A few years ago my wife gave me a watch for my birthday. It's a simple modest three-handed Bulova and I was ecstatic. It was the best gift I ever received. It was narrow and elegant and would be a perfect addition to my attire in my budding legal career. What I did not know then is how consumed by the watch world I would be. I became so fascinated by the small watch that in the coming years I would buy and buy several watches from Tag Heuer for the famous Swiss brand with the 5-point crown. Then the problem arose, suddenly I had some uninsured jewelry.
Many people are relieved to find out that theft is generally a covered cause of loss in their home insurance policies. This protects the contents of your home if you are ever exposed to theft. What many do not know, however, is that there are special limits when it comes to jewelry. Each insurance policy is different, but a standard policy can place a special liability limit on jewelry between $ 1
Over time, most people will collect a collection of jewelry that exceeds the specific limits of liability. Should a theft or other loss occur, it would be devastating to discover that you do not have adequate coverage.
To make sure you have adequate coverage for your jewelry, talk to your insurance agent and see what the policy is going to cover. There may be a supplement or a rider that you can buy that increases the special limit of liability for jewelry. Another option is to take out insurance on the jewelry itself. A home insurance policy can cover theft offenses that occur in your home, but many jewelry thefts occur outside the home. Getting an insurance policy on jewelry itself can help cover these losses that a homeowner will not make.
An excellent post on this topic is, Insurance agents and policyholders need to plan jewelry for better coverage who noted this:
Sublimits for certain classes of expensive personal property with homeowners exist because the policy is written and priced for "average" exposure. Anyone who has articles that exceed the limits in the policy is considered to pose a risk that is greater than the "average". Due to the sensitivity to theft and "mysterious disappearance", the premium for insuring jewelry in particular can be significant, which can give some insured other thoughts about scheduling. However, there are some benefits to scheduling the property. First, as mentioned above, scheduling provides open danger coverage.
The coverage for personal property on homeowners is on a named risk basis, so a woman whose toddler throws her diamond engagement ring down in the trash would not find any coverage under her homeowner. policy. The only excluded causes of loss that apply to scheduled jewelry are wear, gradual deterioration or inherent cargo, insects or pests, war or nuclear risk. Gold, for example, will disappear after a while (as when a gold ring is worn for a long time), but for the most part the coverage is wide enough to enable virtually anything that can happen to jewelry. By scheduling, jewelry is even covered for losses due to flooding or earthquakes.
Scheduling jewelry also provides some coverage for newly acquired jewelry if jewelry is already insured – the lower of 25% of the insurance amount for that class, or $ 10,000. The insured must inform the company within 30 days of any acquisition and pay any additional premium from the date of acquisition. This coverage does not extend beyond the insurance period.
The lesson is quite clear:
Policyholders should schedule jewelry and other collectibles on a separate form of coverage that completely protects the expensive and sometimes invaluable items. Insurance agents and brokers should ask about the need and place this coverage as an internship issue.
Even if you are someone who does not have jewelry, there is probably content in your home that is not covered or limited by your insurance. . As a general tip, it is important to spend time with an insurance agent and tell them about your unique coverage needs to ensure that you are fully covered if you suffer a loss.
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