Homeowners Insurance is your Jewelry Covered against Loss

Is jewelry covered under your homeowners policy? Well, the short answer is yes, but to what extent is it covered? The coverage for unscheduled jewelry is usually low, generally ranging anywhere from $1,000 to $2,500 per occurrence. (For example: If your jewelry limit under your homeowners policy is $1,000, then your insurer will reimburse you up to $1,000 for any covered claim loss you incur for jewelry, less your all perils deductible).

Why the low limit? One reason jewelry and other specific items such as securities, business property and silverware have specified limits is because it reduces the number of false claims. These low limits keep insured honest when reporting losses. They also prompt insureds to either increase the limits on these items or schedule them so that they are insured separately and with broader coverage.

Many home insurers’ policies have similar limits, but you should never take that for granted. It is always best to read your policy under the Personal Property section to determine the limits and conditions for which your jewelry is covered. Here you can ascertain the specified limit for jewelry, as well as other items. In general, all of the unscheduled items with specified limits are covered for the same perils as those stipulated for your Personal Property. So, for example, if your property under the Personal Property Coverage is covered for the perils of fire, lightning, explosion, etc., then those items with special limits will be covered for those perils, as well.

But what do you do if you have an item valued at a higher price than the limit under your homeowners policy? The best choice is to either insure the item under its own policy or schedule it under a Scheduled Personal Property endorsement. The former can be done by applying for a valuable items policy. This type of policy goes by several different names, depending on the insurer, but you can contact your agent or company and they should be able to steer you the right way. The latter is the same as a stand-alone valuable items policy, only it is attached to your homeowners policy as an endorsement. It literally becomes a policy within your policy, and has become an increasingly popular choice for both insureds and insurers. These two types of policies generally provide broader coverage to your valuable(s) and are easy to obtain. Depending on what you want to insure, you may need to submit a recent appraisal so that the coverage limit is determined.

So remember to always check your policy and stay informed.