Most people are surprised to learn homeowner’s and renter’s insurance policies don’t offer full coverage for their engagement rings or other fine jewelry. The standard homeowner or renter insurance policy usually covers jewelry theft, but not other kinds of loss.
Homeowner and renter policies typically have limits for loss of some types of personal property, jewelry is one of them. The standard homeowner policy will have a set maximum limit and will usually only cover theft. If the value of jewelry exceeds coverage limits, you need to make some choices on how to manage the other risks.
If you have some special or nice pieces of jewelry most insurance companies will require you to have it appraised by a certified jeweler. With an appraisal you have a few choices you might want to consider:
- Purchase a floater, or policy endorsement for each valuable piece of jewelry. This provides homeowner and renters with a specific amount of coverage based on the appraised value of each piece of jewelry.
- Purchase a stand-alone policy specially written to protect a specific valuable item.
The way you decide to insure your special personal property items depends on your own personal needs. The average person may have a few high value jewelry items generally with sentimental value attached as well. The first place to start looking for type of insurance that will cover all of your needs is with your current agent.
When you discuss the issues of jewelry and other special personal property insurance floaters, endorsements or stand alone polices be sure to ask questions and make sure you have a clear understanding of the coverage.
Always ask:
- Is there a deductible for this coverage?
- Is an appraisal required for this insurance?
- Is the coverage worldwide?
- Are items covered for full replacement cost?
- In the event of loss does the policyholder have to replace items, or can a cash settlement be obtained?
- Does the policy cover repairs to damaged jewelry?
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