Love is in the air…and it seems like we see more of it this time of year. Who doesn’t love a surprise that comes in a velvet box or glistens in the light? Our job is to make sure that those precious gifts are protected as much as possible. While we can’t protect your jewelry from wear and tear, we can protect them from the less predictable causes of loss (or what we like to call “perils”).
The average homeowner policy has limitations for unscheduled jewelry when the peril is theft, which is most commonly a limit of $1,000, and is subject to your policy deductible. In addition to this limit, the homeowner policy provides no coverage for mysterious disappearance or missing stones, which are two of the more common jewelry claims. By scheduling your jewelry, you will have open perils coverage and will not be subject to a deductible.
There are different ways to schedule your jewelry. One way, is on a standard loss settlement basis. This means the company can choose to pay you the appraised value, or replace it with similar like, kind, and quality. Another way is agreed value. This type of coverage would allow you to receive the appraised amount of your item; if it were a total loss (this coverage is more expensive). You may elect to have blanket coverage. This is ideal for someone who does not want to have to itemize their jewelry. Your coverage is a set total amount with a per item limit. Example; a customer has several pairs of earrings that are valued between $500-$1,000. The customer has a $10,000 blanket limit (this amount should not be less than the total value of all of the items desired to be covered). The blanket coverage then has a per item limit of $2,500. This means the policy will not pay out more than $2,500 for one single item, and (if applicable) the total loss payout cannot exceed $10,000.
Some helpful tips for you to make sure you have the best coverage for your jewelry:
- Review! If you have scheduled jewelry; review the schedule at least once a year, and get updated appraisals every three years. In some circumstances, the jeweler you purchased from will give you an updated appraisal at no cost or inconvenience to you.
- Protect! If you have a large schedule or a lot of high valued personal property, it may be smart to invest in a burglar alarm system.
- Reduce cost! If you have jewelry you don’t wear regularly, place it in an off site vault or safe deposit box, these items are less expensive to insure while in vault.
- Travel smart! If you must bring jewelry on a vacation or trip, don’t pack it in your luggage. Carry it on with you in your purse or carry on luggage, and make sure your accommodations have a safe.
- Ask your agent what other additional coverage’s and endorsements are available to you regarding your valuable articles.