Many people fail to correctly insure expensive jewelry, thinking that it is automatically covered by their Homeowner’s policy. Although Homeowner’s policies do cover jewelry, the coverage is usually subject to much lower limits than the overall contents coverage. This “sub-limit,” is typically $1,000 to $5,000 for loss by theft of jewelry, watches, and precious and semiprecious stones. If your jewelry is worth more than your sub-limit, you should consider purchasing special insurance to cover it. Take the following steps to do a good job:
● Make an appointment with your agent to review your jewelry coverage. Bring as much information about the jewelry you own as possible, including any appraisals.
● If you have not had the high-valued jewelry appraised within the last 3 years, consider obtaining new appraisals.
● Make sure the appraisal has a description of the diamond’s four C’s—(a) carat, (b) cut, (c)clarity, and (d) color. The “carat” refers to weight. The “Cut” refers to the diamond’s shape (such as round or pear-shaped). The “clarity” refers to minor spots, lines, bubbles, or other natural imperfections. The “color” denotes the tint a diamond may possess. The more comprehensive your appraisal is, the fewer problems you will have if you ever need to make aclaim.
● Purchase a rider that can be added to your Homeowner’s policy. This rider (also available as a separate policy) provides broader coverage than the limited protection of a standard Homeowner’s policy.
● Think about keeping valuable jewelry you rarely wear in a safety deposit box at your bank.
● Every couple of years, review your jewelry protection with your agent, sooner if you sell or purchase new items.