Are your jewelry and high value items protected by your homeowners insurance? The answer is yes and no.
For the sake of illustration, let’s focus on jewelry. Although Gilbert AZ was voted one of the safest places to live in AZ, and the 24th safest in the US, it is still important to make sure your high value jewelry items are protected.
Most of your common homeowners insurance policies will replace stolen jewelry up to set amount ranging from $1000 to $2500. This amount is also subject to the selected policy deductible commonly set at $500-$1000. The jewelry coverage on the policy can also be set at agreed value, in which the insurance company will replace the jewelry at a market price instead of the purchase price or appraised value. The lesson here is that you could possibly get a rather skinny check to replace a nice $5000 engagement ring. More advanced policies will allow you to expand the base jewelry coverage to a higher amount and even have a separate deductible for jewelry. Get all the details for there still might be a per item maximum and the settlement is still agreed value.
The best way to protect your valuable jewelry is to obtain an updated appraisal and schedule the jewelry separately on your policy. This will cover the full value of the jewelry in question and it is not subject to the policy deductible. This type of coverage usually covers mysterious disappearance as well, so if you just plain lose the jewelry, you are covered.
Now if you have a large jewelry collection such as a few $20,000 Rolex watches, a standard home policy might have limitations on how much property you can schedule in relation to your overall dwelling coverage (part A coverage). In this case, a PAF (personal articles floater) might be your best bet. With this standalone policy, you are able to schedule a much larger amount of jewelry, and you can also add a deductible to control costs. It is always good practice to obtain a new appraisal, as the values of most precious metals are much higher today than a couple of years ago.
You have heard it said, it is easier to read a book and learn, than gain the knowledge through the school of life. Don’t be disappointed by a measly check when your jewelry turns up missing, and at least get a quote on jewelry coverage from your insurance agent or company.