Your home insurance policy usually covers jewelry, but only up to a limit. If you have jewelry worth more than $1,500, consider raising the limit on your policy or adding an extra policy.
Also known as a floater policy, an additional jewelry policy allows you to “schedule” a specific piece of jewelry and buy extra coverage for that item. Floater policies usually cost more, but they come with additional perks.1
Here’s how to make sure you have the best protection for your jewelry.
Standard home insurance policies provide coverage for jewelry since insurers consider it personal property. But most policies have a coverage limit of up to $1,500. Adding extra coverage for expensive pieces is often worth it, and you can get extra protection in two ways.
You can increase the liability limit on your homeowners policy to cover a higher amount, like $2,000 or $5,000. Increasing the coverage amount is usually cheaper than other options, but coverage is still limited, and per-item limits apply.
Or you can add scheduled personal property coverage, which covers individual items and provides more extensive coverage. You can typically add an extra policy through your current insurer, or you can work with a specialty company. Annual coverage usually costs 1%–2% of the item’s value, so you can expect to pay between $100 and $200 per year for a piece that’s worth $10,000.
Whether a standard home insurance policy covers theft, damage, and losses depends on what your policy includes as “named perils.” Policies include a list of covered damages.
Coverage for jewelry typically includes the following named perils:2
The rules are different if you add a separate insurance policy to cover your jewelry. Scheduled personal property policies usually cover accidental losses and other types of damage.
Even if you have coverage for jewelry, sometimes your policy won’t cover your pieces. Here’s when your standard policy might not help with a loss:
Jewelry is worth more: Even if you have coverage, the policy will only pay for your jewelry up to the policy limit. For example, imagine you have a policy that covers up to $1,500. Your heirloom necklace is worth $7,000, and someone steals it from your home. Because of your policy limits, you can only receive $1,500 for the claim.
Intentional accidents: Filing a claim for a deliberate accident is insurance fraud. You only have jewelry insurance coverage if the loss is due to a covered event.
Uncovered events: Standard insurance policies only include coverage for some events. For example, you must purchase a separate flood policy. If you don’t buy the extra policy and lose your wedding ring in a flood, it’s not covered.3
You can add extra protection with a floater policy, which is a separate policy that only covers the scheduled item. Coverage is more extensive and includes accidental losses. You can also insure your jewelry for exactly what it’s worth, which guarantees an accurate payout if you file a claim.
Jewelry insurance, also known as valuable property insurance, is a separate insurance policy that covers lost, stolen, or damaged jewelry. The coverage is more extensive than standard homeowners insurance.
You can cover any type of jewelry, including watches, rings, necklaces, bracelets, and earrings. Most standard insurance companies offer valuable property insurance for 1%–2% of the item’s value. You can also choose to work with a specialty insurance company that focuses on jewelry coverage.
Setting up coverage for jewelry is straightforward. Here’s how to do it:
Document the value. Determine the value of your pieces with an appraisal from a jeweler and get written documentation of your jewelry’s worth. While not always required, it’s still a good idea to have up-to-date values for all your jewelry pieces. You may also need photos and a formal appraisal, depending on the policy requirements.
Secure your jewelry. To prevent loss or theft, store your jewelry in a safe or lockbox. Some insurers require secure storage options.
Determine the coverage limit. Different types of policies have different coverage limits. Make sure your jewelry has enough coverage for the total value.
Pick a policy. Determine the type of policy you want: standard homeowners insurance, increased liability coverage, or a separate policy. You can start by contacting your current insurance company, regardless of the type of policy you choose.
Most people hope they never need to use their insurance policy, but you might have to. Here’s how to file an insurance claim if your jewelry is lost or stolen due to a covered event:4
Gather evidence. If you experience theft, file a police report and request a copy. For lost jewelry, gather information about how and where it happened.
Contact your insurance company. The next step is to contact your insurance company to file a claim. Explain what happened, and provide evidence if you have it.
Complete the next steps. Your insurance company will explain the next steps, which might involve providing additional information or answering questions about the event.
Pay the deductible. Some insurance policies have a deductible. You’re responsible for paying the deductible, and the insurer will cover the rest up to the limit.
Figuring out insurance coverage for valuables takes time. Here’s what to consider as you determine the best jewelry coverage.
To an extent. Standard home insurance policies include personal property coverage, which covers jewelry. But the coverage is only up to a specific limit, usually $1,500. If you have jewelry that’s worth more, consider additional protection.
It depends. Jewelry insurance is often worth the cost if you have jewelry that’s worth more than $1,500. It might also be worth it if you want additional protection against accidental loss and other risk factors.
The cost of jewelry insurance depends on the type of coverage. For a valuable property policy, you can expect to pay 1%–2% of the appraised value of each piece. For a $5,000 piece of jewelry, the premium would cost $50–$100 per year.
Standard homeowners insurance usually includes personal property protection for up to $1,500. If your jewelry is worth $1,500 or more, you probably need extra coverage to adequately insure it.
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