What’s Covered in a Homeowners Policy?
Most people know that the contents of their home (called Coverage “C” in the policy) are insured on their homeowners policy. Usually for some percentage of the coverage on their house (typically you’ll have an additional 50% of the amount you insure your home for available for your personal property or contents.)
Homeowners Insurance Limitations
It is extremely important to note, however that there are LIMITATIONS on certain types of personal property or content. We’ll list most of those limitations below, and in future articles we’ll discuss ways you can either buy additional amounts of insurance, or insure these items a different way. A limitation means that the insurance caps the amount they will pay out for a certain types of things you may own.
In the meantime, if you notice a homeowners insurance limitation that affects you, give us a call. It’s possible your policy does not have the same limitation (these limitations are in the “plain” or “basic” homeowners policy forms – some company offer higher limits) or we can discuss ways to remove these limitations or insure your contents differently.
Common Homeowners Insurance Limitations
Here’s the list, as it appears in a typical policy (some editing done for brevity — you should really take a look at your own policy to see how it reads).
- $200 on money, bank notes, bullion, gold, silver, platinum, coins, medals, scrip, stored value cards and smart cards.
- $1,500 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps.
- $1,500 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors.
- $1,500 on trailers or semitrailers not used with watercraft of all types.
- $1,500 for loss by theft of jewelry, watches, furs, precious and semiprecious stones.
- $2,500 for loss by theft of firearms and related equipment.
- $2,500 for loss by theft of silverware, silverplated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware.
- $2,500 on property, on the “residence premises”, used primarily for “business” purposes.
- $500 on property, away from the “residence premises”, used primarily for “business” purposes.
- $1,500 on electronic apparatus and accessories, while in or upon a “motor vehicle”, but only if the apparatus is equipped to be
operated by power from the “motor vehicle’s” electrical system while still capable of being operated by other power sources.
Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this
- $1,500 on electronic apparatus and accessories used primarily for “business” while away from the “residence premises” and not in or upon a “motor vehicle”. The apparatus must be equipped to be operated by power from the “motor vehicle’s” electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this Category K.
As you can see, it’s a pretty long list and it covers some pretty common items. Call us if you have questions, or would like to learn about options to increase these limits, or insure these items in another way.
About David Dempsey Insurance Agency
Founded in 1984 by David Dempsey, David Dempsey Insurance Agency serves Rome, GA, Floyd County Georgia, metro Atlanta and surrounding area. Focusing on insurance for families and individuals, we don't provide quotes - we provide auto and home solutions for our fellow community members. We also specialize in insuring retail businesses, restaurants, health clubs and child care / home care centers.