If you own jewelry and other valuables, your home insurance policy provides some protection against many common risks. But you may want more coverage for certain items, such specific jewelry items or other specific items.
A standard home insurance policy provides a fixed coverage limit for personal property. For example, you might have a $150,000 coverage limit for all your belongings. However, certain types of items utilize sub-limits. A sub-limit caps coverage at a lower amount, but only for the types of items covered by the sub-limit.
Imagine you have a ring that’s worth $10,000 but your policy has a jewelry sub-limit of $5,000. If the ring is lost due to a covered claim, like a fire or a burglary, your policy would pay $5,000 for the ring, less your deductible. In many cases, home insurance deductibles may be $1,000. In the end, the insurer would pay $4,000 for the $10,000 ring in this example.
However, you can consider purchasing scheduled coverage for the $10,000 ring or similar valuable items to insure these items for their full value. Scheduled coverage is available as an add-on to a standard home insurance policy. You can also buy standalone coverage for valuables with many insurers.
With scheduled coverage, you can protect valuable items against more risks. You’ll also bypass the deductible that applies to standard coverage for personal property.
To revisit the $10,000 ring example, if you have scheduled coverage for the ring, your insurer will pay the full $10,000 if you have a covered claim. Schedule coverage does not use deductibles and because each scheduled item is insured to its full value, you won’t see a reduction due to sub-limits either.
Schedule coverage also brings protection for additional risks. For example, if the stone fell out of your $10,000 ring and became lost, your policy could pay for a replacement stone. By contrast, standard coverage for jewelry won’t cover the lost stone at all. Standard coverage for personal property focuses on a list of covered perils, such as fires, theft, lightning, weather risks, and similar events.
For many households, standard coverage provides a balance between protection and lower policy costs. However, if you own valuables, you can add scheduled coverage for the items most precious to you. This structure lets you invest your premiums where you need the most protection, while also keeping the cost of insurance for other belongings lower. Scheduled coverage for jewelry, art, and other valuables may be more affordable than you expect.
If you have valuables or are considering a purchase, reach out to your insurance broker to learn the best way to protect your precious items.