Christmas and Valentine’s Day are the two big jewelry-giving holidays, so let’s take a look at how that needs to be insured. You can usually purchase a warranty from your jeweler for the workmanship, but the jeweler probably isn’t going to be able to help you out if your wife’s new ring melts in a house fire.
Jewelry can be covered under your homeowner’s policy. You’d need to check your particular policy for the details, but let’s look the Centennial policy at one from one of our major carriers, RVOS. Jewelry falls under the personal property portion of your coverage, which is normally a percentage of the dwelling coverage. So if you have your house covered for $100,000, you might have your personal property at 60%, or $60,000.
If you choose to leave your jewelry unscheduled, then there’s a piece of that personal property pie that’s set aside just for jewelry. The default limit for that is $700. So if you lost every piece of jewelry you own in a fire, you’d only get paid $700. If all you wear is costume jewelry, then that probably won’t concern you too much. If you have a few nice pieces though, you’d want to get an endorsement to increase that unscheduled jewelry limit. You’d still have $60K in coverage on your personal stuff, but you’ve allocated a bigger piece of pie just for your jewelry.
If you have a large jewelry collection, or a few very valuable pieces, then you’d want to schedule your jewelry. To do this, you’d have to provide a list of the special pieces you want covered, along with their values. Items worth more than $1,000 require an appraisal, and you’d need to provide photos on items worth $5,000 or more. The coverage on these items would not be part of the $60K personal property pie because they’re listed separately.
Of course, all policies are NOT created equally. Some policies may have higher limits for unscheduled jewelry, and some may require you to schedule all jewelry. You’d need to actually read your policy in order to know for sure. If you’ve purchased a new diamond bangle bracelet for your wife, check with your insurance agent to make sure it’s approriately covered. The same goes for antiques, collectibles, art, and furs.