When you have jewelry that is of high value, it is important to make sure that you have insurance coverage for it. If something were to happen to your jewelry- like it being stolen or damaged- you would want to know that you are covered. Many people assume that their homeowners insurance policy will cover their jewelry if something happens, but this is not always the case. In this blog post, we will discuss different types of insurance coverage that are available for high priced jewelry. We will also talk about what needs to be done in order to make sure that your jewelry is covered under your homeowners policy. So, if you are wondering how to get insurance coverage for your high-priced jewelry, read on!
Types of Insurance That Covers Loss of High End Jewelry
Homeowners Insurance: Does It Protect my High End Jewelry?
Homeowners insurance can definitely, in most cases, protect you from loss of your high end jewelry, but it is important to check with your insurance carrier to be sure and also to understand any possible limitations. For instance, many homeowners insurance policies will have a limit on how much they will pay out for jewelry claim, often $1,000 to $2,500. So if you have jewelry that is worth more than that, you will want to be sure that it is covered under a “floater” or “scheduled item” rider on your policy. A floater or scheduled item rider essentially expands the coverage on your homeowners insurance policy to cover specific items that are of high value. In order to get a floater or scheduled item rider, you will need to have your jewelry appraised and then list the items on your policy. The premium for a floater or scheduled item rider will be based on the value of your jewelry, so it is important to have it appraised accurately.
When Is Stand-alone Jewelry Insurance a Necessity?
Another type of insurance that can cover loss of jewelry is stand-alone jewelry insurance. You may have in your possession a piece of jewelry that goes beyond what a basic home insurance policy covers, in these cases you will want to insure the jewelry specifically. For example, if you have a diamond engagement ring that is worth $50,000, it would make sense to get a stand-alone jewelry insurance policy for it since your homeowners insurance policy would most likely only cover up to $2,500 of its value. A stand-alone jewelry insurance policy will protect your jewelry from loss, theft, and damage, and you can usually tailor the policy to fit your needs. For example, you can choose to insure your jewelry for its full replacement value or its actual cash value (which takes into account the jewelry’s depreciation).
What Should You Do if Your Jewelry Is Now Worth More Money?
So when you first received your precious high valued piece of jewelry, let’s say you did the right thing and had it appraised and insured, what happens if the value of that piece has gone up significantly? You may be surprised to know that most insurance policies do not cover the full value of your jewelry, but rather they have a set limit. For example, if you have a $5,000 diamond ring that is insured for $2,500 and the value of the ring goes up to $10,000, your insurance policy will only pay out $2,500. The onus is on you, the jewelry owner, to keep up with the value of your jewelry and to make sure that it is properly insured. You can do this by having your jewelry appraised on a regular basis- at least every five years or so. This will ensure that you have the correct insurance coverage for your jewelry and that you are not under insured.
What If My Jewelry Is Lost or Stolen When I Am Not at Home, Is It Still Covered?
Say you are out for an anniversary dinner with your spouse and you misplace your engagement ring, sure it is insured, but is it covered for loss? The answer is, unfortunately, no. Most jewelry insurance policies will not cover jewelry that is lost or stolen when it is not in your home. So what can you do to protect your jewelry when you are out and about? One option is to get a policy that covers your jewelry both inside and outside of your home. Another option is to get a jewelry insurance rider that covers your jewelry while you are away from home. This type of rider will usually have a limit, so it is important to discuss your needs with your insurance agent to make sure that you are adequately covered.
What Is a “Scheduled Item” on Your Homeowners Insurance Policy?
A scheduled item on your homeowners insurance policy is an item of personal property that is specifically listed on your policy with its own coverage limit. This type of coverage is typically used for high-value items such as jewelry, art, and collectibles. In order to add a scheduled item to your homeowners insurance policy, you will need to have the item appraised and then add it to your policy for coverage.
No one wants to think about their jewelry being lost, stolen, or damaged, but it is important to be prepared for the worst. By getting insurance coverage for your high-priced jewelry, you can rest assured knowing that your jewelry is protected. Have questions about jewelry insurance? Contact us to learn more.
