With everyone staying closer to home these days, most people are relying heavily on their household electronics. You don’t want anything to happen to these items, and you certainly don’t want someone to steal them. Not only might they make off with a lot of value, but they might also take a lot of private information with them.
Electronics—TVs, computers, phones, stereo systems, smart electronics—often have theft coverage under homeowners insurance. However, policies will contain limits that might impact how much they will pay. Keep a few ideas in mind when insuring these items on your homeowners policy.
Homeowners Insurance for Theft
When you buy your possessions insurance, you choose the coverage limits on the policy. This is the maximum amount that your policy will pay for all possessions lost to a covered claim. If you want to insure electronics, then you will want to include the value of these items when calculating your possessions limit.
Still, even with a high possessions coverage limit, other policy limitations might apply:
- Most policies will only pay for damaged items based on their actual cash value. So, if someone steals a computer system that is several years old, then your policy might only pay the value of that item at the time of the loss. Since most items depreciate, this might not be the same amount you need to buy a new system.
- Some policies include sub-limits on certain possessions. For example, though you might have $100,000 in possessions coverage, your policy might only pay up to $2,500 for electronics.
- Policies will include deductibles. These are the costs that policyholders pay towards their own losses. So, if someone steals a $500 computer, and your policy includes a $1,000 deductible, then you will have no coverage. The total cost of the claim is less than your deductible.
Still, though these limits might exist, there are ways to buy increased coverage. For example, you might choose to buy replacement cost coverage instead of cash value coverage. You’ll receive compensation based on a possession’s like-new value as opposed to its used value.
Additionally, if you want specific coverage for high-value electronics, then consider buying a scheduled item endorsement. This coverage will specifically apply to a certain electronic device. This item will have guaranteed coverage in case of a theft claim.
Plus, many people have concerns about identity theft accompanying electronic theft. The good news is that many homeowners policies offer identity theft endorsements to address such losses.
Don’t hesitate to ask your agent about the best way to insure your electronics of value. We’re here to make sure your policy gives you adequate protection in case of significant losses.
Also Read: Will Homeowners Insurance Cover Pet Damage?
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