A standard homeowner or renter policy has serious shortcomings
if you have a significant amount of money tied up in guns, jewelry,
gems, watches, furs, fine arts, trading cards, coin collections,
or other valuables. The most significant shortcoming is found
in a section titled something like
Special Limits of Insurance for Certain Personal Property
where you will find phrases like these that
limit what the policy will pay:
$1,000 for theft of jewelry, watches,
precious and semi-precious stones,
$2,500 for theft of guns and their accessories,
parts or equipment
$1,000 for trading cards
$250 for money, bank notes, and
bullion; coins and medals and other
numismatic property; and precious
metals including platinum, gold and
Another shortcoming for such items include the lack of any coverage
when these items are missing but evidence of theft cannot be proven,
also known as mysterious disappearance.
The value of these types of items at the time of loss can be major point
of disagreement, and policy deductibles will also be applied.
Most of these shortcomings can be addressed by a personal inland
marine insurance policy (yes, an oddly named policy).
Personal inland marine insurance is a specialized type of
insurance coverage designed to protect valuable personal
property, especially property that may be frequently on the
move or not confined to a single location.
Key points about Personal Inland Marine Insurance:
Added to Home Policy or Purchased Separately:
When added to a home policy, this type of coverage is referred
to as "Scheduled Personal Property". When purchased separately
it is referred to as a "Personal Inland Marine"" policy.
Describe and Value:
You describe each valuable item that you want to insure separately, and its value.
This might include items like expensive jewelry, artwork, antiques, collectibles,
valuable electronics, musical instruments, or other significant possessions.
Appraisal or Documentation:
In many cases, the insurance company might require you to provide
documentation to prove the value of the items. This could involve
obtaining appraisals, receipts, photographs, or other relevant
information that helps establish the item's worth.
Once the items are identified and their value is established,
the insurance company adds them to the policy as "scheduled"
items. This means that each item has its own specified
Coverage on inland marine or personal property schedules typically
protects against a much wider range of risks, including accidental damage,
loss, theft, and even mysterious disappearance (where the item
is lost but the cause is unknown).
The cost of adding a scheduled endorsement to your policy will
depend on the total value of the items being insured and the level
of coverage you choose. You'll typically pay an additional
premium for the endorsement. The premium is usually quite inexpensive.
No Deductible or Lower Deductible:
Inland marine or personal property schedules often come with either no deductible
or a lower deductible compared to the deductible applied to
other policies. This means that in the event of a claim, you might have to
pay less out of pocket.
By purchasing Inland Marine coverage, you can ensure that your high-value
possessions are adequately protected. You can have peace
of mind knowing that your most prized and valuable items are
safeguarded against a wider range of risks.