Does Your Homeowners Covers Your Most Valuable Possessions?

Sunday, September 23, 2012 @ 10:09 PM
posted by prryjs

When considering home insurance many people are so focused on saving money that they don’t take the time to actually review their policy to make sure it covers everything that they expect it to cover in the event of a claim.  In California especially, homeowners tend to have the need for more specialized coverage.

One of the most overlooked coverage is for some of the most expensive items that people have, their jewelry!  There are two ways to have your jewelry covered.  Most home insurance policies in California come with a standard $1,000 in jewelry coverage that covers it for the named perils such as fire, or theft.  You can increase this coverage in different increments that are set up as a blanket coverage for all your jewelry with a maximum per item limit. This coverage is very inexpensive but is limited to basically fire or theft coverage, and is subject to your policy deductible.

The second option is to schedule your jewelry per item as a scheduled endorsement on your policy.  Although this does cost more, there are major advantages to this method of insuring your jewelry.  When you schedule your jewelry you are covered for more than just fire and theft.   This is called an “all perils” coverage meaning that no matter what happens to it is covered.  If you lose it, it’s covered, if your setting falls out, it’s covered, if it’s stolen it’s covered, if you drop it down the sink, it’s covered.

So how do you decide what option is best for you?  A lot of it depends on how much jewelry you have, how often you wear certain pieces, and what are the chances that certain items could be lost or stolen. It is always a good idea to schedule the “daily wear” items like your wedding ring, or your favorite pair of earrings.  If you have items that are over $5,000 per item you will most likely have to schedule them to have coverage.

Watch and Jewelry Insurance

As this coverage can really add up if you have a lot of jewelry it is really up to you which items you want to insure or not.  Although watches can be very expensive some people choose not to insure them due to the idea that they are not as easy to lose, and there is not a large diamond setting to fall out.  This may be a reasonable idea, but if the watch is stolen there is no coverage if it is above your blanket coverage for “non-scheduled” jewelry.

There are also other items that can be scheduled on a homeowners insurance policy such as fine art, sports equipment, collections, and more.

When possible the most economical way to insure the jewelry is through a mixture of unscheduled coverage, and scheduled coverage. When in doubt you can call our office and speak to one of our licensed agents for help deciding what is the best way to insure your jewelry, and fit your budget at the same time.


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