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I’m going to get to all these terms and define them later, but the very first thing I always recommend in my conversations with potential clients is for them to pull out their current insurancepolicy and check the coverage.
Examples of retail replacement value are the price an art gallery asks for a painting in their inventory, the asking price of a table by a furniture designer, or the manufacturer listed price of a sterling silver serving item. It can sometimes be present in insurancepolicies, although in my experience it is much less frequently encountered.
Understand Your Homeowner’s InsurancePolicy The biggest problem I see after a devastating loss is underinsurance, meaning that homeowners suffer a loss yet fail to recover tens of thousands of dollars just at the time when they have lost everything they hold dear. Keep a copy of the insurancepolicy handy too.
It is also important to watch for valuable items like stock certificates, deeds, titles, trusts, and life insurancepolicy documents. Appraising your jewelry, artwork, furniture, and other antiques can help you determine their monetary value, which can be essential for estate planning.
Policies vary from insurance company to insurance company, but generally, there are limitations to homeowners' or renters' insurance that are important to keep in mind if you happen to own items of exceptional value. Let's run through a few of the most common situations.
So, I thought that if I had a policy with a personal property limit of $500,000, and a $25,000 painting was stolen from my home, it would be completely covered, less the deductible of course. I now realize that HO insurance is designed to insure your home, not protect your art collection. I was wrong.
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