When asked about valued possessions, many people list small items with a high sentimental value. Whether it’s an engagement ring that’s been passed through generations, or a special watch given as a graduation gift, belongings attached to special memories are often among the most important possessions a person has. When it comes to protecting these items with insurance, standard homeowners policies rarely have the coverage you need to safeguard your valuables. Personal jewelry insurance is a reliable way to cover items of high value, offering peace of mind and a source of financial security.
Options for Coverage
Seeking a special policy to cover valuables is generally recommended for any items of particularly high value. Homeowner’s policies usually include stipulations that cover loss of valuables; however, the coverage for lost, stolen or damaged property is usually capped at a couple thousand dollars for all your belongings. Since a single piece of jewelry can easily exceed this coverage amount, taking out a special policy helps to plan for any loss or damage that might occur. There are two main types of personal jewelry insurance:
- Floater policy: this serves as an add-on to an existing policy (usually homeowners insurance). This can be specified to cover single pieces or a larger collection of valuables.
- Stand-alone coverage: this can be purchased from a secondary insurer, allowing you to seek out a provider who specializes in coverage of valuable items. This type of insurance is purchased to cover a specific risk or cost.
Plan for the Unexpected
Personal jewelry insurance helps cover unexpected events like theft of a watch or losing a stone from your engagement ring. These specialized plans can give you more confidence to wear your favorite jewels and heirlooms without fear of financial loss.