Whether you own a piece of heirloom jewelry or a valuable vintage watch collection – you should know the value and have the proper insurance to cover it in case of theft or loss. At Power Risk Management we offer several options to ensure your valuable jewelry is protected.
What you need to know about Jewelry Insurance
What is covered under most homeowners’ insurance policies
Most homeowners’ insurance policies have a basic limit of $1,500 for the loss or theft of jewelry. So, if your home burns down and all your contents are lost – $1,500 is all you would recover. Same for theft, so it’s important to have an insurance rider or schedule specific items to ensure you can recoup the losses of your valuable items. You can schedule individual items or get blanket coverage to cover multiple.
Blanket versus Scheduled Coverage: If you have several valuable items worth under $1,000 each, getting a blanket coverage insurance rider makes sense. Most blanket riders do NOT require appraisals, like an individual scheduled endorsement would and typically there is no deductible. For items valued at several thousand dollars and above, we always suggest having a recent appraisal to ensure the correct replacement value and getting a scheduled insurance endorsement. Some carriers require a deductible, others do not.
What does “Mysterious Disappearance” mean on my insurance policy?
Mysterious disappearance means that if your jewelry is missing you don’t know if you lost it or if it was stolen or even misplaced. Most homeowners’ insurance policies will deny a claim for mysterious disappearance, but typically a rider or endorsement for scheduled jewelry WILL cover you if your diamond ring goes missing and you aren’t sure why. As all policies and carriers differ – it is important to understand the language of your policy to know what you are and are not covered for.
Tips to keep your jewelry safe:
- Take a picture or video of your jewelry and save it to the cloud – this will help you document your items for police and insurance adjusters in case of accidental loss or theft.
- Keep your items in a secure location such as a home safe or bank safety deposit box if you don’t wear them regularly
- Make sure you have recent appraisals – the value of fine metals and gems fluctuates; we advise getting appraisals every 2-3 years.
- Keep a current home inventory, including video of anything of value. Make sure it’s updated when you buy, sell or acquire new pieces of jewelry.
- Talk with a licensed insurance agent who can help determine the right insurance for you.
Whether you are recently engaged (congratulations!) and need to insure your ring or you have several pieces or new or heirloom jewelry, give us a call at Power Risk Management to secure the proper jewelry insurance coverage and peace of mind.