How to Cover Family Heirlooms through a Rider Insurance Policy

Today’s blog post is something a little different than what we usually cover here on the blog: insurance. This is a much discussed topic in our industry because, well, how can you possibly insure memories? They’re priceless, aren’t they? As it turns out, you may not be able to cover your photos, but you can try to protect other valuables. For advice on this, I’ve turned to insurance expert Nathan Barber who’ll walk us through how to go about this, but first…a few thoughts by me on the topic.

Can You Insure Memories?

This question is a tricky one, and to my understanding it’s yes – to some extent – but mostly no. You can insure the value of the physical product, but you can’t insure the sentimental value… And that’s where it’s at, isn’t it? Photos are difficult. The last time I checked only the value of the photo paper they’re printed on will be covered if something happens, so your best best for keeping them safe is to get your photos scanned and digitally backed up as soon as possible. However, you probably also have other valuables in your collection, right? Maybe an heirloom or two? You may be able to do more with those. I’m thinking jewelry that has been passed down, or a piece of furniture that once stood in your great grandparent’s home. Things like that.

Keeping Heirlooms Safe

I strongly believe that important heirlooms should be scanned or photographed as soon as possible. In addition to storing them properly, I also encourage people to write down the stories behind these objects. What is this heirloom? Who owned it? and why is it important? I tend to create a little fact sheet about each important heirloom and create a photo book about them (if there’s enough material). It’s a great way to ensure that the story stays with the object! It’s also a great way to document the value of it, regardless of whether it’s monetary or sentimental.

It’s hard to insure memories, but if you have heirlooms that have some monetary value, there are ways to protect you from a loss. Here to tell us all about it is insurance expert Nathan Barber! His article will help you prepare for covering your heirlooms by explaining what a rider insurance policy is, and how to make most use of your home or renters’ insurance to cover those heirlooms. It won’t help you recover a lost item, but perhaps it can help you recoup some of the monetary value. A rider policy steps in to add that monetary coverage to at least give you some money back for your loss.

Take it away, Nathan!

A Rider Policy May Be Your Solution

Did you know that your most valuable family heirlooms might not be covered under your current home or renter’s insurance if ever lost or damaged? You heard right, most insurance companies will not cover your valuables possessions under an average policy. However, you do have options if you take a proactive approach collecting the proper photo documentation organized under a special rider insurance policy.

While many assume their most basic home or renter’s insurance will cover losses of your prized possessions, a typical homeowner’s insurance policy limits the coverage replacement value. So, if something of value of yours was ever stolen or damaged under a covered peril (discussed below), it would likely reach beyond a certain monetary threshold. Thus, it would not be covered and replaced by your insurance. If this happens, you would be forced to pay out of pocket to replace the items, or lose out on your valuables.

How a Rider Policy Works

While your home insurance typically covers 50 to 70 percent of your home’s insured amount, it limits certain items that may be of significant worth. For example, if you own a rare piece of jewelry that has been passed down from generations, that cost over $1500, and it was damaged or lost under a covered peril, your standard home insurance policy would not pay up to replace it. While some of your items are priceless, you would still be at a loss on the item’s market rate.

This is where a rider policy is appreciated. A rider policy covers the gaps in your possession coverage amount. Otherwise, you would have to pay the difference in coverage to replace the jewelry. It’s important to note that we understand if you ever lose a priceless family heirloom that has been passed down generations, it will likely be gone forever. There’s no way you can replace the memories and tradition that comes with the tangible item, but if you qualify for a rider, explore the option to see if you could at least cover the monetary value. While the typical limit on items is around $1500, it depends on your insurance policy.

What is a Rider Policy?

Rider policies are also called floater or endorsements, and act as micro-policies added on to your typical home or renter’s insurance. It is a boosted home or renters insurance policy for your belongings. Especially for high priced items that are your family heirlooms. For a few extra dollars a month, you can be assured that your most valuable belongings are covered.

What Rider Policies Typically Covers:

• Jewelry
• Coins
• Antiques
• Art
• Oriental Rugs or Quilts
• Valuable Papers
• Furniture
• Clocks
• Musical Instruments
• Weapons
• Relics
• Toys

Additionally, rider policies expand coverages for mysterious or accidental losses and disappearances.

This type of coverage is not under most home or renter’s insurance policies. Also, this type of policy doesn’t attach a deductible (amount you must pay before insurance kicks in). One of the proactive approaches is to read the fine print of your policy to understand your limits, coverages, deductibles, and other important details of your insurance.

Cost of Rider Policies

The typical cost to add a rider policy equates to around 1 to 20 percent of your monthly premiums. It all depends how much supplemental coverage you need to add, your claims history, and the value of your items. Most rider policies are on the lower side of added monthly costs.

Making Sure your Valuables are Documented

It is recommended that you get your valuables appraised to understand the true worth of your possessions. From there, you will need to also take an inventory of your possessions. This way you are making sure you have covered everything else you own. Taking inventory is vital because your insurance company needs to know much your items are worth to replace it. If you don’t, then you likely would be out a large sum of money if you ever had to file a claim.

To take inventory of your home possessions, taking proper photos is the best proof you can have. You want to take as many detailed photos of your items and organize it however way you deem fit. There are many ways and approaches you can take to document your items. You can read how to take inventory here.

Check with a Pro

While nobody wants to even think about losing your passed down possessions, you will feel a little more comfort knowing that you are at least covering the cost of the item through a proper insurance policy. While you may lose out on the item if ever damaged or stolen, it will provide some assurance that you can at least try to recover some value through an insurance claim. We recommend contacting your home or renter’s insurance company to discuss what you need to do to cover your most valuable items. You may find some surprising details that need to be addressed.

Editor’s Note: Thanks for your perspective, Nathan! I’m going to agree, and remind our memory-making readers that if there are heirlooms of either sentimental or monetary value in your collection, take photos of them and write down the stories! And if you have photos, get them organized and scanned as soon as possible!

What say you, readers? Do you have any insurance on any of your valuable heirlooms?

Featured Photo Courtesy of Debby Hudson