Jewelry Insurance Considerations

The countdown to Christmas is in full swing even as Black Friday and Cyber Monday appear in the rearview mirror. Shoppers do have 4 more weeks before Christmas arrives, so if you haven’t found that perfect gift for the love of your life, you have time! If you’re planning on popping the question to the person you want to share your life with, take a few minutes to think about scheduled jewelry insurance for the ring that says, “I love you!”

Renters & Home Insurance Option: Engagement, wedding, and anniversary rings, along with other jewelry, can be covered by your renters and home insurance policy. This is usually optional coverage based on the value of the ring or item and an affordable way to cover it against most types of loss. To have it covered you’ll need to provide a copy of the purchase receipt or appraisal. There are a couple of questions I suggest you ask to confirm you have the right kind of coverage:

  • What is the limit to the amount of coverage the policy will allow?
  • What types of loss are covered?

Policy Limits: Most insurance companies have a maximum limit or cap, they’ll write for jewelry that’s not scheduled. The limit may be based on the per item value or the value of several pieces of jewelry, provided no one piece is more than say $2,000 or some other amount. If the ring you’re purchasing exceeds that amount, you’ll need to schedule it for it to be fully covered.

I also suggest finding out if there’s a maximum value your policy covers on scheduled items. Some home and renter insurance companies, will not cover an article of jewelry if it’s more than a certain dollar value or percentage of the home’s value. Knowing the limit will assure your renter or home insurance company can provide the level of coverage you need.

Types of loss: In addition to policy limits, insurance companies may tie the amount of coverage to a specific type of loss. In these instances, the policy pays when the jewelry is lost to a storm or fire up to the amount stated in the policy. If the loss is the result of a theft, many policies will pay a lower limit such as $500 or $1,000.

The one peril that is usually not covered is mysterious disappearance. Mysterious disappearance means the jewelry item has been lost such as the ring fell off your finger, the earring is missing, etc. Not all policies cover mysterious disappearance so confirm it is covered before adding the coverage.

Surprise your loved on with that special piece of jewelry and remember to make sure it’s properly covered! The only thing worse than losing it is not having the proper jewelry insurance coverage. Share your questions, comments, or experiences with me on my Facebook, Google +, or LinkedIn pages. I’d love to hear from you!

Thanks!

Ed Wise

Wise Insurance Group

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