Today I found myself reading an article about insurance coverage for big-ticket holiday gifts. As I read the article I thought about an incident a friend of mine had about ten years ago. My friend bought her son a new video game console and three “must have” video games to go with it. She knew that her son and her husband were horrible snoops and hiding any of their holiday gifts at home meant that they would surely be found. After giving the situation some thought she decided to bring all of their gifts to her office and store them there until the big day. The day before she planned on bringing the festively wrapped gifts home to place underneath the tree the sprinkler system in her office went berserk and caused nasty sprinkler water to soak every inch of space. Computers were destroyed, rugs were sopping wet, and her gifts were ruined. My friend ended up writing the whole thing off as a gigantic loss and made up for it the next year.
This memory prompted me to call Dave Jr and ask if the same situation happened in 2015 would her office’s insurance cover the loss or could she claim it on her homeowners insurance? His answer surprised me, I had assumed that all homeowners insurance would cover the loss, just like losing your expensive camera while on vacation. He stated that “Unless you have a personal effects rider on your office policy you are out of luck. However, there may be coverage on your homeowners policy for personal effects off premises. An agent would need to go through to see. It all comes down to what form your homeowners policy was written on.” It would seem that not every homeowners insurance policy covers the same things.
When you purchase an insurance policy you enter into a legal contract with an insurance company. That contract should be read and reviewed annually to ensure that the coverage you think you have is truly the coverage that you actually have. Read it before you sign it! The other lesson that can be taken from this little walk down memory lane is this, call your insurance agent the very same day you purchase those big ticket holiday items and make sure they are properly insured should the unthinkable occur.
Do you find yourself wondering exactly what your current homeowners insurance covers? Hudson Valley Agents will happily re-evaluate your current insurance policy and find you the homeowners insurance coverage you truly need.