This is the year you finally decided to splurge on that ring she’s always wanted, or that coveted hunting gun he’s had his eye on. That’s great! You’ve made that statement that he or she is loved and deserves special acknowledgement from time to time.
Now, how to make sure that item is insured? Is it covered by your Homeowners Insurance? Your local Louisiana Farm Bureau Insurance agent has all the answers.
Does The Item Require Personal Articles Insurance?
Your agent can explain the coverage of your Homeowners Insurance, which may not cover certain personal possessions of high value. He or she can also advise you if your new purchase is eligible for Personal Articles insurance coverage, and help you choose the plan that is best for you.
Some examples of personal property covered by Louisiana Farm Bureau insurance’s Personal Articles option include, but are not limited to:
- Camera Equipment
- Musical Instruments
- Silverware and Goldware
- Golf Equipment
- Hearing Aids
- Stamp and Coin Collections
- Fine Arts
The Value of a Professional Appraisal
An appraisal is an important step in protecting high value property items because it determines your item’s replacement value in the event that it is lost, stolen, or damaged. In the case of jewelry, it is particularly vital because the value of gemstones and precious metals can fluctuate.
It’s important to work with an appraiser who is a specialist in your item’s category, such as fine art, collectibles, antique furniture, silverware, jewelry, etc. Check online to find out if he or she is a member of a professional association such as Appraisers Association of America, International Society of Appraisers, and American Society of Appraisers, which all require rigorous professional credentials.
Besides determining insurance coverage, there are many reasons to have your personal property appraised, including value comparison, settlement of an estate, a potential sale, loans, etc.
How Does Farm Bureau Insurance Handle Personal Articles Claims?
Broadly, there are two main processes through which personal property claims are handled: replacement cost and actual cash value.
Replacement Cost compensates you for the actual cost of replacing the item, no matter its depreciation. This is an optional coverage for an additional premium which will pay the difference between your Actual Cash Value and the amount you spend to replace damaged or lost property.
Actual Cash Value (ACV) is the value of an item at the time of its loss, calculated by this formula: Replacement Cost – Depreciation = ACV. Figuring depreciation amount is based on several factors, including the age and category of the item, obsolescence, physical deterioration, and others.
Get Started with Farm Bureau Insurance
Whether you’ve already taken the plunge to purchase that long-awaited dream gift for your friend or family member, or you’re still weighing your options, your local Farm Bureau Insurance agent can answer your questions to help you make the right choices about coverage and costs. Either way, congratulate yourself for making someone’s wish come true! Get started by using our Agent Finder to locate an agent near you.