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Jewelry Coverage-How does it work?

August 09, 2018

Maybe you’re a collector of relics. Maybe you received a piece of heirloom jewelry that has been passed down from generations. Or, maybe you got way more than what you expected with a huge rock from your fiance or husband. Whatever the case may be, you want to protect it. But, what you may not know, is that ring can be covered on your home insurance. The coverage from your standard home insurance plan may not be enough to cover that jewelry for what you would expect though.

With a standard, un-endorsed home policy, there is typically limited coverage jewelry for $2,500 per piece, with a $5,000 maximum. Some companies may offer less or more coverage per piece. This coverage is always subject to your home insurance deductible. So, if you have a $1500 deductible and a piece of jewelry is stolen that is valued at $3500, your coverage would only be $2000 depending on your policy limits. That may not sound very appealing to some. Also, in the event of a loss of a stone or damage to your ring from dropping it, you may not have coverage under a standard home policy. This is where scheduling your property comes in.

“Scheduled personal property is extra insurance coverage that extends beyond the typical coverage provided in a homeowners’ insurance policy. By purchasing scheduled personal property coverage, owners can ensure that the full value of expensive items will be covered in the event of a claim,” According to Investopedia. Jewelry coverage can be purchased to cover the value of your jewelry, collectibles, even guns and trading cards. This can be selected with a separate deductible (often $0 deductible), and can even cover jewelry under more broad types of losses than with a standard home insurance plan. This coverage is available with most home insurance companies and is often written as an endorsement on your current home policy. The cost of the coverage is very reasonable and will require a recent bill of sale or appraisal to determine the value of the piece(s) you’re insuring.

One thing you may want to be aware of though when filing a claim on your damaged jewelry.  Some insurance companies may want to repossess the damaged jewelry in order to recoup their losses.  In the event that piece of jewelry has a certain sentimental value, that may be difficult to fathom.  In most cases, such as a loss of a stone, the insurance company will just replace the stone.  This is one of the reasons an appraisal is needed when you schedule your item.  That way, they can replace the stone with comparable cut, clarity, and color.  But, if there is damage to the band itself, the insurance company may request the ring in order to pay the claim.  Just as if you have a totalled car and you sign over the title to the insurance company so they can recoup their loss, the damaged band will be treated the same.

If you would like more information, or have questions on how to protect your personal items that are outside of the typical home insurance coverage, feel free to give us a call!  We will be happy to assist you in protecting your future today!

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