Table Talk – Property Insurance

Tanner Wilkinson talking with Nate Johnson from Risk Managers, LLC on insurance FAQs

Q: Give us a recap on what we talked about last month in regards to dwelling insurance.

A: We talked about the actual structure of the home, and two key points are to be specific on your usage. What are you using it for, renting it out, living in it, is there an apartment, do you run a business out of the home? The other point, because of inflation, is making sure that there is enough coverage. To avoid actual cash value or coinsurance penalties.

Q: Lets get into personal property, what counts?

A: Your personal property are the things that help you function in your life. The beds, couches, TVs, tools. All the little things within the home.

If it is a 4wheeler, a boat with an engine, that needs to be covered separately. A canoe will be included in personal property.

Q: What might be some other items you want to increase coverage for?

A: The big things you want to look at are jewelry, firearms, monies and securities, gold and silver. There is a base coverage limitation on the policy, generally up to $1,000 or $2,500 max.

The analogy I use is that everyone has a Rolex when there is a fire. The company will say great, but we needed to know that before the fire. Things like this will need to be scheduled.

Q: Do you have an example of claim that should have been scheduled?

A: Yeah, without using names, I had a friend that was big into doing ski shoot for competition. The gun was sent to manufacture to be cleaned or serviced. He mailed it out in June and in July he received a call from Fedex or UPS, but the truck had been stolen. And that firearm was gone. So we filed a claim, but because it wasn’t scheduled, the individual only got $2,500 on an $8,000 12gauge. Gun.

We don’t think about this occurring, we have items in a safe so we don’t expect those losses to occur.

These limits are a max value, not per item. So if you have several guns or jewelry with a total value over the limit, you will want to schedule each of the items. The premium to schedule items will generally run about 5% of the value.

Q: How does a claim work when it comes to personal property?

A: We often have the misconception that when we have replacement cost on personal property, we’re going to get a check to replace the item(s) right now.

The way that it works, if there is a total loss, you will get a check for the amount. If there is a small fire in the home, you will be getting a check for the actual cash value of the lost items. Say you lost two TVs and a couch. You get a check for say $2,000. You buy a couch and send in the receipt to get a check for the difference. You need to replace the item to get the check for the replacement cost.

Q: Any final thoughts?

A: We love to be here for the community, if you have any questions you can reach out to us or visit our website

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