If you have a valuable piece of jewelry, you have a significant asset. However, accidents can happen at any moment. What happens if your jewelry is damaged is stolen? Here is a look at why jewelry insurance is an asset.
Even if you put your jewelry in a collector’s box, it is still at risk if your property is damaged in a fire or someone breaks in and steals your property. Be aware that a standard homeowners policy will not cover any damage to your valuable jewelry. That’s why you should consider the benefits of jewelry insurance.
Adding Extra Coverage to Your Home Insurance
Your standard home insurance coverage protects your jewelry if it is damaged by a fire, burglary, or inclement weather. However, your policy will likely include a specific dollar amount limit if your rare valuables are stolen. The dollar amount may be relatively low because jewelry is considered easy to steal. You can increase your coverage limits, but there is no guarantee that the amount will be high enough. You want to avoid a situation where your home insurance won’t cover the loss of expensive jewelry. If you choose to file a claim for the stolen jewelry, your insurance will only kick in after you have met your deductible.
Choosing a Standalone Policy
Standalone policies are available through companies that specialize in insuring jewelry. Purchasing a standalone policy covers you if you accidentally lose your jewelry or part of a special set. You can even add travel coverage to protect yourself if your jewelry is stolen or damaged while you wear it on vacation. You can also avoid having to pay a deductible before your coverage kicks in. Specialized jewelry coverage can also cover special cases such as a chipped diamond or broken clasp.
Before purchasing coverage, have your jewelry appraised. Generally, the annual coverage costs 3% of the jewelry’s appraisal value. Having a standalone jewelry insurance policy means that you won’t have to worry about the rates on your other policies being impacted.
You also have the option to supplement your homeowners’ coverage with a floater. A floater covers jewelry that goes beyond the limits of your home insurance. A floater itemizes each piece and outlines which losses are excluded from coverage. With a floater, you also don’t have to worry about a deductible. A floater also covers more scenarios than regular home insurance. For example, a floater may cover accidents such as dropping your jewelry down a drain or misplacing your jewelry somewhere. Before purchasing a floater, you’ll need to have your jewelry appraised. Also, be aware that floaters cover items wherever they are.
Things to Consider
Regardless of the type of jewelry coverage that you choose, keep copies of every purchase. Take pictures of your jewelry. Always keep your jewelry in a safe place. In addition to a safe deposit box, put your jewelry in a place where it’s out of sight.
Obtaining jewelry is one of your most valuable assets. In order to fully cover these valuable assets if something goes wrong, jewelry insurance is a good option. Our experts here at East End Insurance Agency will help you assess your options and find the coverage that takes care of your valuables.