Homeowner policies do not cover everything. Many personal items, which are covered, are limited to a specific amount. For example, most homeowner policies limit coverage for theft of jewelry to $500 or $1,000. If you have an engagement ring worth more than this limit, you must “schedule” that item on your homeowner policy.
Scheduling simply means the specific item is listed with a description and current value. If it is stolen or destroyed by a covered loss, the company will pay the lesser of the cost to repair or replace the item up to the scheduled limit.
Examples of the most commonly scheduled items are jewelry, silverware, guns, antiques and fine arts. The limits given for these items will vary by carrier, but scheduling will always provide another level of security to the things you value most in your home.
Scheduling items provides three advantages:
- It provides an additional amount of insurance – Contents coverage is a percentage of the insurance on the home. Usually, this is 70% to 75% of the dwelling. If a total loss occurred,the contents limit could be paid (with verification) and the scheduled items would be paid in addition to the contents limit.
- It usually does not have any deductible – All homeowner policies have a deductible. The most common amount is $1,000. If a $1,500 gold chain were stolen, only $500
would be paid if it were not scheduled. ($1,500 less the $1,000 deductible) However, if were scheduled, the entire $1,500 would be paid. (Some companies allow for deductibles on scheduled items to lower the premium.)
- The coverage is usually broader – Scheduling an item usually provides the broader “risks of loss” coverage which states that coverage applies unless excluded in the policy. Unscheduled items are most often covered with “Named Perils” coverage, which lists the perils insured against. (Like Fire, lighting, wind.)
Be careful, scheduling does not guarantee you will receive the scheduled amount. If a diamond ring were scheduled for $5,000 and a similar size, cut, clarity and color diamond could be purchased for a lesser amount; the ring would be replaced for that lesser amount, rather than a check being issued for $5,000.amond could be purchased for a lesser amount; the ring would be replaced for that lesser amount, rather than a check being issued for $5,000.