One of the questions we will always ask a Texas homeowner is around their jewelry collection. People pony up some big dollars for engagement and wedding jewelry and then we can talk about what happens on the fifth or tenth anniversary. With gold prices at a great level, the value of that family heirloom or recent gift has taken on some extra oomph! If something was to happen to them, what is my home insurance policy going to cover?
Jewelry is one of those items that is subject to a sub-limit. That means that you will be capped in how large of a claim that you can make if the precious item is stolen from your home. A majority of Home Insurance policies will have a top end of $1,000 or $1,500 that they will replace for a single item. And many also have a cap on how much jewelry that they will replace in total for a single loss. So if you went large on that engagement ring, what do you do? The reality is that you have two choices. You can either buy additional blanket coverage or you can schedule it as a line item. Let's investigate the differences.
Adding blanket coverage can take care of a larger collection of items in the event of a loss at your home. It will generally be written in increments of $1,000 and how much is available in total will vary by carrier. There are a couple of drawbacks to the blanket coverage. You will potentially still be faced with a per item maximum, so you will want to double check on that front. The second, and larger drawback, is that you will usually not be covered for what is mysterious disappearance coverage on those items. That means if you lose your ring in the ocean at the beach, you will not be able to replace it under your policy. The positive side of this coverage is that it is very cost effective to add to your policy. If you have a large number of items that are of lesser value, it is a great way to protect them. Just make sure you have a list of items, their value, and any receipts/documentation that you have for the pieces in your collection.
A floater, or scheduled item, is the most comprehensive way to cover your jewelry. This will allow to list each individual high value item individually. You will need either a bill of sale or appraisal that was conducted inside the last three years for each item being listed. Pictures are always preferred as well. The great news is that these kinds of endorsements on a homeowners insurance policy mean that mysterious disappearance is in fact covered. Traveling to NYC and your ring slips off your finger into a subway grate? No worries. You can get it replaced. The lone drawback on this coverage is that it can get expensive as the value escalates.
In the end, protecting your jewelry from loss doesn't have to be super complicated. But you do have to take action! If you've got items that you aren't sure are covered, talk to an independent insurance agent at Insurance For Texans today to find a policy that matches your life.