Most homeowners or renters policies include a certain level of coverage for special personal property. Special personal property are items such as money, jewelry, guns, furs, silverware, etc. However, this coverage may not be enough to cover all your jewelry. Most home insurance carriers offer riders or floaters to add coverage for higher priced personal articles to your policy. There are a few different ways to add jewelry to your policy.
We can add personal articles, such as jewelry, to your policy as a blanket or a scheduled item. A jewelry blanket may be right for you if you have multiple low value items that add up to a significant value. If you have higher value individual pieces, adding the piece as a scheduled item may be the best course of action.
There are a couple of different ways that jewelry is paid out in the event of a claim. Agreed value (think replacement cost) is the value of the item that is paid out in the event of a loss. Actual cash value is the value of the item minus depreciation at the time of a loss.
Most carriers will require appraisals for items that exceed $5,000. The value that determines whether an appraisal is required may differ depending on your carrier. If an item exceeds $15,000 (value dependent on carrier), the carrier may require appraisals to be conducted more frequently. It is always advisable to have appraisals dated within 3-5 years for all insured jewelry.
Coverage applies for repair or replacement. An item is generally covered if it is stolen, lost, disappears without explanation, damaged, or missing a stone. Some exclusions are intentional damage and general wear and tear. If your wedding ring is missing a stone, the carrier will often pay the jeweler the cost of the repair, similar to how a car damage claim works.
Whether or not you insure your jewelry, you should be sure to keep receipts for higher value items and take photos of valuables in your home. For smaller items, store them is a safe location when not in use. Call your agent if you have any questions about adding scheduled items to your policy. Your agent will be able to advise you and make sure the added coverage is right for you.
Get Social