- Most insurance policies provide a stated maximum amount of coverage for the contents of your home, including valuable items and equipment. If you have a great deal of expensive equipment, you must typically itemize them with your carrier and pay more. Your homeowner's insurance covers loss from natural disaster or from theft. A police report should be filed and may be needed by your insurance company before it processes a claim.
- Most policies provide actual cash value coverage for your stolen equipment, which includes depreciation. Actual cash value means that if your 15-year-old photographic equipment is stolen, the insurance company will calculate the useful life of your equipment and depreciate the item to its present value. The other option is to pay you full value of the items without depreciation. If you opt for the replacement cost on your equipment, the coverage pays out the amount that it takes to replace the stolen equipment with a new replacement item.
- If you operate a home-based business and your equipment is stolen, your homeowner's insurance policy may not cover business-related losses. You may need to purchase extra coverage. This is a business expense and is tax-deductible. When your agent writes your insurance policy, you should inventory your equipment and provide a cost basis for your items. Ask the agent for specific rates and coverage related to your equipment. Scrutinize your policy, and ask the agent to explain to you exactly what your policy pays. In other words, you should never assume it's covered.
- Equipment that is lost or stolen outside of your home, such as at a train station, airport, storage facility or even a moving van, may be covered on your homeowner's insurance policy. Check your homeowner's policy for off-premises protection; if you aren't covered, you will probably be able to purchase additional coverage.
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