Your jewelry, whether it’s a family heirloom or your wedding ring, is important to you. If you lost it or it was stolen, could you afford to replace it? While your homeowners insurance policy most likely includes some coverage for valuables (jewelry, antiques, artwork, etc.), it may not cover the entire replacement cost. Most policies will only cover valuables up to an assigned dollar limit, which tend to be a low limit. Generally it’s around $1,000-$1,500.
Keep in mind that the average engagement ring costs approximately $5,000. That $1,500 of valuables coverage leaves you with a big chunk of money out of your pocket to replace.
Adding coverage for your jewelry is pretty afforable. It usually costs 1 to 2 percent of the total value of your jewerly. If you had a $10,000 engagement ring, it would cost about $100 to $200 a year to insure it.
The easiest way to get more coverage for your valuables is to add a floater policy to your homeowners or renters insurance. A floater policy gives you more coverage. It can even protect against accidents (like dropping your ring down the sink).
Buying a floater is an easy way to protect your valuables, but it’s not the only way. You can also get coverage through a specialty company. Some companies have stand-alone jewerly insurance that is more comprehensive than the coverage from your homeowners policy.
For your valuable jewerly, an appraisal is likely needed. How much each piece is insured for will be dependent on the appraised value. It’s not based on what you paid retail.
An appraisal states the value and contains a detailed description of the piece. Market flucuations can cause the value to increase or decrease. It’s best to get your valuables appraised every 2 to 3 years to make sure your properly insured.
Not only does your jewerly have sentimental value, some of it has a good amount of monetary value. Jewerly insurance can give you protection and peace of mind, and can be very affordable. If you have valuables that you aren’t certain are properly covered, contact your agent and let them check your current policy and provide you with some coverage options.
Be aware. Be safe!