Scheduled personal property coverage is a type of insurance that covers specific items, sometimes beyond original policy limits. Scheduled personal property coverage is added to a homeowners insurance policy and is commonly used to insure jewelry, artworks, and other valuables. Here’s a closer look at how scheduled personal property coverage works and when you may need it.
What is scheduled personal property?
Scheduled personal property is a term for listed valuable items which are covered in addition to your regular homeowners insurance. Most homeowners policies include coverage for personal property, but that coverage is typically limited to a certain dollar amount, and some item categories may be excluded.
Like other additions to an insurance policy, the industry term for scheduled personal property coverage is an endorsement. Endorsements give you additional protection or features with an existing insurance policy.
Adding scheduled personal property coverage ensures that you are financially covered in case of loss or damage. Suppose you have any hobbies requiring expensive equipment, valuable collections, or keep any other extremely high-priced items at home. In that case, scheduled personal property insurance could be a wise addition to your insurance coverage.
What types of valuables are typically covered by scheduled personal property?
Your homeowners insurance often includes coverage for the physical structure, other structures on the property, personal property, loss of property use, personal liability, and medical coverage. Here’s a list of some items commonly added to an insurance policy as scheduled personal property:
- Stamp, coin, and card collections
- Musical instruments
- Sporting equipment (e.g., golf clubs and bicycles)
- Rugs and tapestries
- Medical devices
You may be required to provide an appraisal to insure certain items as scheduled personal property.
Difference between scheduled and unscheduled coverage
Unscheduled coverage is the general property insurance included in your homeowners policy. Unscheduled property does not require being listed separately, as the value is too low to cover individually.
For example, your homeowners insurance may have $50,000 of personal property coverage. If your home and its contents are destroyed in a covered event, that $50,000 would pay for replacing general items like your clothing, kitchenware, and furniture. However, as noted above, homeowners insurance may limit coverage. In addition to a dollar limit, your policy may expressly exclude some items.
Scheduled coverage gets its name from the schedule, or list, of personal property. Unscheduled coverage doesn’t require making a list of any home contents, though that may be a good idea in the event of a future claim. Scheduled coverage does require specific listings.
If you’re not sure if an item is worth adding as scheduled property, consider reaching out to a trusted insurance agent or asking your insurance company if the article would be covered, and to find out the potential costs of adding it as scheduled personal property.
Benefits of scheduled personal property coverage
When you use scheduled personal property coverage, you don’t have to worry about the value of a painting hanging on your wall, heirloom jewelry in your dresser, or other valuables worth thousands of dollars. If something happens where that property is lost, stolen, or destroyed, you can rest easy knowing that you will be made financially whole.
Some homeowners insurance limits payouts for specific categories, perhaps around $1,500 to $2,500 depending on the policy. Your coverage goes beyond those limits when you add on a scheduled personal property coverage endorsement.
While you may never recover precious items lost in a fire, severe weather, accident, or theft, you can come out the other side with a check for the value of what you lost.
Who needs scheduled personal property coverage?
Anyone who owns expensive items or collections worth thousands of dollars should consider personal property coverage. You probably don’t need itemized coverage for your wardrobe or old DVD collection. A prized artwork, engagement ring, or expensive collection should likely be added to your insurance on their own, however.
Purchasing a scheduled personal property policy in addition to your homeowners insurance can be a wise investment. You can work with your insurer to pick a deductible and coverage that’s right for your finances and your personal needs.
When you have scheduled personal property coverage in place, you don’t have to worry about the cost when something goes wrong. You can relax. After all, when you have sufficient insurance, you’re covered for the unexpected.