If you own jewelry, you know it is worth it. If you own jewelry that has sentimental value, you know that its value cannot be named by price.
Regardless of the fact that insurance companies may not be able to help you with the priceless part of the sentimental value of jewelry, they can help you by offsetting it at market value.
The initial concern on this for every homeowner, renter, or condo owner is whether the related insurance policy they have purchased will protect them from financial losses 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 be sure that any standard policy covers your personal items, including jewelry. The question is how much?
Coverage depends on the limits related to your policy. Also, your rings, bracelets, necklaces, brooches, etc., will not be covered if they are damaged by daily use or by something like a stone lost when falling from its setting.
However, naturally, learning about the various related policy discrepancies is in your best interest as a jewelry owner. While there are several insurance plans that cover individual pieces of jewelry for an amount, there are those that cover your pieces in their entirety, for 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 is the value of your personal jewelry?
If you don’t know if you have enough insurance to cover the loss of a jewelry store, it’s time to take stock of your collection. Due to the fact that the value of jewelry can increase as time goes on, it is strongly recommended that you have it professionally appraised at least once every three years. Save all jewelry sales receipts, as well as your professional appraisal documentation, to show your insurance agent. This will help you work together to determine if you need any additional related coverage.
Read the following example about Sandra to understand the insurance issues discussed.
Sandra’s set of diamond earrings was valued at $ 2,000. Your diamond engagement ring was appraised at a value of $ 7,500. The problem is, you only have related coverage for a loss of $ 3,000. If you do the math, Sandra could suffer a monetary loss of $ 6,500 if her earrings and ring are stolen at the same time.
But fortunately, there is a solution to the situation.
Sandra can easily fill the insurance gap by insuring her high-value earrings and rings separately within her homeowners policy. Known as scheduled insurance or a rider as a supplement to your policy, it lets the insurance company know how much each individual piece is valued. With the value documented, Sandra will be reimbursed the full value, in the event of a loss. In general, the additional schedule or annex will provide more extensive coverage. For example, while your standard homeowners insurance does not cover a stone loss, the supplement enhances your protection to cover it.
For a more in-depth conversation about related coverage, speak with an independent agent.
