My engagement ring is gone – am I fully covered?

One of the biggest “gaps and gotchas” in a standard homeowner policy is the low coverage limit for stolen jewelry. It generally limits payment to $1,500 (or less) in total if your jewelry is stolen – even if all your jewelry is stolen.

That’s potentially a lot of money to be out of. Because, according to the U.S. Bureau of Labor Statistics, prices for jewelry are 85.72% higher in 2022 versus 1986. As of 2021, the average cost of an engagement ring was $6,000, and the average combined cost of both wedding bands was $1,610. Ouch.

Other circumstances not covered

It’s surprisingly easy to lose or misplace jewelry. Losses that occur in the situations listed below are considered “mysterious disappearances” and aren’t covered by a standard policy.

• You take off your ring in a restroom to wash your hands and forget it there.
• You take off your jewelry at the gym and forget it in the locker, and it’s not there when you come back.
• A ring or an earring falls off while you’re at the beach.
• You pack your jewelry in a suitcase and it’s missing when you get to your destination.

Here’s what to do

You have a few options to get better overall coverage for your jewelry than a standard homeowner policy offers. The first is to get a policy schedule/endorsement for your jewelry.  There are three types:

• An Actual Value Coverage endorsement allows you to schedule individual pieces for a value based on an appraisal by a qualified third party.
• An Agreed-Value Coverage endorsement insures your jewelry for an amount (based on a qualified appraisal) that you and Electric Insurance mutually agree on. This is a good way to exclude individual items from a Blanket Coverage endorsement in order to provide a higher rate of coverage for them.
• A Blanket Coverage endorsement covers all your jewelry as a collection rather than as individual pieces. Claims are settled on an actual-cash-value basis. This type of endorsement is convenient since you do not have to get an appraisal for all your jewelry.

Other ways an endorsement works for you

• Losses caused by “mysterious disappearance” are covered.
• For larger claim payments, no policy deductible applies when you have a claim.
• Coverage applies anywhere in the world, so if you take your good jewelry on an overseas vacation and it goes missing from your hotel room, you’re covered.
• Claims for Actual and Agreed-Value endorsements are simplified because a full description and value of the scheduled item is already on file.

Other solutions

Consider getting better overall coverage by getting a policy package, which includes important endorsements. Packaging endorsements provides better protection for homeowners at a lower price than purchasing endorsements individually. You can find out about our Homeowners Plus, Premier Choice, and Signature Choice home coverage packages by following this link.

Homeowners need a Risk Coach™

A 2022 insurance survey found that 96% of respondents misunderstood at least one important feature of their coverage. More than half misunderstood several features. We want better than that for our clients. So, our Risk Coach™ consultants are licensed insurance professionals who are trained to look at coverage from your perspective. They can help ensure you get the right coverage at the best price.

Disclosures