Tom's Tuesday Tip

Rachel asked a question:

Q: How come I have to schedule my new diamond earrings ($4,500 purchase) with my current insurance company?

A: Many "main street" insurance companies have built-in "sub-limits" on items like jewelry, guns, and sports collectibles. To get coverage, you must schedule these items on a rider, which means paying an extra premium to have them covered under your homeowner policy.

However, if you have a policy with companies like Chubb, AIG, or Hanover (for homes valued at $750,000+), these types of coverages often have no sub-limit built in. This means you can buy those earrings on a Saturday and have them automatically covered without waiting until Monday to add them to your homeowner's insurance policy.

Tom Larsen