how to ensure full-value reimbursement in the event of a loss · to document value but as time...
TRANSCRIPT
When the coverage is purchased, appraisals are required
to document value but as time passes and values change
— increasing and decreasing based on market fluctuations
and depreciation — policies are rarely adjusted, and that’s
a problem. Additionally, valuation clauses in policies vary,
and policyholders may be sadly surprised to find out
they’re underinsured. Here’s how they work.
Valuation clauses will compel the carrier to calculate a
loss as either:
1. The replacement cost (which can be less than the
insured amount)
2. The “stated amount” (or insured value listed on the
policy)
3. The “stated amount” plus a 50% buffer if the value
has increased
Are Your Valuable Items & Collectables
Fully Insured? By William Santiago | Senior Risk Consultant – Director of Personal Lines
Smart Talk
ypically, a standard homeowners policy will provide
coverage for your personal property — but the policy
may have a set dollar limitation on how much it will pay
for certain categories of valuables such as jewelry. You
must separately insure high-valued collectables and
items with unique or historical value as scheduled
personal property for the broadest coverage and the
protection of its full value.
Adding this coverage to your homeowners insurance
property may increase the coverage limits on specific,
high-value items such as jewelry, furs, stamps, coins,
artwork, silverware, and antiques. Although scheduling
collectables provides broader coverage, without the
proper valuation clause, the policyholder may not receive
full reimbursement for the loss.
How to Ensure Full-Value Reimbursement in the Event
of a Loss
The buffer is available only if other
items in the same category are
insured with a total value equal to
the difference. This problem-solver
eliminates both the hassle of frequent
re-appraisals, and any possibility of
being underinsured.
Remember, a homeowners policy
alone does not provide full protection
against a disastrous loss, but we have
you covered. Chernoff Diamond &
Company’s insurance leadership was
founded on the belief that off-the-shelf
solutions are not good enough for
our clients. That’s why our risk
management services extend far
beyond property and casualty insurance
coverage. We leverage the market and
a wide array of trusted companies to
ensure you get the solutions you need
and the best value for your premium
dollar.
Now that’s Business-Smart!
Safeguard your valuable items and
collectables and get the Chernoff
Diamond Business-Smart Advantage.
Contact William Santiago, Senior Risk
Consultant, Director of Personal Lines,
Risk Management Consulting at:
or call 516-683-6100.
Smart Talk
Smart Talk is a publication of:
Business Smart
www.chernoffdiamond.com
ABOUT THE AUTHOR
Bill Santiago assists affluent
individuals and families with
navigating through the complexities
of risk transfer insurance needs and
objectives. He helps minimize the
burden of financial loss through
cost-effective risk transfer, and
leads his team in identifying risk,
determining methods to mitigate
liability while examining the
adequacy of existing programs
to procure necessary coverage,
reduce exposure and minimize
premiums.