Most homeowners assume that all their belongings are completely covered under their homeowners insurance policy. While this is mostly true, this does not mean all items are fully covered for their value. Many standard policies only cover up to a certain amount, generally around $1500 for lost or stolen valuables. That is why experts argue that having your jewelry insured is a better option. Did you know that the average diamond ring is worth more than $6,000?
What Is Jewelry Insurance?
Jewelry insurance recoups the losses that your homeowners’ insurance cannot help with. The best options are to add a floater policy to your existing one. A floater’s policy will protect against any accident that could happen, including theft and dropping your ring down the sink (hey, it happens).
How Much Is It Going To Cost?
The actual policy is going to cost you maybe 1-2% compared to the total value. Say, that you have a piece of jewelry that is worth more than $15,000. It is going to cost you about $500-600 to insure it, give or take. That is an expensive policy. The floater policy is going to offer discounts that will make the yearly premiums worth it. The other bright side is that the company will go to greater lengths to protect you if they see you are proactive. That means if you take measures to safeguard your jewelry beyond the basics, the insurance company is more likely to offer incentives to keep your business.
How Do You Get An Appraisal?
This is the first step for ensuring your valuables. An appraisal will also give you an idea of how much your jewelry is worth. It easy to give a bird’s eye view of the situation. However, an appraiser will give you a true total.
Your next step is to file the appraiser’s paperwork with your insurance company. They will need the information if you file a claim. Remember that they are not going to take someone at their word. You’ll need to do that every 2-3 years. Things change and markets fluctuate with the prospective value. You need to be sure the initial value is still relevant. Do not forget to file this with the company too.
Let’s say that you had your appraisal in 2017 and 2019 and you just had an incident happen this year. Did you file the paperwork? The company is going to go by the last appraisal when calculating the value. Your jewelry might have been valued at $5 million in 2017, but, in 2019, it was valued at $2 million. That is the number they go by.
Protecting your jewelry, no matter how expensive and valuable it is, will give you the peace of mind you need. To assess your jewelry and valuables coverage and ensure you are protected, contact us at 772-287-3625