Home Insurance – Can Jewelry Be Insured?
Your home insurance coverage includes things like appliances, antiques, and jewelry. The most common mistake that a homeowner does is assuming that the coverage and protection extends to all the things that he owns. Generally a regular insurance policy can only provide general protection. This simply means that your wedding ring, antiques, and heirlooms are not fully protected if you are only covered by a regular home insurance policy. Jewelry is the most affected item, because almost all people own one and are usually involved in claiming settlements.
The coverage limitations you have for your jewelries depend on the home insurance you have. Usually your home insurance company has coverage limits for each item lost or damage that ranges from a thousand dollars to two thousand dollars. The company will only pay you the coverage limit that you signed in the contract. They also have deductibles that you are required to pay for when this happens. For instance, your coverage limit is worth a thousand dollars and the deductible has a fixed price worth five hundred dollars. Then you lost your jewelry or got it stolen, soothe calculation would be: coverage limit of $1000 minus deductibles worth $500, thus, leaving you with only $500. Imagine that your jewelry is worth fifty thousand dollars, the amount you received is way lower than its original plrice.
To avoid scenarios such as the one above-mentioned, it is best to include your jewelries and other expensive items in your coverage, though, it needs you to pay an additional fee. Any item that exceeds the coverage limit per item will have a separate rider to qualify for a full coverage. This rider is also known as floater coverage. Before insuring your jewelry, you need to appraise them. An appraisal is done to know the jewelry’s value and specifications. An appraisal gives the complete information and description of the jewelry. For diamonds, an appraiser looks at its cut, color, clarity, and the value. When claiming the amount you paid for it will be the amount paid to replace the jewelry. It is expected that the premiums that you pay will be bigger than you used to.
Even if you purchase the floater coverage, it doesn’t give you a hundred percent guarantee. There are insurance companies that will not cover jewelries that are stolen. They have very specific limitations when it comes to the price of the jewelry that they will cover. There are home insurance companies that require you to buy theft a coverage called theft endorsement. You will receive the benefits that you should have when you include this in your coverage.
You should know the ins and outs of your home insurance so that you will not worry on everything else. Getting a home insurance with floater coverage helps in making sure your jewelries are covered fully. Stolen jewelries will get proper replacement fee if you also include with you theft endorsement coverage. It’s time that you extend the coverage for your home insurance.