Were you the recipient of some beautiful jewelry for Valentines day? Were you one of the 6 million who received an engagement ring? If so. You may want to make sure you have the proper insurance in place.
Insurance policies differ from one company to the next, but policies typically limit coverage for jewelry and other types of items that might be very valuable. The most common types of homeowner insurance policies impose a limit of $1,500 for loss by theft of jewelry, watches, precious and semi-precious stones. This means that, regardless of how many jewelry items might be missing following a theft loss, the insurance company will not pay more than $1,500 for the loss. There is no limitation on jewelry if the loss occurs as a result of another insured peril. So, for example, if jewelry is damaged as a result of a fire the items would be covered. There is no coverage at all for jewelry or gems that are simply lost because mysterious disappearance is not a peril covered under the policy.
Jewelry floaters are the best way to insure valuable jewelry. Items insured under a floater are normally covered for any type of loss – at the value indicated on the floater. A jewelry floater, also called a rider, is an endorsement attached to an insurance policy to add coverage for specific items of jewelry. Items insured under a jewelry floater are scheduled, meaning they are specifically described, and their value is clearly indicated. Before agreeing to insure high-value jewelry items, most insurers will request photos and current appraisals to accurately establish value. Jewelry floaters add to the premium of the policy – but are a wise investment for those who wish to protect valuable jewelry.
Homeowner’s insurance policies typically provide limited coverage for jewelry. Policies generally do not cover jewelry, or gems from jewelry pieces, that are simply lost. Read your homeowner’s insurance policy carefully to determine whether your valuables, such as a diamond ring, are adequately insured
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