Posted on: January 31, 2014 | 0 Comments | by Ashleigh Cloud
Don’t rely on your homeowners policy alone to fully protect your jewelry. Although homeowners policies provide some coverage for jewelry, there are many limitations that could leave you empty handed after a loss, and here’s how:
- The personal property portion of the homeowners policy limits coverage for items deemed as special personal property, which includes jewelry, furs, fine art, collectibles, wine, guns, etc.
- This limitation varies from policy to policy, but can range from $500 to $10,000 depending on the insurance company providing the policy.
- A common misconception is that the limitation on special personal property is per item, however, the limitation is for the entire category.
- The loss of jewelry on the homeowners policy is also subject to your homeowners “all other perils” deductible, which can often be higher than the coverage provided.
- Causes of loss, or perils, are also restricted to same coverage available on your homeowners policy, which doesn’t provide coverage for flood, breakage, or mysterious disappearance.
- Another restriction is the coverage territory. Most homeowners policies only offer coverage to your personal property while in the United States of America, its territories or possessions, Puerto Rico or Canada.
With all the coverage misconceptions and restrictions, the smart solution is purchasing a Valuable Articles Policy, which offers broader coverage on a world-wide basis. Many of the benefits include:
- You determine the value of each piece and insure your valuables for what they are really worth. This can be what you paid for them or the appraised value.
- You will receive 100% of the agreed value at settlement to either repair or replace the item or keep the cash…it’s your choice.
- You can choose blanket coverage or scheduled/itemized coverage.
- You are not required to submit an appraisal on every piece. Appraisals are usually required on especially valuable items.
- You can rest at ease with replacement cost coverage. If you experience a loss to a scheduled item that can be replaced, the insurance will pay up to 50% more than the insured amount if the market value, just before the loss, was greater than the amount listed on the policy.
- You can lose one earring and be reimbursed for the pair or set.
- You have world-wide coverage so you can take jewelry on vacation or leave pieces in another home.
- You don’t have to pay a deductible.
- Your valuable possessions will be protected against “all risks,” including mysterious disappearance.
- You have automatic coverage for items newly acquired within the previous 30 days to give you time to contact your agent to get it protected.
If you would like more information regarding properly insuring your jewelry, please contact your Swingle Collins & Associates Personal Risk Manager.
Swingle, Collins & Associates specializes in homeowners insurance and renters insurance coverage. The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for condominiums, flood, or earthquake insurance please contact your dedicated risk manager to discuss the benefits and services of personal homeowners insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.