You work hard to earn the finer things in life for you and your loved ones. So it’s important to insure your valuables to prevent serious loss caused by theft or damage. With valuable item insurance, sometimes referred to as jewelry insurance, you can protect your jewelry, art, antiques, and other cherished possessions. Let’s explore how valuable item insurance coverage can work for you.
Basic renters, homeowners, and condominium insurance policies typically only include a limited amount of valuable item coverage with a maximum dollar amount for loss or theft. This means that your wedding or engagement rings would normally not be covered by a basic homeowners policy. In order to adequately protect your valuables, you need to add either a policy or endorsement or a floater:
Endorsements. An endorsement is added to your renters, homeowners, or condominium insurance coverage under the policy’s provisions. This alters the policy so that the endorsement can cover valuables normally excluded from the policy. An endorsement can increase the amount paid for a covered loss or extend the number of included perils. These valuables are “scheduled” on a list that includes the dollar value of each item and a brief description.
An item’s value is decided by a sales receipt or an appraisal. This determines the cash equivalent you would receive in the event that the item cannot be repaired or replaced after a covered loss. Scheduled items are normally independent of the policy deductible.
Floaters. A separate policy may be used to schedule your valuable items. This is called a floater policy. A floater protects your valuables by including them in an additional policy outside your basic homeowners coverage.
Once you have either a floater or endorsement, it is important to review your policy’s coverage limits periodically in order to make sure that you are not underinsured because of inadequate limits or outdated appraisals for valuables.
The cost of valuable items coverage depends on the item(s) and their appraised value. There is usually a nominal fee. But there are ways to save on your premium. Some of these methods include raising your deductible, installing smoke alarms, and increasing home security.