Ah, summer, the golden months when all we want to think about is vacation. The summer escape, whether it’s a mountain cabin, a beach bungalow, or some city condo, is the sweetest relief.
Some of us travel light, using the occasion to satisfy shopping pleasure. Others consider heavy bags to be the sign of a happy vacation. Yet all that stuff we take with us – laptop, camera, sports equipment, musical instruments, jewelry – is not only heavy, but also valuable. What happens if these items are damaged or stolen while staying at a hotel or a vacation rental? For peace of mind, first determine whether or your luggage with its contents will be covered by your insurance policy in event of loss due to fire, theft, or some other unfortunate events.
Your renters or homeowners insurance most probably has “off-premise” coverage. In other words, your personal possessions will still be covered outside your home – regardless if it happens to have your property stolen from your car or your vacation rental. Furthermore, you will also be covered for the common perils such as fire, theft, vandalism, and hurricanes. However, if you put your bike on the roof of your car, don’t secure it properly and it falls down, most probably you won’t get a new bicycle under insurance coverage.
The Insurance Information Institute advises to check on the off-premises coverage as some policies limit it to 10 percent of the amount of coverage you have for your personal possessions. Specifically, if you have $100,000 worth of coverage for your personal items, you’d get only $10,000 for off-premises coverage. Check with your agent before you start your vacation. If your off-premise coverage is too low, you may want to consider raising your policy limits.
Depending on where you spend your vacation, be selective with the items you take with you. On the beach or on some mountain, you won’t need all that expensive jewelry or tech. Make an inventory of the things that make it in your luggage and keep it documented and detailed in case you have to make a claim for damage or loss. If you must travel with valuable items, consider adding a floater to your renter’s policy. This endorsement will cover the cost of specific higher-value items, whether at home or on vacation.
