Specifics and Benefits of Burglary Insurance
Homeowners are often required by their mortgage companies to keep constant, basic insurance on their homes, to guard against major losses such as fire, flood, or other damage. There are three parts of homeowner insurance, each covering main areas of coverage, but we will be examining the one concerned with personal property replacement, which is normally called C coverage, and includes theft, break-ins and burglaries. Here are some of the rules and benefits of burglary insurance.
Basics of Personal Property Coverage
Typical personal property insurance covers the personal belongings inside a house, and can be extended to include cars and outbuildings. This kind of protection guarantees against damage or theft of your personal property, and unfortunately is often neglected by many homeowners due to its cost. However, considering the high incidence of home break-ins, this kind of coverage shouldn't be ignored. Benefits of burglary insurance are mainly centered on replacing what was lost due to the criminal behavior of others.
Importance of the Inventory
When arranging for homeowner insurance the agency will provide a lengthy form, on which all the significant personal items and their values need to be detailed. In order to receive maximum benefits, an accurate and frequently updated inventory needs to be kept. Also, policyholders should always pay for the personal property replacement value endorsement, which will make the insurance company pay the actual, current replacement value of items on the inventory, instead of a original worth minus depreciation payment, which results in under valuing. Always keep receipts for your records.
Endorsements are add-ons to an insurance policy, and there are a few that are very important in C coverage. As insurers want to decrease their liability payouts, basic coverage severely limits paying for certain, theft-prone items, such as cash, jewelry, artwork, firearms, electronic data, business property and collectibles. In order to receive adequate reimbursement for these items, should they be stolen, always pay for the extra endorsements for maximum benefit. Jewelry especially should be endorsed and scheduled separately, with each item appraised and covered individually.
Deductibles and Claims
In order to keep their premiums down, many homeowners go for a higher deductible, such as $500 or $1000. While this is a good money-saving strategy in the long run, as the average homeowner burglary claim is $2500. If the thefts were less than or just slightly more than the deductible amount, it might be wiser not to file for a claim: the cost won't be much less, if any, to replace the items yourself, plus there is the risk that claims will raise your premiums next time you have to renew. This does happen, especially with those who have filed multiple theft and burglary claims.
The benefits of burglary insurance are obvious, especially for those who have experienced a theft in their home. Homeowners are advised to keep their coverage sufficient, keep their inventories up to date, and to be as detailed as possible in their recordkeeping to ensure maximum benefits. Just because personal property coverage is called C coverage doesn't mean it should be average.