When it comes to buying homeowners insurance, it can feel like a journey trying to wade through all the options and add-ons. Most of them sound important, but you might not be sure what they actually mean, and what they really cover.
One type of coverage that many people are confused about is jewelry and valuable items coverage. Unlike some types of coverage, jewelry and valuable items coverage at least has a straightforward name, so you know what you’re getting. But it’s not quite that simple. Read on to find out everything you need to know about jewelry and valuable items coverage.
What is jewelry and valuable items coverage?
Let’s start with the basics. As you can probably figure out, jewelry and valuable items coverage is a homeowners insurance add-on that covers your jewelry and other valuable items. With this type of coverage, you can get reimbursed if your jewelry or other valuable items are damaged, destroyed, lost, or stolen.
What is covered by jewelry and valuable items coverage?
Many different things can be covered under the umbrella of “valuable items.” It can change from insurer to insurer, so you’ll want to check any specific items with your agent before signing up for this type of coverage. But in general, jewelry and valuable items coverage can cover everything from wedding rings and expensive clothing to art, cards, stamps, coin collections, and even nice silverware.
How is it different from personal property coverage?
The answer to this question really depends on the insurance provider that you’re getting this type of coverage from. Some companies don’t offer jewelry and valuable items coverage, because those items are already covered in personal property coverage. Sometimes you just need to disclose what types of items you need covered when purchasing personal property coverage. But many companies simply don’t cover extremely valuable items with their personal property coverage.
Another difference is that jewelry and valuable items coverage oftentimes covers if an item is damaged by you, or if it breaks. With personal property coverage, you usually need an event to occur in order to receive coverage.
How it works
In general you have two different price points with jewelry and valuable items coverage: A per-item price, and a per-incident price. If, for instance, your coverage is for $5,000/$25,000, then that means that you’ll be covered up to $5,000 for each item that needs to be replaced, and up to $25,000 for the entire incident that led to the items needing replacement.
How much does it cost?
The cost of jewelry and valuable items coverage can vary greatly depending on how much coverage you need. But it’s usually a reasonable price, similar to other add-ons.
The value of appraising
One thing to be aware of when purchasing jewelry and valuable items coverage is that many items should be appraised first. Consider for example a unique piece of jewelry. It can be hard to prove how much that jewelry is worth after it’s gone, especially if you don’t have a receipt. So insurance companies might not give you as much money as they should in the event that it needs to be covered.
If you get the item appraised prior to purchasing this insurance, then the company will know how much it is worth, and how much money you’re entitled to.
What if it’s not enough coverage?
Jewelry and valuable items coverage can be great, but it’s not always strong enough coverage if you have some very valuable items. In that case, you’ll need to purchase insurance specifically for each item or collection through a valuable items insurer.