Devoted to the Insurance industry and all thing related

As February 14th approaches I’m sure many people are considering or have already purchased jewelry for their significant other.  If you have spent over $1,500 in jewelry you might want to consider some insurance to protect your goods.  Your homeowners or renter’s insurance will only cover up to a certain amount and “will not cover a lost item” according to kcra.com.

A very informative article about jewelry talks about the importance of understanding the difference between scheduled and unscheduled property:

Unscheduled property (jewelry not specifically listed) is typically included in basic homeowner or renter’s policies under blanket coverage. There is a usually a deductible (typically $500) and a maximum amount of coverage (typically $1500) although these amounts can vary with the specific policy. This type of coverage does not require an appraisal but sales receipts, written descriptions or photos are beneficial in proving the items existed and estimating their replacement value.

 

Scheduled property (jewelry specifically listed) is included in a floater, rider or endorsement to homeowner or renter’s policies. Jewelry insurance is also available with a separate policy, from a company specializing in jewelry insurance. For scheduled property, the insurance appraisal is vital because it describes the jewelry item and provides the “insured value” that is used in determining the premium you will pay to insure the item each year. Most scheduled property policies do not have an automatic appreciation adjustment as is common for the house and other unscheduled property. Therefore, even if it might cost 50% more to replace an item in five years, the “insured value” is still only that stated in the appraisal.

Another important aspect of jewelry insurance is whether “the policy allows replacement or agreed value settlement.”  More than likely your going to want to have an agreed value policy as “the settlement amount is stated in the policy whereas replacement value allows the insurance company to replace your jewelry or make a cash settlement based on the insurance company’s cost to replace your item.”  

Accurate information on the appraisal is the key to a more favorable outcome if you do indeed loose your jewelry.  So lets be careful with our precious gems this Valentines Day and for years to come.