If you own a high-value home, then it stands to reason that you will need more personal possessions insurance as part of your overall benefits package. However, even strong contents coverage might still leave holes in coverage, particularly when it comes to very high-value items like jewelry.
Not only does jewelry of any kind have monetary value, but it also has sentimental meaning. To you, any piece is precious, regardless of its worth. However, to your insurer, the piece will always equal tangible value, which sometimes will need unique benefits. These might or might not be automatically part of your plan. That’s why it’s important to ensure you have the appropriate benefits for your jewelry at the time you enroll in coverage.
When Home Insurance Doesn’t Cover Jewelry
On one hand, jewelry is usually insurable under both standard and high-value homeowners insurance. However, both types of plans include terms, conditions and limits on the jewelry coverage provided.
For example, if your rings slips off while you are taking a shower, and goes down the drain, then your policy will not cover it. Loss in and of itself is not an insurable peril. Usually, your policy will only cover unexpected, unpreventable losses. Failing to take your jewelry off before a shower does not qualify.
Other Accidents Will Have Coverage
Though jewelry loss is typically not covered by homeowners insurance, there are numerous other scenarios where you might have coverage. Let’s consider your home being gutted by a fire, and your jewelry being destroyed. Or, what if a thief breaks in and makes off with your jewelry? Shouldn’t you be able to replace it? Under such unexpected circumstances, your home insurance will cover the loss of your jewelry.
Nevertheless, keep in mind that even coverage home insurance will have its limits. For instance, even high-value home insurance policies might place a sublimit on how much they will pay for jewelry. Even though you might have $100,000 in total possessions coverage, for instance, jewelry might be limited to only $10,000 worth of coverage. Is this enough for you?
Getting Coverage for Jewelry
When insuring jewelry under your homeowners insurance, first take a look your standard benefits. Let your agent help you determine where you lack essential coverage. They can then help you determine the best course of action to expand your benefits appropriately.
A scheduled jewelry endorsement will insure your specific pieces individually, at their unique values. Therefore, in the event of a jewelry loss, you will have benefits tailored to each item’s worth. Keep in mind, premiums and deductible rules might vary on a floater.
With very valuable jewelry, a specific jewelry policy might come in handy. It can often cover some or all the cost of the lost item as a result of a very wide range of damage. Some policies include extended benefits for jewelry loss.
Talk to your insurance agent about the best way to insure your precious belongings. We are always happy to help.