Standard homeowners and renters insurance policies include coverage for personal property. However, there are special limits of coverage for certain items, meaning that the insurance company will not pay more than the amount specified in the policy. One important special limit is for the theft of jewelry. To keep coverage affordable, standard policies have a relatively low limit for theft coverage of jewelry, generally $1,500. This means that no matter what the value of the jewelry and no matter how many pieces are stolen, the company will only pay out $1,500 for that jewelry.
So how do you get the coverage you need for the beautiful sapphire earrings or diamond cufflinks you receive this year?
Well, if you own valuable jewelry or other items that would be difficult to replace, review your policy for special limits. If your higher value items fall under these limits there are usually two ways you can increase coverage:
- Increase the special limit amount.
- Insure your individual pieces through the purchase of a floater or valuable items policy.
Increasing the special limit amount of coverage is usually the least expensive option in terms of insurance premium; however there is generally a limit on the amount you can claim for the loss of any individual piece, say 2,000 when the overall limit is $5,000.
Insuring your individual pieces may cost a little more in premium, but this alternative offers broader protection as the floater covers losses of almost any type, including accidental losses— such as dropping your ring down the drain of the kitchen sink or leaving an expensive watch in a hotel room - which standard policies do not cover. In order to insure these higher-value items the insurance company may require an appraisal of the item to make sure the item is being insured for the correct amount.
Speak to your insurance agent about other valuable items you may own such as collections, fine arts, silverware, or antiques to make sure that the insurance you need to protect these items is included.
Remember not all policies are the same and sometimes you need to change the policy you have to cover your unique insurance needs. Review your coverage with your insurance agent to make sure YOU have the coverage that is right for YOU.