Home insurance is great for replacing jewelry that’s been stolen, but if you have a standard homeowner’s insurance policy, your expensive jewelry items are not going to be totally covered. While personal property that is not itemized on your insurance policy includes jewelry (at a very limited amount), it may not be sufficient coverage for jewelry valued at, say, $1,000 or more.
Valuables require a separate floater policy
With a jewelry floater, or stand-alone jewelry insurance policy, you can increase your coverage amounts so that it will cover the theft of, or loss of, expensive trinkets in any type of catastrophe. In addition, depending on the type of policy you select, you can obtain coverage for losses that occur during travel outside the US, as well as any unexplained disappearances, or lost gemstones.
A stand-alone policy usually offers broader coverage. When it comes to expensive jewelry, home insurance policies don’t often cover you if your jewelry is damaged or misplaced, for example, for things such as a chipped diamond, or a ring that accidentally gets flushed down the toilet or lost in the kitchen drain. Under your homeowners insurance, even a high-value policy, jewelry is only insured up to a specific amount.
Insurers generally require appraisals
In most cases, you must get jewelry checked out by an appraiser before you can get coverage from an insurer that specializes in jewelry insurance. Among the factors that are considered in appraisals are the type of metal and the number of diamonds or gemstones in each piece.
If for any reason, part of a set is lost, stolen or destroyed, the value of the other items included in the set is, unfortunately, also diminished. A stand-alone jewelry insurance policy can provide coverage for that loss in value (or for the fashioning of a replacement to restore the value of the entire set). This policy may also allow you to get a replacement of the full set if needed.
Remember, if you haven’t had a jewelry appraisal done in a while, it is recommended that you do so. The price of gold alone over the past few years has risen significantly, and your appraisals will likely be outdated.