Jewellery is probably one of the most precious objects you own, yet it's also delicate and easily stolen. Unfortunately, this implies that it is frequently covered by homes insurance in a less comprehensive manner than conventional personal property.
- When does homes insurance cover jewellery?
- How much jewellery is covered by a house insurance policy?
- When should you purchase a separate jewellery policy?
- Best jewellery insurance providers
- How to Submit a Jewellery Claim
When Does Homes Insurance Cover Jewellery?
Your homes insurance will cover jewellery that is lost or destroyed as a result of a covered risk, such as theft or fire.
For example, if your house is burglarized while you are away on vacation and criminals take a jewellery that has been passed down through generations, your insurance will pay a portion of the value – up to a maximum amount established by your individual policy.
Perils Commonly Covered By Insurance
- Theft
- Either lightning or fire
- Windstorm or hailstorm
- Aircraft-caused damage
- Explosions
- Riots and civil unrest
- Smoke harm
- Vehicle-caused damage
- Vandalism
- Objects falling from the sky
- The eruption of a volcano
- The weight of snow, ice, or sleet causes damage.
- Overflowing water from plumbing, heating, or air conditioning
- Cracking, tearing, and burning of the water heater
- Electrical current damage
- The freezing of pipes
If the loss or damage is caused by a risk not described above, your jewellery is unlikely to be covered by homes insurance.
For example, if your ring slips off your finger and goes down the drain while you're cleaning, your insurance policy will not cover the loss since it wasn't caused by a risk specifically stated in your policy. Similarly, misplacing or breaking jewellery – even by mistake – will not be covered by your homes insurance.
Furthermore, if your jewellery is lost or destroyed in a flood, you will need to get a separate flood insurance coverage because a regular homeowners policy does not cover damage or loss caused by a natural flood.
How Much Jewellery Is Covered By A House Insurance Policy?
While your house insurance may provide you with $400,000 in coverage, you cannot just apply that amount to your jewellery. Personal property coverage accounts for around 50% of total insurance coverage in most plans.
However, because jewellery is considered high-value item that is readily lost or stolen, your policy's coverage limitations are normally stated — typically between $1,000 and $2,000.
For example, if you had a $15,000 diamond engagement ring, your house insurance will only cover the first $1,000 to $2,000 in worth. Most of the time, such coverage isn't enough to safeguard more than one or two pieces of jewellery, especially if some of them are highly precious or you have a vast collection.
How To Get More Jewellery Insurance
If the value of your jewellery exceeds the limits of a standard homes insurance policy, you may acquire an extra endorsement or floater. This is a method of increasing the coverage limits of certain high-value objects you own, such as priceless family heirlooms. It is also known as scheduled personal property coverage.
Premiums for floaters are determined by the sorts of objects you've added, the value of the items, and your location. There is no deductible for things covered by a floater, unlike personal property coverage offered by your homes insurance.
The extra protection that certain floaters provide is an added bonus. Some floaters protect you if you lose a ring or leave it at home while on vacation. Because it is not a stated risk, personal property coverage under your home insurance policy would not cover you in that instance.
When scheduling the things for which you want to increase coverage limits, your insurer will almost certainly need you to have them appraised, unless they were recently acquired and you have receipts.
When Should You Purchase A Separate Jewellery Policy?
Jewellery protection insurance is a separate insurance policy that insures just jewellery. Jewellery protection insurance, like scheduling your jewellery with a floater, protects your jewellery from typical insurance dangers. However, unlike a floater, claims paid against a jewellery protection insurance policy do not qualify as a claim against your house insurance.
The following table compares a normal homes insurance policy, a floater, and jewellery protection insurance:
| Type of coverage | Covered perils | Limit | Deductible | Premium |
| Homeowners insurance | Listed perils only | Typically capped between $1,000 and $2,000 | Homeowners insurance deductible | No additional premium |
| Floater | Listed perils, plus accidents, maybe other risks | Appraised value | No deductible | Premium based on value, items covered and area of residence |
| Jewelry protection insurance | All events, accidents and unintentional damage | Appraised value | May have a deductible | Premium based on value, items covered and area of residence |
If you wish to cover high-value or at-risk jewellery, such as a multi-carat diamond ring, jewellery protection insurance is an excellent alternative. As an extra benefit, although claims against your house insurance or an additional floater may have an influence on your premium and future insurability, jewellery protection insurance is a distinct policy that protects your home insurance rate from any claims.
Most jewellery insurance policies charge between 1% and 2% of the total insured value, which means $10,000 of coverage might cost as little as $100 each year.
Best Jewellery Insurance Providers
Many homes insurance providers let clients to enhance their jewellery coverage limit by obtaining an endorsement. Furthermore, some businesses enable clients to extend their coverage limit without adding an endorsement, but at a lesser coverage level. Homeowners should consider what form of coverage is suitable for their specific circumstances.
The following are some of the greatest jewellery insurance providers.
Lemonade
Through its additional coverage endorsement, Lemonade offers policyholders an extraordinarily high coverage maximum of $50,000 for jewellery. Other insurance companies with comparable endorsements often do not give such a high coverage level. The endorsement is ideal for insuring a single pricey piece or a collection of jewellery.
Progressive
Progressive homes insurance policyholders can add jewellery coverage as part of a scheduled personal property endorsement or as a standalone policy. The endorsement does not impose a deductible before coverage begins. If you're happy with your existing house insurance provider, Progressive also provides jewellery protection as a separate policy with a deductible. Progressive typically costs 1% to 2% of the entire value of your jewellery for one year of coverage.
State Farm Insurance
State Farm is an excellent option for folks who believe they want jewellery insurance but do not require a large coverage level. Under State Farm's regular homes insurance plans, jewellery coverage limitations begin at $2,500. However, according to our example rates, increasing your coverage limit to $5,000 will only cost you an extra $17 per year.
How To File A Claim For Damaged Or Lost Jewellery
If your jewellery is taken, you should first report the incident to the police. Make careful to offer as much information about the stolen jewellery as possible, and seek a copy of the police report for your insurance. If your jewellery is destroyed due to a cause covered by your insurance coverage, take photos of the damaged items as well as the source of the damage.
The next step is to call your homeowner's insurance company. If you have separate jewellery protection insurance, you must contact the insurer of that policy rather than your house insurance provider. When you call your insurance, you will be required to provide information about what occurred to your jewellery. You may be required to pay a deductible before commencing the replacement or repair procedure, depending on the type of coverage you have.
Your insurance may insist that you utilise a jeweller or another firm of their choosing. With a jewellery protection insurance coverage, your insurer will allow you to have repair or replacement work done at a jeweller of your choosing, and will replace the missing or damaged item with the same kind and grade of jewellery. The assessed worth of your jewellery after you pay your deductible, if your policy has one, is the amount covered by jewellery protection insurance.
Methodology
Lifeinsuranceterms.net gathered sample rates and examined policy choices from three major home insurers to identify the top homeowners insurance providers for jewellery coverage: Lemonade, Progressive, and State Farm.