For many, jewelry and Valentine's Day go hand-in-hand. But did you know that your homeowner or tenant insurance policy may not provide you with adequate insurance coverage for your sparkling Valentine's Day gifts?
Jewelry insurance: Does your home policy cover you?
Yes, but up to a limit. Most property insurance policies have special limits on certain items, like jewelry. This means that the maximum the insurer will pay in the event of a loss is limited to the amount specified in the wording of your coverage and is subject to the policy deductible.
The total amount payable for a loss of jewelry can vary between insurance companies, although a limit of $5,000 is typical and usually applies to all of your jewelry combined.
Is your jewelry worth more than your policy limit?
If your jewelry is worth more than your policy limit, most insurance companies offer the option to schedule these items on a Personal Articles Floater and you will pay an added 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 home insurance history.
How to insure your engagement ring, wedding ring, or other jewelry you may own
Insuring your jewelry is relatively simple and starts with a call to your home insurance provider. They’ll talk and walk you through the process that will typically kick off with you getting your jewelry appraised. With the appraisal in hand, your home insurer will be able to schedule your jewelry on the Personal Articles Floater.
How much does it cost to get your jewelry appraised?
The cost for a jewelry appraisal will vary depending on the complexity of the piece but you can expect to pay in the neighourhood of about $50 to $150 per item. For example, a simple wedding band should cost less to appraise than a multi-stoned engagement ring. The fee charged, however, should never depend on the value of the item.
How to know your jewelry is protected
Be sure to check the limits listed in your homeowner or tenant insurance policy and discuss your options with your insurance professional. Don’t be shy about asking questions because you’ll want to know exactly how your valuables are covered, and just as importantly, how they are not covered. Here's a checklist to ask your insurer:
- What happens if your jewelry is stolen? Lost?
- Are you covered if your jewelry is damaged or a gem falls out?
- Does the coverage follow you, if for example, you’re out of the country on holiday?
- What type of scenarios are excluded from coverage?
- Does the jewelry need to be appraised? And how often should it be appraised?
- How will you be reimbursed and is there a deductible?
- Will you be reimbursed for the full value of the jewelry?
- How will a jewelry claim affect your home insurance?
- If you have a home safe or vault, do you qualify for a discount?
Like any valuable—and what’s not more valuable than jewelry given to you from a loved one—proper coverage is golden should you ever need to rely on it. Take stock of what's in your jewelry box to ensure you have sufficient coverage for all that's precious.
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