Happy Valentine’s Day!
Whether it is from Valentine’s Day, Mother’s Day or a wedding day, it is very likely that a loved one has received jewelry as a gift and stores it in their home. While a minimal amount of jewelry is covered under a homeowner’s insurance policy, a policyholder will need more coverage if the actual value of the jewelry owned exceeds the provided limit. It is important to recognize that each insurance carrier handles their coverage differently. The following information discusses general ways in which jewelry can be protected. If you would like an agent to review your specific policy, click Beckerman & Co to contact a knowledgeable agent.
For the most part, jewelry is covered under a homeowner’s insurance policy for up to $1,000- depending on the carrier. This is a standard coverage in most policies, and will be covered either on a scheduled or blanket basis. If an insured’s jewelry value amounts to less than $1,000 then no other coverage is needed. However, if an insured’s jewelry collection amounts to more than $1,000 then more protection is needed.
When an insured is seeking to ensure his or her jewelry collection is insured, the first step in this process is to have jewelry appraised. Whether the jewelry is covered on a scheduled or blanket basis, having an appraisal will ensure that an insured receives the actual value of jewelry in the event of a loss, and not just an estimate.
There are two ways to endorse added jewelry coverage on an insurance policy. Coverage can be on a scheduled or blanket basis. With a scheduled basis, a list is submitted to a carrier describing each and every piece of jewelry covered and only those pieces of jewelry are covered in the event of a loss. Therefore, it is important to keep the insurance company abreast of new pieces of jewelry received as gifts on special holidays, such as Valentine’s Day. The benefit of a policy being covered on a scheduled basis is that there is no deductible required, which can be favorable in the event of a large loss where more than just jewelry needs to be indemnified.
Another way to add jewelry coverage is on a blanket basis. With a blanket endorsement, a current list of owned jewelry, or jewelry in which the insured desires coverage, doesn’t need to be submitted to a carrier. In the event of a covered loss, the carrier will cover a claim submitted for lost jewelry up to the limit the insurance provides. The difference, however, between a scheduled and blanket policy is that a deductible will apply with a blanket policy.
Most jewelry endorsements will cover, at most, up to $5,000 dollars. If an insured’s jewelry collection exceeds this amount, it may become necessary to take out an entirely new Floater policy. This policy will cover owned jewelry either on a blanket or scheduled basis depending on the carrier.
To be sure jewelry is adequately covered, an insured can contact their own agent, or an experienced professional at Beckerman & Co to review their policy.