Did You Know? Your standard homeowners insurance policy doesn’t fully cover stolen jewelry. Or even cover it at all if it’s lost.
Three things to know
- You may have much less coverage than you think. A late 2018 study found that the average engagement ring costs $6,000. But $1,500 is the limit a standard homeowners policy pays if your jewelry is stolen – even if all of it is stolen. If you aren’t sure how much coverage you have, look at the “Special Limits of Liability” section of your policy for the “Jewelry, Watches and Furs.”
- Your standard policy’s deductible may eat up most, or all, of your claim payment. For stolen jewelry, the policy’s deductible amount is subtracted from the claim payment. Most homeowners policies deductibles are between $1,000 and $1,500. So a $1,500 claim payment minus a $1,500 deductible leaves nothing. Check your policy’s Declarations Page to see the amount of your deductible.
- You’re likely out of luck if your jewelry falls off at the beach, gets left in a restroom, or a stone falls out. Most homeowners policies specify what is covered. Anything not on the list isn’t covered. Others are the opposite; they define what is NOT covered. Be sure to understand your policy. Either way, neither policy would cover you for these causes of loss.
What to you can do about it
Change your policy’s “gotchas” to “I’ve got this.” Get enough coverage to replace the jewelry. Get coverage that doesn’t require a deductible. Get coverage that would apply to many more causes of loss than your standard homeowners policy would. In short, get a valuable items endorsement (you may have also heard it called an “insurance rider”).
There are three types: One that pays the actual cash value of the jewelry, one that covers all your jewelry for a certain total amount, and one that pays an amount that you and the insurer agree is the value of the jewelry. The last one is particularly useful for artisan, antique, or custom-made jewelry.
We’ll work with you to help you properly document and get coverage for your jewelry. Our Risk Coaches are licensed insurance professionals who are trained to look at coverage from your perspective. They’re glad to help you navigate the often-confusing world of insurance coverage. Contact your local Risk Coach™ professional or call us at 800.342.5342, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET.