Your standard homeowners insurance policy includes coverage for jewelry and other precious items like watches, coins, and furs. These items are covered by perils included in our policy, such as fire, theft, and vandalism. However, there are limits of liability for valuable items.
Let’s say a fire in your home causes damage to your jewelry collection; or your home is burglarized while you’re away on vacation and thieves manage to steal the $8,000 ring that has been in your family for several generations. Your insurance will cover part of its value — up to a maximum limit defined by your specific policy.
But for how much does your homeowners policy cover you?
It might provide you with, for example, $250,000 worth of content coverage, but your high value items aren’t covered by the same amount. Jewelry, considered high value property that can be easily lost or stolen, is typically covered up to between $1,000 and $2,000.
That means your homeowners policy would provide coverage up to the first $2,000 of value, leaving you stranded to cover the remaining $6,000 of your family’s $8,000 ring of pocket. Not to mention, if other pieces of jewelry are stolen or damaged too, there is no further protection.
But, there’s more…
If your ring slips off your finger and falls down the drain, it’s not covered by your homeowners policy at all! That’s because the loss isn’t the result of something explicitly listed in your policy (fire, theft, etc.). Likewise, misplacing a piece of jewelry or damaging it by accident won’t be covered either.
OK, enough with the bad news. So, how do you increase coverage to protect your jewelry and other high-value items?
Assuming your jewelry and other possessions are worth more than what is set forth in your homeowners policy (between $1,000 and $2,000), you can purchase a floater — or endorsement — as an add-on to your policy. This raises the coverage limits of specific high-value items that you own and offers the broadest protections for your valuables. Floaters cover losses of virtually any type, including those your homeowners policy doesn’t cover, like accidental losses. Premiums for floaters depend on the types of items covered, how much the items are worth, and where you reside. There can be no associated deductible for items covered by a floater.
If you’ve recently purchased or received a valuable piece of jewelry, please keep this information in mind. Contact our insurance specialists at 845-986-1177 to learn more. We are not only your business, home, auto, and life insurance solutions provider and partner — think of us as your financial protectors — serving Warwick, Greenwood Lake, Florida, Goshen, Pine Island, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.