Does Homeowner’s Insurance Cover Jewelry?
Does your homeowner’s insurance cover jewelry? Chances are good that it does, but there’s a catch. Most policies only offer basic coverage, so the dollar value isn’t very high. If your jewelry collection is worth a pretty penny, your current policy may not be enough to cover it all. Here’s where the jewelry floater may be perfect for you.
What is a Jewelry Floater?
A jewelry floater is supplemental coverage for your jewelry.
Who Needs a Jewelry Floater with their Home Insurance?
The answer to this question depends on three things:
- What is the current value of your jewelry?
- Are you buying more jewelry soon? After all, Valentine’s Day is this month.
- What does your current policy cover?
Let’s say you currently own about $3,000 worth of jewelry, you’re about to buy a $500 ring for Valentine’s Day, and your policy only covers $1,500. In that case, you may want to consider a jewelry floater since your current coverage only covers $1,500 of the $3,500 total value.
On the flip side, maybe you own $1,000 worth of jewelry and the necklace you’re buying this month is worth $300. In that case, your $1,500 worth of coverage is more than enough.
That said, there are other factors to consider besides just the dollar values.
What Does a Jewelry Floater Cover?
Every policy is different, so it’s hard to generalize, but one big thing to think about is accidental loss.
Most homeowner policies don’t cover accidental loss. For instance, if you go hiking and your ring falls off, your policy will most likely not cover accidental loss. You’ll need to pay completely out of pocket to replace it. The alternative, a jewelry floater, may cover accidental loss. In that case, the insurance company may pay for the new ring.
People lose jewelry all the time. Sometimes it goes down the sink, tub drain or toilet. Other times it just falls off while you’re walking down the street or at the grocery store. You just never know.
If you choose to schedule your jewelry so it’s covered, you’ll have more peace of mind that your investment is protected.
What Does it Mean to Schedule Individual Valuables?
When you purchase a floater, you’re essentially “scheduling” your valuables. This means you’re protecting them from loss, but there are a few steps involved. Before you’re able to cover the items, you need to have them professionally appraised. This verifies the items you’re covering are worth the value you claim on the insurance policy.
Ask your insurance company for a reputable appraisal company or do a search on Google to find one in your area.
The Pros and Cons of Jewelry Floaters
Just like any insurance policy, each side of the coin has one main pro or con.
The pro of investing in a jewelry floater is peace of mind. You paid a lot for your jewelry, and this additional coverage will help you sleep at night knowing your investment is protected.
The con is the cost. Some people choose to forego a floater because they don’t want to pay the premiums involved.
For some personalized advice, just send us an email at info@partnersdirectins.com or give us a call at (877) 600-7347. We look forward to helping you!
Courtesy of Cuselleration
