As you reflect on the joys of the season, it may be time to reflect on your insurance coverage as well. If you were fortunate enough to receive something sparkly for the holidays, you may need to consider a jewelry floater. A jewelry floater is additional insurance available to protect jewelry beyond the small amount of coverage and limited perils included in your homeowners insurance policy.
For example, if your jewelry is stolen, most policies will limit what can be paid in total and per piece, sometimes as low as $500 per item and a $1,500 total limit. Even worse, many policies completely exclude loss by misplacement or damage to the item itself. By purchasing a jewelry floater, you will be gaining protection for your scheduled jewelry at a much more appropriate value for the item, with extended coverage perils, and as an added benefit, there is often no deductible on these policies.
Coverage and Cost
Say for instance, you drop that new ring down the drain, or leave it in a hotel room. Your homeowners policy is not designed to protect you in these claim instances and will often exclude them in full. Hopefully, you have scheduled that ring on a jewelry floater! This would offer protection in both of those scenarios. Further, it will provide coverage if a bent prong leads to a lost stone or if the ring falls down the garbage disposal that decides to completely mangle the setting, both of these happen more often that you would think!
Most times, specific jewelry items are scheduled on the policy with the value confirmed by a recent appraisal or receipt. Keeping recent appraisals on file helps you prove the value of items in the event you need to file a claim. This can assist in reducing the risk of any potential disputes with your insurer at the time of a claim. Often times your carrier also has a jeweler that they work with that can duplicate your lost or damaged item in lieu of a payout, which means if you lose one earring of a set, they may be able to help you match up a replacement.
If you have jewelry pieces that exceed the limited coverage available in your mainline homeowners policy, but that are not expensive enough that you want to individually schedule them, a blanket jewelry policy may also be one to consider. These are often written on a $5,000, $10,000 or $20,000 “blanket limit” which does not require individual items to be named or appraised. One thing to note about blanket coverage is that it does typically specify the per item limit, so even if you have $20,000 in coverage, the most to be paid per item may be capped at a smaller amount, like $1,500.
Costs to insure jewelry is low, exceptionally low. On average, rates are about 1-2% of the items values. So, a $15,000 ring may be around $150 a year to insure, a very reasonable cost for priceless peace of mind! Contact Sentinel today to learn more about how we are dedicated to Safeguarding Your Success, and your valuables.