Although we all hope to keep ourselves and our belongings safe in today’s fast-paced world, the possible adverse scenarios are abundant – your new camera is stolen, your watch goes missing, or your bike is damaged in an accident...
Although we all hope to keep ourselves and our belongings safe in today’s fast-paced world, the possible adverse scenarios are abundant – your new camera is stolen, your watch goes missing, or your bike is damaged in an accident. Today, there are three main ways people can protect their specialty items (i.e. their valuable personal belongings such as bikes, scooters, jewelry, and electronics):
An existing homeowners’ or renters’ policy is the default insurance mechanism for a lot of people. These policies generally provide good cover for homes and apartments, but are usually inadequate for specialty items. Policyholders face limitations that are often only uncovered upon submitting a claim and being denied due to an obscure footnote buried in the policy’s fine print.
In typical homeowners’ and renters’ policies, common limitations include: a value limit on individual items (coverage limit may be between $500 and $1,000 for a single item); limited or no protection for items away from the home; and no protection at all for certain items. Homeowners’ and renters' claims typically also require a deductible (your out-of-pocket payment before the insurance company starts to pay). For example, it’s common to have to pay a deductible of $500 to make a claim on a $1,000 eBike, which means it’s often not worth claiming on these policies given that your premium may also rise.
Another option is to add a scheduled personal property or floater (named so because the policyholders essentially float coverage to a specific item) to your homeowners’ or renters’ policy. Though it may sound strange, it simply means you add an individual item (such as your bike, watch, engagement ring etc.) to your homeowners or renters insurance, pay any required uplift in premium, and in return receive additional coverage that may be more appropriate for certain valuable items.
Different companies use different language to describe exactly what they cover, so it’s important to properly check with your insurer on what additional coverages are offered and whether the scheduled personal property is covered at full value.
Even with scheduled personal properties, homeowners’ and renters’ policies often do not include coverage for specialty risk areas, such as liability and medical payments for bikes or unexplained loss for jewelry. Claims often also increase the base homeowner or renter premium in the following years, which means consumers often need to decide between making a claim and preventing a hike in their annual premium payment.
You may also see the terms “rider” and “endorsement” flying around in the insurance world. These are similar to a scheduled personal property or floater, with one main exception. Instead of extending coverage to individual items, riders and endorsements extend coverage to certain categories (e.g. a collection of jewelry).
So…rider or floater? Well, there is another option!
Due to the limitations of other options, consumers may choose to purchase specialty insurance to ensure their valuables are adequately protected. These insurance policies are designed to cover your individual items for risks specific to those items which are usually excluded in homeowners’ and renters’ policies. The key features of these policies include:
Homeowners’ and renters’ policies are absolutely essential and every resident should have one – they are necessary to protect your home and the general property within it. However, consumers should be aware of the coverage gaps in their policies when it comes to insuring their valuables and on-the-go items, and should seek out specialty insurance to get proper coverage.
At Oyster, our goal is to eliminate these coverage gaps and ensure consumers have the proper protection for their valuables. In the following articles, we’ll describe the different specialty insurance policies for your personal belongings across bikes, jewelry, collectibles, and electronics. If you’re interested in learning more about specialty insurance or Oyster’s modern insurance products, send us an email to chat with an Oyster insurance expert!
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Our analysis of Oyster's claims data offers a window into the risks our policyholders face. By staying informed and prepared, you can better protect yourself against these common issues.