Jewelry Coverage Basics

Did you know that every home policy includes special limits on jewelry for theft? While other losses will be covered up to your personal property limit, theft is limited for certain items. Most of the time, the special limit will be about $2,500 for jewelry. This is paid for jewelry stolen after your deductible is applied.

It is recommended that if you have any jewelry pieces that exceed $1,000 in value, you should consider extra jewelry coverage for your policy. There are three options. Increase special limits, schedule the property, blanket coverage, or a stand-alone policy. I will explain each option in this article.

Increase Special Limits

One option to cover your jewelry properly is to increase the special limits. This is done as an endorsement on the home insurance policy. As mentioned before, your special limit for theft to jewelry is usually around $2,500 per occurrence and is subject to the policy deductible. Some policies allow you to increase this to $10,000 or even higher. These increases are usually included in certain policy packages that add other benefits. It is best to discuss this with your agent as every carrier can be a little different.

Schedule the Property

You have probably heard of this coverage before. Scheduling property on a home insurance policy ensures that the items will be covered at the correct amount. You set your own limit per item and usually have to provide an appraisal to do this. There is no deductible and sometimes breakage and mysterious disappearance is covered. These two coverages are usually excluded. This is recommended for high priced jewelry.   


Blanket Coverage

Many carriers are introducing an easier and cheaper option to insure multiple pieces of jewelry with out having to schedule or get an appraisal. You set a limit that is usually the cost of all the items combined. Make sure you understand that each item has an individual limit even if you have $30K in blanket jewelry coverage.


Stand-Alone Policies

The last option is a stand-alone policy. This operates like any other insurance policy. A limit for coverage is set and a deductible. $0 deductibles are always available. Appraisals are usually required for this coverage option.

Let us know about your jewelry today so we can cover it properly.