What Homeowners Need to Know about their Insurance Policies and Expensive Jewelry
After purchasing any valuable jewelry, homeowners should contact their insurance agents quickly to update their policies. There is only limited coverage for expensive jewelry on a typical home insurance policy, so the owner may not receive the full value of the item if it is stolen or destroyed. Most home insurance policies allow coverage of possessions up to 50 percent of the amount of insurance chosen. For example, a person choosing insurance of $400,000 would have coverage up to $200,000.
There are limits for certain types of items. For example, an insurance company may offer a set dollar amount of coverage for stolen or destroyed jewelry. However, the amount may be much less than the jewelry is worth. If the insurer offers $1,000 for a piece of jewelry that cost $10,000, the homeowner will take a major loss. There are a variety of personal belongings categories with limited terms for reimbursement. All homeowners must be sure they read the sections of their policies where additional coverage and contents are specified. As a rule, accidental loss is not covered. This means a woman who loses her engagement ring will not be compensated.
If homeowners want to increase their policy limits to make sure theft and loss are covered, it is important to discuss additional coverage for valuable items with an agent. An agent can add a rider or specify the particular piece of jewelry. Written appraisals may be required for some items, so it is important to ask the agent if this is a necessary step in obtaining coverage. In most cases, a detailed receipt for the item is proof enough of its value. Once a value schedule has been created, the policyholder is fully covered for the item's total value in the event of theft or loss of any kind. Since there is no need for an investigation, this makes the process of filing a claim much easier. Also, there is no deductible for the specified item.
With extra coverage being very affordable, it is good for all homeowners with valuables to consider insuring them separately. A personal agent can make an assessment to determine the best option. As a rule, a home insurance policy does not put limits on electronics. Homeowners should make sure their valuable items, from jewelry to electronics, are insured in a way that allows for total replacement or compensation for their true value. To learn more about coverage options and how these special policy riders work, discuss concerns with an agent.
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