Many people don’t realize that homeowners and renters policies have special sub limits for jewelry. On most policies this limit ranges from $500 – $2000 special limit for jewelry theft losses. Many women have an engagement ring worth more than the standard limit and would be out of luck if something were to happen. So it’s important coverage to consider.
How to get proper coverage:
To get proper coverage on a jewelry item it needs to be scheduled on the home or renters policy with a jewelry floater. In order to do so the insurance company will require an appraisal or a receipt dated within the last 2 years to verify the value. They will also ask for some extra premium! This rate is typically 1.75-3.00 dollars per 100 insured. For example the cost for a 10K item, would cost 200 per year at a rate of $2 per 100. Seems expensive but consider you are walking around with the value of some cars on your hand!
Benefits of scheduling jewelry:
Beyond the proper coverage limits, two other very important factors come into play.
1) Floaters typically have a zero deductible. This is important as the average home policies deductible is 2000. So even for less expensive jewelry items it can make sense to “buy back” the deductible in this way.
2) Floaters cover mysterious disappearances. This means it doesn’t have to be a theft like it does under the home policy. You could just accidently lose it in the lake, at the gym, etc.
Other Sub-limits catagories to be aware of:
2) Fine arts
3) Silverware, Goldware, Platinumware, and Pewterware
4) Imported Rugs and Tapestries
5) Money, Securities, Deeds, Valuable Papers
6) Comic Books, Collectable
7) Business Property
8 ) Computers