Homeowners Insurance Riders: What Do You Need?
Homeowners insurance and renters insurance cover many of your belongings in the case of theft, fire, or some other disaster. He only problem is that it doesn’t cover everything. These insurances usually do not cover particularly expensive items such as jewelry, artwork, antiques, or other items with high value. Riders (or add-ons) to your policy can protect these items in the case of an incident.
When do I need a rider?
The first thing to do is to check and see how many items of yours will not be covered by your homeowner’s insurance. If you have a lot of items not included, then you will need a higher value homeowners policy. This can be expensive, but if you compare it to the amount of money you would lose, you can see how it is more than fair.
However, if you only have one or two items of particularly high value, then you might only need one or two insurance riders, and these will cost you very little in premiums while covering thousands of dollars’ worth of items.
Extra insurance for Jewelry
Jewelry is usually the most common when it comes to insuring valuables. Homeowner’s insurance typically covers around $1,000’ worth of jewelry. However, as you probably know, jewelry can get particularly expensive fast. Perhaps you bought an engagement ring for your fiancé. You happened to have a good chunk of change when you went to look, and then next thing you know, you just dropped $5000 on a 1-carat diamond ring. It happens. You will want to get that insured because that one item well exceeds your $1,000 limit. The good news is that a policy covering that kind of ring will only run you around $20 or less a month! Adjust this for a more affordable ring, and you can see how negligible the extra premium could be.
Extra insurance for Art and Antiques
Another type of item you might want to insure is art or antiques. These two are grouped because these items usually become more valuable as time goes on. This makes insuring their worth difficult because most policies cover their value at the time of their loss. When insuring these items, make sure you discuss this in detail with your agent and understand the exact parameters of the claims settlement. Also, make sure these items are evaluated and certified as authentic, so in the case of an accident, you can be reimbursed the cost.
Extra insurance for rugs
Homeowners insurance may or may not cover your carpets. If you have an expensive oriental rugs, then it is suggested that you get a rider. These rugs can be enormously costly and take up a lot of the money your house may be insured for. The rider will help put aside an extra cost for the rug, so you have more money left for regular items.
Consider insuring your high-value items with a rider
This only covers three common high-value items, but if you have an inherited any items like expensive sterling silver utensils, fur coats, or anything else of high value, talk to your agent and find out how much a rider will cost you. One thing it definitely won’t cost you is thousands of dollars’ worth of lost rings and rugs.