Scheduled personal property coverage

What is scheduled personal property coverage?

Scheduled personal property coverage insures a high-value item, such as an engagement ring, at its full value and extends coverage to include lost items.

“Scheduled personal property is an additional coverage that may be endorsed on [a] homeowners insurance policy. It provides coverage for valuable items that may exceed the standard limits covered under the basic personal property coverage on a homeowners policy,” McKenzie says.

This endorsement is used for items exceeding the personal property limits on a homeowners policy. Those limits usually range from $1,500 to $2,500, and apply to certain categories of property.

While personal property coverage on homeowners insurance doesn’t cover an item if you lose it, a scheduled personal property endorsement does. It usually has no deductible.

It’s important to note the difference between a scheduled personal property endorsement and a floater. Both provide the same type of protection for scheduled items. However, a floater is a standalone policy separate from your home insurance. 

What type of property does a personal property floater cover?

Personal property endorsements and floaters are commonly used to cover jewelry but can be used for art, collectibles and anything else that falls under special limits on homeowners insurance or needs additional protection.

Examples of items that can be insured this way are:

• Engagement and wedding rings
• Necklaces, bracelets and other high-value jewelry
• Fine art paintings, sculptures and other art pieces
• Antiques and heirlooms
• High-value or rare musical instruments
• Autographed items or other collectibles
• Cameras

Who needs a scheduled personal property endorsement?

If you own high-value items that exceed the limits on your home insurance and that you can’t afford to replace, you should consider a scheduled personal property endorsement or a floater.

“Homeowners who may own high-valued items such as jewelry, guns, antiques, musical equipment, collections, etc. should look into their homeowners policy to gauge exactly what their policy coverage and limits are. If any items exceed the value and limitations on the standard home policy, this scheduled personal property endorsement may be beneficial to adequately cover their belongings,” McKenzie says.

It’s especially important to schedule your personal property if you have high-value jewelry that you wear regularly or multiple high-value items; remember that the special limits on personal property don’t pay out per item. If you have $2,500 in coverage for jewelry, that’s the limit of what will be paid out for all of your jewelry.

How much does scheduled personal property coverage cost?

The cost of an endorsement or floater varies, but on average you can expect to pay 1-2% of the insured amount. So, to insure a $10,000 ring, it might cost between $100 and $200 a year.

Rates vary by company, so ask your insurance representative for a quote on your particular item. If you’re buying a standalone floater, shop around and compare rates.

How to schedule personal property

Buying a scheduled personal property floater is easy:

• Get the item appraised. Your insurance company will require a professional appraisal to determine the item's value.
• Provide the appraisal to the insurance company. Your agent or representative will review it and provide a quote for the coverage.
• Pay the premium. If you’re good with the quoted amount, pay the premium to start coverage.

“Homeowners must individually list, or schedule, their items on the policy with a description, and appraisal. Most insurance companies will require an appraisal to be submitted in order to verify their value,” McKenzie says.

Scheduled personal property vs. blanket insurance

Scheduled personal property covers a specific item for its appraised value. Blanket insurance, however, sets an overall limit for all items covered by the policy. 

Let’s say you have $25,000 in blanket insurance for jewelry. You own one ring worth $30,000, and the rest of your jewelry is worth $15,000 combined. If all of it is stolen, you’ll get $25,000, which is $20,000 short.

Let’s say you keep that blanket coverage and add a floater for the $30,000 ring. Now, when all of your jewelry is stolen, the floater will pay the ring’s total value, and you can make a claim against the blanket coverage for the remaining $15,000.