Know your limit

Thanksgiving is just around the corner, and "know your limit" could easily refer to how much you're going to eat come next Thursday. But the limit I'm referring to is the limit(s) on your contents insurance.

Yesterday's post covered the 3 most common questions/misunderstandings regarding insurance coverage. It seems that the limits hit a nerve, creating questions. Let's say your contents insurance is for $100,000. You know this is plenty to cover your linens, clothes, furniture, electronics, appliances, dishes ... everything in your house. Using jewelry (a common limit is $1600) as an example, even if all of your items total less than $100,000 INCLUDING jewelry, you're still going to receive only $1600 at the most. The same goes for each category that has limits (firearms, cash, etc.). Think of each category as a pocket. When the pocket is empty, even if you have more in another pocket, that specific limit as been maxed out and you can't 'borrow' from another pocket.

I hope this helps clear things up. If not, call your insurance agent. Also, take the time to add up the value of your jewelry; then, check your insurance policy and see if the amount of your limit will cover all of your necklaces, watches, rings, earrings, and bracelets. A rider is very inexpensive compared to what you face to lose.