'Tis the Season

‘Tis the season for jewelry!  With all of the jewelry commercials, your loved one may be enticed to buy a new diamond necklace, gold watch, or sapphire ring for that perfect holiday present.  That piece of jewelry may be one of the more expensive items you have in your home.  Do you know if your jewelry is properly insured?

Homeowners insurance policies often have a limit on how much coverage they provide for jewelry.   Talk with your insurance agent to see what your policy provides.  There is likely a maximum limit (i.e. $3,000) and possibly a per item limit (i.e. $500).  If you have items that are worth more than the provided limits, you’ll want to make sure each item, and their value, is specifically listed on your policy. 

You’ll also want to review, with your agent, the types of losses that are covered under your Homeowners policy.  Some policies limit theft coverage to inside the home.  What if your item is stolen from a hotel room?  Also, some policies require that there is physical evidence of a break in for theft coverage to apply.  What if the thief enters through an unlocked window? What if you lose your engagement ring?  Depending on your needs, your insurance agent may recommend a separate policy for your jewelry that will provide broader coverage than your Homeowners policy.

How do you know how much your jewelry is worth?  For valuable items, it’s recommended that you get them appraised by a reputable jeweler, every few years, as the value of gold and diamonds change.  Keep the appraisals in a safe spot in your home, or better yet, in a lock box at the bank.  If you have an insurance claim, you can produce an appraisal showing how much the item is worth, plus documentation with a specific description of the item.

Losing a valuable piece of jewelry, especially one with sentimental value, is very difficult. You don’t want to find out your item isn’t covered by your insurance policy, after a loss occurs.  Talk with your insurance agent to properly insure your jewelry collection.  Insurance may not be able to help with the sentimental loss, but it’s comforting to know that you can insure its value.