Diamonds are a girl’s best friend, right? But what happens when you lose them? As a young adult, recently out of college and also recently married, my engagement ring and wedding band are a few of the most precious and also the most expensive things I own. Before I started working in insurance, I would have been one of those people that just assumed all of my belongings are covered under my insurance policy. Because why not? I’m paying for them to be covered right? Well….unless you’re someone who tends to ask every question in the book before making a purchase, you may not have realized that these items are most likely NOT being covered under your current insurance policy. Here’s what you need to know.
A standard home owner’s insurance policy provides you with 50% of your total insurance coverage on your home that is set aside specifically for personal property. However, jewelry is considered high-value property that can easily be stolen, so coverage for it is limited to a specified amount – typically between $1,000 to $2,000. If you own a diamond engagement ring worth more than this amount or have multiple pieces of high value, this limit would not be sufficient coverage for those items.
If your jewelry is worth more than the specified limit in your insurance policy, you can purchase an additional endorsement or floater policy, also known as scheduled personal property coverage. This allows you to raise the coverage limits of high-value items you own such as: artwork, cameras and equipment, collectibles, firearms, furs, jewelry and silverware. Typically, insurers will require you to have an appraisal for any/all items scheduled unless they were recently purchased and you have receipts available. Having items appraised means the items will be insured for their full value, instead of only being insured to a capped coverage limit. An added benefit of scheduling jewelry items is additional protection. Some carriers provide coverage for mysterious disappearance in the event the items are lost or left behind on vacation, which is a coverage NOT included on the standard homeowners policy.
Protect yourself and your most treasured belongings with a floater policy. Not sure if you have one? Call us and we’d be happy to go over your coverages with you!