The holidays are full of beautiful things like sparkling snowflakes, twinkling lights, and maybe even a glittering gemstone under the tree! If you’re lucky enough to have some new jewelry in your home this New Year, you’ll want to consider the best way to insure your bling.
You may need to purchase additional coverage. Your homeowner’s policy covers valuable items such as jewelry, furs and fine arts, but only up to set amounts. If the cost of replacing those items exceeds that limit, you will want to purchase scheduled personal property coverage, either as an endorsement on your homeowner’s policy or on a separate personal articles floater policy. This ensures you are covered for the full value of the item. Scheduling an item may also provide broader coverage and may not be subject to your deductible.
Do you need an appraisal? You may need an independent appraisal if the insurance company requires it or if you don’t know the value of your jewelry. Each item should be listed on paper with a description and value.
What kind of coverage is offered? You’ll want to determine if items are covered no matter where they are (whether they’re at home with you, or on an international trip), and if the policy offers full replacement cost. You also should ask if you will be required to replace your jewelry if lost or stolen or if you can simply keep the cash settlement.
Of course, it’s important to store your jewelry securely when it’s not in use; a safe in your home or a safe deposit box is best. We want your jewelry replaced if lost or stolen, but we’d prefer your sentimental and valuable pieces stay with you and your family for years.
