Will My Home Insurance Policy Cover Lost or Damaged Jewelry?

Jewelry is one of the most fragile and valuable items that any individual can own. As a result, it is more prone to theft than most of the other objects. In this article, we will discuss whether lost or damaged jewelry is covered by standard home insurance policies and the extent of coverage offered.

When Does Homeowners Insurance Cover Jewelry Loss or Damage?

Homeowners insurance only covers the loss or damage of jewelry (like a wedding ring) caused by one of the following perils:

  • Fire or lightning
  • Theft or vandalism
  • Hail
  • Smoke damage
  • Explosions
  • Volcanic eruption
  • Civil disturbances or riots
  • Falling objects
  • Water damage
  • Frozen pipes
  • Damage due to electric current
  • Damage due to the weight of ice or snow

However, if the damage or loss of jewelry is not caused by any of the events mentioned above, your insurance policy may not cover it. For instance, if your ring falls through the drain while cleaning, your homeowners insurance policy will most likely not cover it. Moreover, the typical homeowners insurance does not cover damages or losses caused by natural floods and some other natural disasters, such as earthquakes and mudslides. Therefore, if you want to protect your jewelry for most types of damage and losses you should have a scheduled all-risk jewelry endorsement added to your homeowers insurance.

To What Extent Does Your Home Insurance Cover Your Damaged or Lost Jewelry?

Ideally, most home insurance policies dedicate about 50% of their total coverage to personal property. However, jewelry is considered to be a special, high-value property that can be easily stolen or damaged. Consequently, it has a specified coverage limit among most insurers, ranging between $1,000 and $2,000. Unfortunately, this coverage offers very little protection to jewelry.

How Can You Increase Your Jewelry Insurance Coverage?

To increase insurance coverage for your jewelry, you should purchase another policy- that is, scheduled all-risk personal property coverage. This policy is also known as a floater or an additional endorsement. It enables the policyholders to increase their coverage limits for certain high-value properties such as jewelry, heirlooms, musical instruments etc.

The premiums to be paid for scheduled personal property coverage will depend on three primary factors:

  • The type of items you want to insure
  • The value of the item
  • The location of the item

Floaters are your best bet at obtaining robust coverage for your jewelry. This is because they offer coverage in more situations than the ones listed above. Moreover, floaters don’t have deductibles, unlike other personal property policies. While the typical homeowners insurance covers lost or damaged jewelry, it only does so in certain situations. Fortunately, with “floaters,” you can get up to the price paid or appraised value for your jewelry.  Since this is an all-risk coverage, it covers it for any loss or damage that is unintentional, and for which the policy holder’s actions or acquisition were not illegal.

Do you need more information on how to protect your jewelry? Contact us at Lou Aggetta Insurance Services in Pleasant Hill to get started on your tailored policy.