Do You Have the Right Coverage for Your Jewelry?

December 03, 2014

Even if you have just one valuable piece of jewelry, you need to consider whether or not you have the right kind of jewelry insurance and the right amount of coverage. According to Chubb Personal Insurance, $1.5 billion in jewelry is either lost or stolen every year in North America.

Unfortunately, most people will find that their jewelry is either uninsured or underinsured because they don’t understand how personal property coverage works, and they believe some of the myths that are out there about jewelry coverage.

Common Myths About Jewelry Insurance

If you think you have all the jewelry coverage you need under your homeowners insurance policy, you could be wrong. While your home insurance policy does provide jewelry coverage, it is likely quite limited. Most insurance companies limit jewelry coverage to $1,000 – $5,000 after your deductible. In addition, this coverage only applies if the jewelry is lost due to a specific “covered peril” outlined in the policy. If your jewelry is damaged or lost accidentally, you likely have zero coverage.

If you think jewelry insurance is too expensive, you should think again. It is far less expensive to properly insure your valuable pieces than it would be to replace one of them if it were lost.

If you think obtaining jewelry appraisals is time-consuming and not worth the effort, wrong again. It’s still your property, and it’s still important to be financially reassured. We can help guide you through the appraisal process and make sure that you understand its importance in making sure your items are neither under- nor over-insured.

Last, if you think you don’t need special jewelry coverage because your home is safe, you may be in for a rude awakening. You cannot protect your home and belongings under every circumstance, even if you have a home security system. And adding special jewelry coverage protects your jewelry when it is outside of your home, with better coverage limits and all-risk coverage that is not subject to your deductible.

How Can You Purchase Additional Jewelry Coverage?

You can increase the coverage limits on your valuable jewelry in two ways. You can increase the “special limits of liability” for the jewelry category of your homeowners insurance policy. This increase in your jewelry “blanket coverage” will provide a higher overall coverage limit for all of your jewelry.

If increasing your blanket jewelry is not the right option for you, you can add a scheduled personal property rider to your home insurance policy. This will increase the individual coverage limit on specified items, and it will provide all-risk coverage for those items. This means that the scheduled items will be covered for accidental loss outside of the home, damage and many other potential risks.

What Can You Do To Better Protect Your Jewelry From Loss?

Besides insurance coverage, it is important to protect your jewelry from loss at all times. Here are some tips for protecting your jewelry at home.

  • Invest in a home security system. This will help secure all of your personal property as well as make you eligible for an additional discount on your home insurance rates.
  • Store your jewelry in a safe place, such as a safe in your home or in a safe deposit box at a bank.
  • Prepare a detailed inventory of your valuables. Include the date you purchased each item, how much you paid for it and where it was purchased. Keep any other pertinent information as well, such as receipts and a photo. Store your inventory in a safe place away from home.
  • Get appraisals. Only a proper professional appraisal can provide you with the true value of your items and how much insurance coverage you need.

The expert agents at Brooks, Todd & McNeil can help you determine if you have the right amount of jewelry coverage or if you need to make some changes to your policy. In addition, we can help you with your personal property inventory, obtaining appraisals and so much more.