Various household accidents can turn into disasters when they damage valuable items such as appliances, electronics, and antiques. A standard household insurance policies can give the policy-holder a certain peace-of-mind knowing that they are covered if such an accident were to occur. However, many policies will only cover damage to standard household items such as televisions and stereos, leaving the homeowner to cover the cost of other items when they discover their policy does not include them
Items which are not covered in a standard plan can be afforded the same level of protection, often for a small additional cost. Households which have delicate items such as antiques or those with small children will often find this policy upgrade to be very valuable. The add-on policy will allow the homeowner to recover the cost of the damaged item in the case of an accident in the home.
Exactly which items your policy actually covers will differ between insurance companies. You need to be sure to read the fine print and pay attention to the details which list which items are covered and which items are not. This information can help you decide if a policy upgrade is the right choice for you. It is important to note if a policy will allow a new-for-old replacement. You will also want to check the upper limit the insurer will cover for non-specified items as this can be different from company to company.
A new-for-old replacement policy will allow you to replace a damaged item with one that is brand-new. This is a common feature in most policies. However many insurance companies will factor in a certain amount of depreciation based on its condition and how long you have owned the item. If your policy has such a clause, you could be refunded less than the retail-cost of the new replacement item.
Review the policy carefully and note the limit placed on accidental damage. You may find that the value of certain items in your home exceeds this limit. If this is the case, you should immediately let your insurance company know and request additional coverage for those items. If such an item were damaged and no additional coverage was requested, the insurance company may very well deny your claim if it were to become damaged.
Aside from ensuring that your policy will cover all valuable items in your household, you should be aware of policies which may reduce the amount of money you are paid in a claim.
Low monthly premiums may seem attractive, but they often come attached to high deductibles. In the event of a claim, you could be forced to pay a significant sum before the insurance company will pay. In many cases this deductible can be close to or even higher than the cost of a replacement item. Also be check to see if there is a deductible per-item or per-claim. If it is per-item, you could be forced to pay a great deal if many items were damaged.