If you own jewelry, you know it has worth. If you own jewelry that has sentimental value, you know it’s worth cannot be named by price.
Regardless of the fact that the insurance companies may not be able to help you with the priceless part of jewelry’s sentimental value, it can assist you by compensating you for its market value.
The initial concern about this for every homeowner, renter or condo owner is if the related insurance policy that they have purchased will shield them from the financial loss associated with jewelry losses.
The Summary of Jewelry Protection in a Homeowners, Renters and Condo Policy
Whether you own a home, condo or rent your residence, you can rest assured that any standard policy covers your personal items, including jewelry. The question is, how much?
Coverage depends on the limits related to your policy. In addition, your rings, bracelets, necklaces, brooches, etc., will not be covered if they are damaged by everyday use or by something such as a stone lost by falling out of its ring setting.
Naturally, though, educating yourself about the various discrepancies in related policies is in your best interest as a jewelry owner. While there are various insurance plans that cover individual pieces of jewelry per an amount, there are those that cover your pieces as a whole, per a certain amount.
It’s best to sit down with an insurance professional to help you review your coverage and determine if you have adequate protection.
What Value Does Your Personal Jewelry Have?
If you do not know if you have enough insurance to cover a jewelry loss, it’s time to assess your collection. Due to the fact that jewelry’s value can go up as time goes on, it is strongly recommended to get your jewels appraised professionally at least once every three years. Keep all jewelry sales slips as well as documentation of your professional appraisals to show to your insurance agent. This will help you work together in determining if you need any extra related coverage.
Read the following example about Sandra in order to comprehend the discussed insurance aspects.
Sandra’s diamond earring set was appraised at a value of $2,000. Her diamond engagement ring was appraised at a value of $7,500. The problem is she only has related coverage for a $3,000 loss. If you do the math, Sandra could be in for a $6,500 monetary loss if both her earrings and ring are stolen at one time.
But thankfully, there’s a solution for the predicament.
Sandra can easily have the insurance gap filled if she insures her high value earrings and ring separately within her homeowners policy. Referred to as scheduled insurance or a rider as an add-on to her policy, it enables the insurance company to know how much each individual piece is valued at. With the documented worth, Sandra will be reimbursed for the full value, should there be a loss. In general, the added schedule or rider will provided broader coverage. For instance, while her standard homeowners insurance will not cover a stone loss, the add-on enhances her protection to cover it.
For a more in-depth conversation about related coverage, speak to an independent agent.