How much money do you keep on hand for emergencies? How much jewelry do you own? Do you own any guns? These are all questions that we asked you when we first wrote your homeowners insurance. What has changed since then? All property policies contain limitations on certain types of property. Look for the section in your homeowners policy titled, "Special Limits on Certain Property."
An example of a limited property item would be money. The typical policy has the following limitation on this category:
Limit - $200 - Money, bank notes, bullion, coins and medals and other numismatic property and precious metals including platinum, gold and silver, but not goldware or silverware
In this case, the policy would limit recovery to only $200 after the application of your policy deductible. In some cases, this amount of recovery would barely scratch the surface of the actual loss.
An insurance policy is written to provide coverage for the average policyholder. Most of us do not own collections, or keep large amounts of cash at our homes, and we probably would not want to pay a premium that would provide open-ended coverage for such unique items. While the policy provides limited coverage for special types of property, some consumers require higher limits with broader coverage than provided in the basic policy.
For the collector or owner of unusual property items, there is a solution. It is possible to amend your homeowners policy, by endorsement, to provide special coverage for unique items, including property, that is subject to limitations in the homeowners policy.