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North Dakota, USA | You do have "blanket" coverage for your personal property but there are several types of property that have smaller limits built into the policy that will be the maximum the company will pay under the blanket. A few of the common ones are jewelry, firearms, antiques, fine art, collectibles, etc. Depending on the company you may have as little as $1,000 in total coverage for each catagory. So if somes breaks in and steals $20K worth of jewelry you will still only collect $1,000 unless it is scheduled. In order to collect a covered loss must occur, such as theft, fire, tornado or one of many others; but losing it is not considered a covered loss because when you lose something you never really know what happend to it. If you did, it wouldn't be lost.
Scheduling items not only provides a way to raise the $ limit but also gives you much broader coverage than the blanket. Most personal property coverage has an off premises limit whereas scheduled items are covered for their value. I would never say that it will be covered 100% of the time because there will always be a rare case that pops up where something wasn't covered; but Scheduled property is basically covered for whatever happens wherever it happens for the lessor of the value stated or replacement cost.
You should also make sure you have Replacement Cost coverage on your personal property. Some policies don't automatically include it but it can be added on. With out it you would only get the depreciated value of your belongings. Just think about the difference. For example, you have a fire, major damage, you only have ACV (actual cash value) coverage on contents. What is a 10 year old sofa worth these days? Would you rather get $1,000 to replace it or $75 because that is probably all it is really worth. Now think about each piece of furniture, your clothes, dishes, electronics, everything in your house. Scary and very expensive thought.
Eric in ND.
Edited by Eric in ND 10/12/2012 15:18
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Why I don't have a diamond in my wedding set
