Common Sub-Limits On Homeowner's Insurance Contents Coverage
You probably know that there is a portion of your homeowner's insurance coverage that is specifically meant for the contents of your house. What you may not know is that there are sub-limits within this content coverage; the sub-limits apply to specific items in your house. Here are some of the items that typically have sub-limits slapped on them.
Cash
Insurance companies don't want you to store liquid cash in your home because it is too risky. In fact, each home insurance policy has a dollar limit to the amount of cash money you can recover if stolen or damaged in your house. What is worse, the limit is usually relatively low; it can be as low as $200. Imagine losing thousands of dollars in a burglary only to learn that you can only recover a few hundreds of dollars. It is best to avoid such scenarios by not keeping actual dollars in the house.
Jewelry
Jewelry is pretty expensive and often thief magnets due to the pieces' small sizes and high values. Standard home insurance premiums cannot cover the risk of jewelry theft adequately; home insurance carriers would easily go broke if they paid out such claims. That is why there is a sub-limit for jewelry in standard homeowner's insurance coverage. Therefore, if you own a good collection of expensive watches or gold or silver jewelry, you should buy additional coverage for them to be entitled to their replacement value.
Business Items
Home insurance coverage is meant to protect you from the losses of your personal items and not your business items. It is not uncommon for homeowner's insurance coverage to exclude losses related to business activities. Some home insurance carriers include coverage for business items, but they apply a sub-limit that is way lower than what you may have in your home for business purposes. Therefore, if you have a computer, printer, and file cabinets in your home office, you should get additional coverage for them because your standard home insurance may only cover them up to a few hundred dollars, which isn't enough.
Firearms
Lastly, if you own a few guns and you keep them at home, you should know that they also have a sub-limit in your home insurance coverage. The sub-limit may not cover all your losses if you own multiple guns or if you own an expensive gun. Again, you can cover all your guns by buying additional coverage for them.
Talk to an insurance agent, like those at Cypress Insurance, today about sub-limits and how you can ensure that your house's contents are properly protected by insurance.