Personalized jewelry can be extremely valuable. For example, the average cost of an engagement ring in the United States is $ 7,829, according to Brides.com . A string of South Sea pearls can be worth more than $ 100,000, according to The Pearl Source . If jewelry is lost or damaged due to a covered hazard, such as theft, they are covered by homeowners' insurance, up to specific limits.
What are the usual insurances?
Your homeowners insurance will likely compensate you for lost or damaged jewelry, up to the stated insurance limits, if the loss was caused by one of the following common hazards:
- Explosions  Smoke damage
- Hail or windstorms
- Falling objects
- Vehicles or aircraft caused damage
- Volcanic eruption
- Water damage
- Electric shock damage [1965notincluded] a homeowners policy?
Your homeowner's insurance does not cover loss or damage to valuable jewelry unless it was caused by a covered hazard. For example, if you drop a diamond ring down the drain and are unable to retrieve it, your insurance company is unlikely to compensate you for the loss. The same applies if you happen to damage a piece of jewelery, for example by exposing it to harsh chemicals when cleaning the oven. Because regular homeowner policies do not cover flooding, jewelry that disappears or is damaged in a flood is not covered.
How much jewelry coverage will a homeowners policy provide?
Regardless of the insurance limits for your homeowners insurance, you can not apply the full amount to jewelry coverage. Your policy sets personal property limits at a certain percentage of the total policy – usually around 50%. However, because this type of property is considered to be easily stolen and of high value, many homeowners' policies set coverage limits specifically for jewelry, often as low as $ 1,000 or $ 2,000.
How do you get more insurance coverage for valuable jewelry?
If you have valuable jewelry, you may want more coverage for this property than regular homeowners insurance provides. One way to get it is to purchase a certificate for scheduled personal property coverage. The cost of this extra coverage depends on various factors, including the location of your home and the number and value of the items you want to insure. In addition to increasing your jewelry coverage limits, this type of approval (also known as a float) can protect you from certain additional losses, such as accidentally losing your engagement ring.
Jewelry protection insurance
Another option is to buy a separate jewelry protection insurance. This type of insurance is separate from your homeowners insurance, and any claims against it will not affect your future home insurance premiums. The jewelery protection insurance covers all events, including accidents and damage caused unintentionally, up to insurance limits based on the valued value of the jewelery. The cost is also based on where you live and the number and value of items that are insured.
Our agent can advise you on the various options and help you find the best coverage to protect your precious jewelry.