Your electronics are important investments. You use them for work, play, entertainment, and to communicate with your friends and family. When you purchase your homeowners insurance, you want to make sure that your policy sufficiently covers all of your electronics. Understanding how your policy is written and ensuring that all of your electronics are included is extremely important. Before choosing a policy, talk to your insurance agent to know what is covered and what is not.
Types of Policies
Homeowners policies can be purchased in two ways. An open policy is fairly generalized and will cover all types of perils except for a few exclusions that are listed in the policy. A named-peril policy identifies the types of perils that are covered by the policy. With a named policy, your electronics will be covered if they are damaged by a peril listed in the policy. If the damage is the result of an unnamed peril, they will not be covered by your policy. An open policy offers more coverage, but there may still be times when your coverage may not be what you expect it to be.
Actual Value vs. Replacement Value
Most insurance policies cover the actual value of an item instead of its replacement value. A good example is a nice camera. When you first purchased it, you may have paid $500. Today, the same brand and type of camera can be purchased for about $600. If your camera’s actual value is $300, you won’t get enough money to buy the same brand and model of camera that you lost. While you may be able to buy sufficient coverage, you may need to talk to your agent about purchasing a special type of policy that includes replacement values.
One of the best ways to ensure that all of your electronics, appliances, and other expensive items are adequately covered by your homeowners insurance policy is to do a thorough inventory. A video inventory shows items in real-time so that the insurance agent can see their actual condition. Include a visual of the serial and model number so that it will be easy for your agent to look up. Providing this detailed information allows your insurance agent to calculate the approximate amount of your loss if an accident does occur.
Most homeowners insurance policies put coverage limits on electronics and other valuables. Talk to your insurance agent to find out what can be done so that your items, especially all of your electronics, are sufficiently covered. They will be able to go over your existing policy and find out what changes need to be made so that you have all of the insurance coverage you need.
Finding the right homeowners insurance to cover both your home and your electronics may be a challenge, but you do have options. Contact us at Phocus Insurance Services if you have questions about your insurance coverage. Discuss your options with our agents so that you understand what is covered and what is not.
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