With Valentine’s Day just around the corner, you may be thinking about getting that ‘special someone’ a piece of jewelry or perhaps even popping the question with a lovely diamond ring. But did you know that your homeowner or tenants policy may not provide you with adequate insurance coverage for your jewelry?
Most insurance policies have special limits of insurance on certain items, like jewelry. This means that the maximum the insurer will pay in the event of a loss of particular items is limited to the amount specified in the standard policy wording and subject to the policy deductible.
The total amount payable for a loss of jewelry can vary between insurance companies, although a limit of $5000 is typical and usually applies to all of your jewelry combined. Other items with special limits of coverage under most insurance policies include furs, stamp or coin collections, money and bicycles.
You may be able to purchase coverage for items you have which are more valuable than the limit set out in your policy. Most insurance companies offer the option to schedule these items on a Personal Articles Floater and you will pay a premium based on the value of the item. Typically, an item scheduled under a Personal Articles Floater is not subject to the policy deductible, however, any claims will still affect your record.
Be sure to check the limits listed in your homeowner or tenants policy and discuss your options with your insurance professional.