Limits of liability For basic homeowners policies, a specific minimum amount of coverage is required for each of the major property coverages, based on the primary amount of insurance selected. Deductibles With a homeowners policy, a deductible applies to the property portion of the policy. A deductible is the amount you would have to pay out of your own pocket before the insurance coverage kicks in. The higher the deductible you select, the lower your premium payment is. This means that your personal property is covered in most situations, regardless of the cause of loss.
Special limits apply to certain items such as jewelry, watches and furs.
Should you need even higher amounts of coverage than that offered by the Valuable Items Plus endorsement, a separate Valuable Items policy is also available. There are several endorsements or separate policies that cover personal property items for higher limits of coverage. A Valuable Items policy may be needed to protect your jewelry, furs or other treasured possessions. For example, let's say your dog bites someone, a guest falls down your front stairs, or your son throws a ball through your neighbor's window. You are legally responsible for these actions.