Personal property is a standard inclusion in homeowners insurance policies, safeguarding items such as furniture and clothing by reimbursing up to a specified limit in cases of theft or damage caused by covered perils. Yet, for valuable possessions like jewelry, fine art, or musical instruments, it’s often necessary to supplement your policy with a scheduled personal property endorsement to ensure comprehensive coverage up to their full appraised value.

What is scheduled personal property coverage?

Scheduled personal property coverage is an optional addition to home insurance policies, allowing policyholders to enhance protection for certain items like jewelry, watches, and artwork. These items often have limited coverage under standard personal property provisions included in home insurance. By opting for scheduled personal property coverage, policyholders can increase policy limits, providing greater financial security in cases of theft or damage covered by the policy.

A scheduled personal property endorsement enables policyholders to individually list high-value items with their respective appraised values. Typically, this requires providing an appraisal or proof of value for each item. Alternatively, some insurers offer packages with expanded blanket coverage that bypasses the need for individual appraisals. For instance, if basic coverage includes up to $1,000 for jewelry, opting for this endorsement could extend coverage to $5,000 or more for all jewelry items. It’s important to note that both methods of expanding coverage for personal property are likely to result in increased premiums.

What does scheduled personal property cover?

While the specifics can vary based on the insurance company and policy type, most homeowners insurance policies impose limits on certain personal items. For instance, if a high-value item is stolen, coverage might be capped at $500 or $1,000, with the policyholder responsible for paying the deductible.

Typically, home policies cover possessions up to the specified limit while they are on the insured property (“on-premises”). Coverage for items lost or damaged “off-premises” is often lower. However, scheduling personal property ensures full coverage for its appraised value both on- and off-premises.

Scheduled personal property coverage usually includes:

  • Coverage for accidental loss or mysterious disappearance.
  • Protection against accidental physical damage.
  • Often, no deductible for scheduled personal property claims (unless a higher deductible option is chosen by the policyholder).

How scheduled personal property coverage works

Here’s an example of how scheduled personal property coverage could be beneficial: Let’s say you misplace your engagement ring. Under a standard homeowners policy, you likely wouldn’t have sufficient coverage. However, if the ring was scheduled, you might be able to recover its full cost without having to pay a deductible. Scheduled personal property coverage typically includes protection on an open perils basis, meaning it covers all types of losses unless specifically excluded in the policy documents.

Types of valuable items often covered by scheduled personal property include:

  • Antiques
  • Bicycles
  • Cameras
  • Certain electronics (such as laptops and media equipment)
  • Collections (like cards, coins, and stamps)
  • Fine art
  • Firearms
  • Furs
  • Jewelry
  • Medical devices
  • Musical instruments
  • Rugs and tapestries
  • Silverware or goldware
  • Sporting equipment

It’s generally advisable to consider scheduling high-value items that exceed the limits of a standard homeowners policy. For instance, if you were to lose or damage a cherished golf club at the golf course, standard homeowners insurance typically wouldn’t cover it. Scheduling the golf club, however, could provide the necessary coverage. Ultimately, it’s a decision to be made in consultation with your insurer, weighing the value and sentimental importance of items against the cost and coverage options available.

Do I need a scheduled personal property endorsement?

If you possess valuable items such as a high-end bicycle, expensive jewelry, or family heirloom antiques, it may be wise to consider investing in scheduled personal property coverage. Review the sublimits specified for these items in your homeowners insurance policy (and don’t hesitate to contact your agent for assistance) to determine if any of these valuables are appraised above the standard coverage limits.

Example of insurance sublimits

For example, if your policy states a $1,500 limit for jewelry coverage but your collection is valued at $15,000, it’s advisable to consider scheduling the higher-value pieces—or all of them—to ensure broader coverage.

This can be achieved through a scheduled personal property endorsement, or you might opt for blanket insurance coverage with a higher limit. For instance, increasing jewelry coverage from the standard sublimit of $1,500 to $3,000 under a blanket policy could suffice. Blanket coverage might offer a more economical solution compared to scheduling each individual item, but it’s essential to verify with your insurer if your desired items are eligible for blanket coverage.

Keep in mind, if you decide against scheduling or blanket coverage, claims will likely only be covered for specified perils listed in your homeowners policy. Additionally, any claim will be subject to your policy’s deductible, impacting the amount reimbursed for replacing or repairing the item.