Basic Homeowners Insurance
Most standard policies do inherently cover jewelry, but they also impose fairly low compensation limits (currently the average is $1500 per listed item). Most standard insurance won’t cover “mysterious disappearances” such as items gone missing or misplaced and the owner really isn’t sure if it’s permanently lost or indeed stolen.
Personal Item(s) Floater
Also known as “riders” or “endorsements” – these are for specifically scheduled items on a homeowners’ policy (such as an engagement ring or a particular gemstone necklace…) and insurance companies require professional appraisals for each listed item. Usually, there are no deductibles attached to rider policies and they cover broader situations (a ring accidentally swept down a drain, a bracelet forgotten in a hotel room after checkout…) and cover items no matter where you are – at home, on a cruise, or abroad. Floaters typically only add a small extra fee to the homeowners’ policy, but they may not cover the full replacement value of each item.
The advantages of specialized jewelry insurance are many! First and foremost, these policies are designed to cover full replacement value as opposed to time-of-purchase price or materials cost. They cover basically anything, including mysterious disappearances, they normally cover the loss of part of a set (such as one diamond earring), partial damage (such as a chipped stone or a broken clasp), and – there are no deductibles. Finally, because they are separate from the homeowners’ policy – they will not affect an insurance credit score or future policy costs.
