A homeowner’s insurance policy usually covers fires and storm damage, but does it cover lost or stolen jewelry. What happens if you come home and find that your home has been robbed? What if your rings slips off while swimming in the lake? Are you covered? Let’s take a look at common coverage.
Remember, all policies are different. Be sure to check with your local agent to see what is covered and what is not. This is a good time to increase your coverage, if possible.
Damage & Theft
There are many restrictions that can cause your claim to be denied. Common reasons that jewelry could be lost or damaged, but is most likely covered includes: fire, storms, and damage from a vehicle. Most homeowners policies only cover jewelry for $1,000-$2,000. That means that if theft occurs and your $30,000 wedding ring is stolen, you will only receive $1,000-$2,000. That is an industry standard. The same goes for fire and storm damage.
Losing a ring, necklace, or watch is very common. Articles like https://www.watchshopping.com/blog/common-watch-problems-and-how-to-fix-them/ describe some of the problems faced by watch owners, and losing your watch is certainly a big problem. Imagine this, you’ve just got back from a trip and realize that your necklace is gone. You don’t know where you lost it, but it is gone. It could be at the hotel, beach, or the airport. Say you were swimming in the lake, and you feel your watch slip off. You frantically try to grab it, but it’s gone. What now? In most cases your homeowner’s policy will not cover this.
How to cover lost jewelry or expensive jewelry
Insurance companies usually offer inland marine policies or endorsements you can add for extra coverage. If you’ve lost your engagement ring or your valuable watch, this policy will have it covered. You will need to talk with your agent for the specific details of this policy. For the insurance company to approve this coverage, you will mostly like need an appraisal. If you say you have a $15,000 watch, they will want proof that it is valued at $15,000. This policy also covers theft. As we discussed earlier, if your $30,000 wedding ring is stolen, your homeowner’s policy will only reimburse you $1,000-$2,000. This added policy or endorsement will cover the actual value of the ring, not capping you at $1,000-$2,000.
If you have jewelry that is valued higher than $2,000, it is time to talk to your agent. Tell your agent what jewelry you have and learn what coverage you have. This is the time to talk about theft and lost jewelry. Your agent will be able to give you options. You may need a new policy or an extra endorsement. Find out the criteria you will need for this coverage to start, such as, an appraisal. Loss and theft are very common, so act quickly to get your jewelry adequately covered.