Now that the holidays are over, it’s time to consider how you will protect the jewelry you may have received as a gift from a loved one. New watch, necklace, perhaps an engagement ring!
Here are (4) questions you must consider when insuring valuable items:
Q: Does my Homeowners Insurance Cover Jewelry?
A: Yes, and no. When reading your insurance policy you may see that there’s coverage for unscheduled jewelry items. But beware! That coverage usually has a per-item limit and offers a total coverage typically under $15,000. So if you have a watch that’s $5,000 and your policy includes coverage for $1500 per item, you probably won’t be able to replace it.
Q: What Does it Cover?
A: Jewelry and valuable items insurance will typically cover your possessions for the following:
· Accidental Damage
Q: How Much Does it Cost?
A: For high valued items, I always recommend that my clients purchase a separate valuable items policy. In NY, rates for a standalone valuable items policy typically range between $1-$4 per $100 of value. So, if your ring cost $20,000, your premium could be as low as $200 a year. The rates vary depending on the location and total value of items. Most carriers will ask that you provide an appraisal showing the value and a description of the item in order to offer coverage.
Q: What is Blanket Coverage?
A: One way to insure your jewelry is to purchase blanket coverage. This is typically offered on your homeowners, renter’s or condo policy. Blanket coverage provides an overall limit and a per-item limit. So, you may have $100,000 overall in jewelry coverage, but each item will be limited to, for example, $10,000. While blanket coverage is beneficial for many, if you own items of higher value or heirlooms you may want to schedule them individually.
Q: What is In-Vault Jewelry Coverage?
A: Some carriers offer this type of coverage to their clients. When your company says “in vault” it means in a bank vault, specifically. If this is how you store your jewelry, then you may be eligible for a special rate and program. However, most companies require that you notify them every time the jewelry leaves and returns to the vault. Make sure you ask your agent details before purchasing this coverage.
While most people purchase jewelry insurance through their home, renter’s or condo policy, you can also buy a single policy just for your valuable items. If you have any questions about this type of coverage, let’s talk.
Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.