You inherited Auntie Ethel’s antique porcelain vase from the Ming Dynasty – it h

Question

You inherited Auntie Ethel’s antique porcelain vase from the Ming Dynasty – it has been valued at $25,000. It is not covered by your basic renter’s insurance (HO-4). How can you most easily (and cheaply) insure against the loss of or damage to this antique vase? .

A. Purchase an all-peril homeowners insurance policy. The vase will be covered under Part C (Contents).

B. Build up a savings account equal to $25,000 to be able to replace the vase out of your own pocket.

C. Increase the deductible on your homeowners insurance policy (Part C - Contents) to $25,000.

D. Purchase a “personal article floater” in the amount of $25,000 to specifically cover the vase.

Explanation / Answer

(A) THIS OPTION IS NOT SUITABLE AS THERE IS LIMITATION ON PAYING ON DAMAGE IN ALL-PERIL HOMEOWNER INSURANCE POLICY WHICH WILL BE LESS THAN VALUE $25000.

(B) THIS WILL BE ALSO NOT ADVISABLE AS IN CASE OF DAMAGE ALL SAVINGS WILL GO AND ALSO SAVINGS IS A COSTLY AFFAIR

(C) AGAIN NOT SUITABLE DUE TO LIMITATION THAT IN CASE OF DAMAGE FULL AMOUNT WILL BE NOT PAID

(D) YES THIS IS MOST SUITABLE OPTION TO PROTECT THE VASE IN CASE OF DAMAGE. IT WILL BE CHAPER ( AS NOT INSURANCE OF TOTAL HOUSE HOLD) AND ALSO NO LIMITATION ON PAYMENT AS INSURED FOR $25000. HENCE “personal article floater” WILL BE TAKEN TO SPECIFIALLY COVER THE VASE

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