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Not Just the Wealthy Need Insurance for Their Toys

By January 29, 2016 No Comments
Golf clubs

Not Just the Wealthy Need Insurance for Their Toys

Written by: Twin City Group

You don’t have to be a hedge fund manager or even a Fortune 500 CEO to accumulate possessions that are considered to be high-value by most, and over-priced toys by others.

If we were to survey most middle-class homeowners, a revelation that most regular folks own items that are considered very valuable would tend to be typical, all across America. Unfortunately, we would also discover that most middle-class homeowners are under a false assumption that all of their collections, toys, jewelry and expensive cameras are sufficiently covered under their homeowner’s insurance policy and quite frankly, such is not always the case.

The Sub-Limit Scenario

organize_jewelryIf you consider yourself to be a typical homeowner, you have probably never read your homeowner’s insurance policy, and therefore, the chances are very good that all of your belongings are not sufficiently insured. The typical homeowner’s policy contains sub-limits (a limit on your contents limit) that generally falls short of insuring certain items of value. Depending on your insurance company, you probably have sub-limits on items like guns, jewelry, art, silverware, money, gold, cameras, and expensive musical instruments. If you haven’t read your policy or spoken to your agent about these sub-limits, you may be in for a very rude awakening if your home is burglarized or things just happen to become missing.

Tools of the Hobbyist

Many avid golfers make an extra effort of purchasing custom fitted clubs that can cost $5,000 or more. Have you ever wondered if your clubs are covered while in the trunk if your

Mercedes were to get stolen? What about that $20,000 Rolex you inherited, but keep in the bag while you’re playing? What if it’s still in the bag that was in the trunk of your stolen Mercedes?

Photography hobbyists are likely to spend over $3,000 for a digital camera and even more for accessories like lenses and filters. Is your coverage sufficient when the strap on your bag breaks and the camera takes a free-fall to the concrete?

Are you a gifted musician that has invested thousands into a piano, violin, or guitar? Is it covered when your mover drops and destroys it or just decides that he needs it more than you do? These are questions that should be posed to your insurance professional when you purchase your policy and every time you purchase, inherit, or win valuable property afterwards.

The Personal Article Floater

Rather than take a chance with insufficient homeowner’s insurance coverage, consider purchasing a personal article floater to cover all of your high-value belongings, and have them covered anywhere in the world. In most cases, the cost per $100 of value is more affordable than scheduling your high-value items on your homeowner’s policy. And almost any type of personal item can be covered. Your property is insured based on a stated amount that is supported by your appraisal or sales receipt and is covered anywhere in the world and while in transit on a per item or blanket basis.

Whether you have a $100,000 collection of Waterford glass or a $300,000 collection of your favorite French Wine, speak with your insurance professional about providing the best protection if the worst should happen.