It is a common assumption that homeowners make. But does your homeowner’s insurance automatically cover your jewelry? The best person to answer that question is your insurance broker. It is possible that the value of your jewelry falls within the coverage limits of your policy. However, it is best to know upfront what is covered and what is not as well as the requirements your insurance company may have for filing a claim involving jewelry.
For example, certain insurance companies require proper documentation on the value of your jewelry before they will pay a claim. If this is the case with your policy, it is important to obtain an appraisal now and file it somewhere safe. Jewelers will typically provide a free appraisal when you purchase your jewelry so be sure to ask.
Many insurance companies cover jewelry under a blanket coverage policy, which covers multiple types of valuables under one policy (i.e. jewelry, antiques, artwork, furniture etc.). If you have this type of coverage, it is especially important to make a list of all your jewelry and the replacement cost for each piece. Discuss the list with your insurance broker to ensure you have adequate blanket coverage for your entire jewelry collection. If blanket coverage is insufficient, you will want to explore a separate policy that has adequate coverage.
With jewelry, it is also important to keep in mind that appraisal values may fluctuate over time. A 10-year-old appraisal for your favorite sapphire and diamond ring could cost you substantially if you ever need to file your claim. You may be disappointed to find that you cannot replace the piece because it was underinsured at the value of your outdated appraisal.
The bottom line is before you assume your jewelry is safe under the umbrella of your homeowner’s insurance, make sure you understand the limits of your policy as it pertains to jewelry. You may be surprised to find your policy caps the amount paid for jewelry somewhere between $6,000 and $10,000. If this is insufficient, talk with your insurance broker today.
Sources: Insurance Bureau of Canada