How is my Jewelry covered by my homeowner’s policy?
Did you receive the gift of jewelry for Valentine’s Day this year? If so, do you want to fully protect it?
This is a question we are commonly asked by our clients whether they rent an apartment, own a condo, or live in a single or multi-family home. Generally, your home insurance policy provides important coverage including personal property protection for your belongings inside your dwelling. Here’s what you need to know:
- Regarding damage: Some perils such as fire, lightning, and smoke damage are protected against up to the policy limit selected.
- Regarding theft: There are special limits of coverage for items such as, silverware, fine arts, rugs, furs, musical instruments and jewelry that is stolen or mysteriously disappears. Some companies only provide up to $1000 or $1500 per claim.
Jewelry is the most common item of concern to our clients. Even if your jewelry does not include the Hope Diamond, the best way to ensure that you are fully covered is to "schedule" specific pieces on your policy. The insurance company will typically require an appraisal within the last three years on file and will charge between $10-$15 per $1000 in coverage. In the event your engagement ring is stolen, for example, the carrier may reimburse the actual appraised value if they can't find you an identical replacement
Imagine receiving only $1000 for a $20,000 stolen ring. We recommend you schedule any jewelry you value to protect you against this kind of loss.