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Posted December 4th, 2012
When consumers talk about jewelry they often refer to the “4 C’s”. Of course, anyone who has shopped for an engagement ring knows the 4 C’s refer to Clarity, Color, Cut, & Carat Weight. But when you purchase those gems you need to be aware of the “5th C”. That would be Coverage on your insurance policy.
Most people assume that coverage is automatically included for their fine jewelry on their homeowner’s insurance policy. According to Ask.com “You might be surprised to learn that your homeowner's or renter's insurance policy probably does not offer full coverage for your engagement ring and other fine jewelry. Your insurance policy probably covers jewelry theft, but not loss that occurs for other reasons.” On top of that built in theft coverage for jewelry on a homeowner policy could be as little as $1,000 with a hefty deductible that could apply. On some renters policies that coverage could go as low as $500.
The best way to verify coverage for your jewelry is to speak to your local independent insurance agent and have him run a complete analysis of your insurance protection. Your agent can work with you to give you a good understanding of your policy and the personal property coverage it gives you. He can point out if you have a deductible and how much it is. He can also determine if you need an appraisal to establish the value and if so, what type of appraisal is required? Finally he can check to see if there are any travel restrictions that would limit your jewelry coverage?
After working with the agent you may find that, depending on the number and the value of the individual items, you may wish to add a personal property floater to your insurance plan. Floaters offer flexibility and a simplified coverage option at an affordable price. Or you may wish to purchase the peace of mind that an itemized schedule of protection can afford your collection.
Whatever your choice of the protection package your homeowner’s insurance jewelry coverage need to be thoroughly examined to give you the peace of mind that insurance should bring.