has a story – where it came from, why it matters and what it’s worth. Once you’ve identified an item that needs to be scheduled, the next step is to document its value.
Documentation may start with a professional appraisal, especially if the item is old. Be sure to find an appraiser with the right knowledge, specialty and certification to place a dollar value on your treasured item.
Also, keep any other documents/information you may have, including the original receipt, the serial number and the certificate of authenticity. Also, take photos of the item and its documentation. Store the physical copies in a fireproof safe and keep the digital copies in cloud storage.
This documentation will help your insurer schedule the item and help protect you should you ever have to file a claim. Your insurance broker may ask you for a copy of the documentation.
3. Keep It Safe
The best way to prepare for an insurance claim is to reduce the likelihood of ever needing one. This means physically securing your valuable item as much as possible.
Steps to reduce the risk of theft or damage include:
Establish home security, including an alarm system, deadbolt door locks and security cameras, and keep the valuable item out of plain sight.
For smaller items, like a coin collection, consider storing them in a bolted-down safe.
Hang high-value art out of direct sunlight and keep collectibles in a climate-controlled environment.
Be discreet about who knows about the valuables in your home; do not post about them on social media.
4. Give It Ongoing Attention
Any long-term relationship requires ongoing care and attention. With your special item, the same principle applies.
Conduct regular maintenance. If your special item is jewellery, have it professionally cleaned and inspected annually. Maintain art and collectibles as professionals recommend.
Your insurance also needs ongoing attention. Review your policy once a year to ensure your coverage continues to meet your needs. If a new, highly valuable item enters your life, tell your insurer right away so it can be added to your coverage.
If something in your home is special enough to worry about, it’s special enough to be insured properly. Initiate the conversation with your insurance professional. Protecting your most valuable item isn’t a matter of the heart; it’s a matter of being practical.
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