The average price of gold jewelry has more than tripled in the past 10 years, which means anyone who hasn't reappraised their rings, watch, or other high-quality items (like an 18K gold necklace) since it was first purchased or shortly after, may realize that there's a good chance it's underinsured. The rise in their value, not only with gold, but also with platinum and silver, will probably not be reflected by current insurance policies that insure these items. That is why it's not only advisable to appraise jewelry once every year but to also look at the type of insurance coverage that is protecting these precious items in the event of loss. One may be surprised that the right coverage is not in place.
Homeowners insurance offers limited protection
Most individuals automatically assume their basic homeowners insurance provides coverage for their jewelry. What they may not realize is that a homeowners policy, or a renters policy, does provide some coverage but only for a limited amount. Jewelry, like fine art, stamp collections, and other valuable items have a limited pre-set amount of coverage. Further, in most policies not all perils are covered. For example, a homeowners policy does not usually cover damage or loss of all or part of an item. What's more, these policies have severe limitations on coverage for theft, sometimes as low as $500. And then there's the policy's deductible.
Options available for high valued items
For higher-priced jewelry or the family heirlooms passed from one generation to the next, it is recommended that individual items are appraised and insured. This is done through a Personal Articles Floater, which can be written as a stand-alone policy or attached to a homeowner's policy. With this type of insurance, the coverage is generally very broad, covering all risks worldwide, with only a few exclusions.
There are several top-rated insurance companies that cater to this market within their private client services division that provide high-end homeowners insurance and other products. Premiums vary from state to state, and they can also vary among companies serving the same area. Often the best rates are secured by insuring jewelry with the same company that is issuing other policies including homeowners or auto. An independent insurance agency will be able to advise where to best secure coverage.
Most individuals automatically assume their basic homeowners insurance provides coverage for their jewelry. What they may not realize is that a homeowners policy, or a renters policy, does provide some coverage but only for a limited amount. Jewelry, like fine art, stamp collections, and other valuable items have a limited pre-set amount of coverage. Further, in most policies not all perils are covered. For example, a homeowners policy does not usually cover damage or loss of all or part of an item. What's more, these policies have severe limitations on coverage for theft, sometimes as low as $500. And then there's the policy's deductible.
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