Today’s insurance topic concerns something near and dear to most of our hearts: Our stuff!

Is your stuff adequately covered by your insurance policy?

If you have homeowners or renters insurance you may assume that all your stuff is automatically covered, and that if something happens to it you will have no trouble getting it replaced. Just a quick call to your insurance carrier and they cut you a check, right?

Not necessarily.

The first thing you want to do to make sure that your stuff is covered is check your policy to see if you have replacement cost coverage or actual cash value coverage (often referred to as ACV). Replacement cost coverage means just what it sounds like it means: your stuff is insured for what it would actually cost you to go out and buy a new one of whatever it was that just got stolen or destroyed. So if you have a ten year old refrigerator that burns up in a house fire, even if you could only get $50 for it at a garage sale before it burned, your insurance company will give you $600 or $800 or whatever amount of money it takes to buy a similar refrigerator new. If you have ACV, you get $50 and that’s it, (after your deductible is met).

Replacement cost coverage on your personal property is usually not much more expensive than ACV coverage, and it is worth every cent. You may think you don’t need it, but consider what it would cost you to replace every spoon, washcloth, shirt, and piece of furniture you own in the event of a total loss. You’d be surprised how fast that all adds up. So don’t scrimp in this area of your policy.

Now that we’ve made sure you have replacement cost coverage on your home or renter’s policy for all your stuff, you can relax, right?

No, not yet.

Some categories of personal property are covered for very limited amounts on a standard homeowners policy, and usually for theft only; not fire, windstorm, or any number of other normally covered perils. If you own any items in any of these categories, you have to add them one by one to your policy by ‘scheduling’ them. Usually this involves getting appraisals, sending the appraisals to your insurance company, and paying a small additional premium each year. By scheduling special kinds of property at a small additional cost, you can insure them for their actual value and insure them against all perils instead of just theft.

Property that falls into this category includes fine jewelry and precious metals, coin collections, antiques, fine art and other collectible items, firearms and other weapons, money, bonds, and some kinds of electronic and business equipment. If you have anything of special value to you, call your agent right now and make sure it doesn’t fall into a category that leaves you with limited coverage. Wedding rings are a good example of a type of personal property that people often neglect to schedule, only to discover later that the rings aren’t fully covered under the terms of their policy.

Another special category of property you might want to consider purchasing additional coverage for is your computer and all its peripheral equipment and software. Many companies have restrictions on how much they will cover when it comes to computers and software, but they offer inexpensive additional coverage that can be purchased. A computer rider is worth every cent, especially if you travel frequently with a laptop.

Do you have a basement family room or office? If so, check with your agent before you assume your property is covered for basement water damage. In some states you can add this coverage, but in others you can’t. Most people don’t realize that a homeowners policy only covers the home from the foundation up, and the foundation itself is excluded. So if water comes in through foundation cracks or seepage, you may find you have no coverage at all if your stuff is damaged while in your basement. Ask if you can purchase “water back-up coverage,” which if available typically can be purchased in $10,000 increments.

How about some good news? I do have some of that too. If your son or daughter is away at college in a dorm room, all of their stuff will usually be covered under the terms of your policy just as if it was still in your house. If they move to an off-campus apartment though, you have to purchase them a renter’s policy, (if you can find someone to write one for a college rental!)

Finally, if you travel, your stuff is covered for up to 10% of the total personal property limit, anywhere in the world. So if you have $150,000 of personal property coverage on your home policy, you have $15,000 in coverage for the stuff you pack in your suitcase. Good to know!

The best ways to make sure you have the coverage you need for the stuff you have are 1) to ask lots of questions, and 2) to read your policy!

When you don’t need that coverage, you never think about it; but the last thing you want is to be surprised in a bad way when you do need it! So take a minute now, dig that policy out, call your agent, and make sure all your ducks are in a nice, neat row.

One day, you’ll be glad you did!