The value of expensive jewelry often goes beyond its monetary value to encompass both monetary and sentimental value. This is especially true if it represents special moments or special people in your life. As such, it is important to take the necessary measures to protect your jewelry from damage, theft, or loss. It is worth noting that jewelry accounts for about 70% of all personal property theft losses. This is where special coverage for jewelry comes in handy, especially because both renters and home insurance policies typically offer limited coverage. Here’s everything you need to know about jewelry insurance.
Standard Homeowners Insurance and Jewelry
While a standard homeowners policy typically covers jewelry against named perils such as damage and theft, it typically has a coverage limit of about $1,500, according to the Insurance Information Institute (III). This means that if your jewelry is worth more than this amount and you only have a standard home insurance policy, you’ll suffer a financial loss.
Increase Your Liability Coverage Limit
If you want more insurance coverage for your valuable jewelry, you can add a rider to your homeowners policy, effectively raising your jewelry coverage limit. For instance, you can pay extra to increase the liability limit to $2,500 for each item and $5,000 overall. This is the less costly way of getting more coverage, but it can still be inadequate.
Purchase an Insurance Floater
To get more insurance coverage for your jewelry, supplement your homeowners policy with a ‘floater’. A floater is an additional policy added to your standard homeowners insurance that covers a specific item. Purchasing a floater is more pricey but it provides the broadest protection for your jewelry. Whether your engagement ring slips down the bathroom drain, a burglar steals your expensive watch collection, or you lose your ruby necklace while on holiday in the Caribbean, a floater will cover those items.
Special Coverage for Jewelry
You can also get a specialized jewelry insurance plan. A lot of stand-alone jewelry insurance policies and floaters provide similar offerings. The similarities include:
- They cover the loss of a piece of a set, like one diamond earring.
- They cover various problems like mysterious disappearance, accidental loss, and theft.
- They cover the jewelry that you carry with you during your international travels.
However, stand-alone policies may offer additional benefits such as covering a broken clasp on a watch or a chip on a stone in a necklace. Typically, specialized jewelry insurance costs 1% to 2% of the value of the jewelry. For example, for a $6,000 engagement ring, expect to pay anything between $60 and $120 annually.
What You Need When Insuring Your Jewelry
Some of the documents you’ll need when insuring your jewelry include:
- The original sales receipt
- Certificate for gemstones
- An appraisal from a licensed appraiser
- Pictures of your jewelry
To protect your expensive jewelry fully against theft, loss, or damage, you need special insurance coverage. To find the right jewelry insurance policy for your needs in Houston, Texas, or beyond, contact our experts at J. Archer Insurance Group. We will provide you with a policy that meets your unique needs.