Holiday Gift Giving Sparks Questions About Adequate Insurance Coverage for Jewelry

WILMINGTON, N.C., Dec. 21, 2011 /PRNewswire/ -- When it comes to the top holiday gifts for women, jewelry is often in the top ten. If you plan on giving or receiving the gift of jewelry this year, have you considered what kind of protection you have for these valuables?

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A standard homeowners insurance policy typically covers jewelry but there are limits on this coverage when the jewelry is lost by theft. A typical policy will also set a limit for an individual piece of jewelry. For example, your homeowners policy could provide $1,500 in coverage for jewelry lost by theft, however, this usually also includes items such as furs and precious stones lost in the same peril. A standard policy will also usually set a dollar limit for any individual article of jewelry.  

If you own a valuable piece of jewelry you should check to see if your current homeowners insurance policy still adequately covers you. If not, you should talk to your insurance agent about scheduling a particular high-value item as an endorsement on your existing policy. This will provide you with extended coverage limits for all covered perils.

If your jewelry exceeds the limits provided by an endorsement- or if you need to insure a piece of jewelry and do not have a homeowners policy- your insurance agent might recommend that you purchase a separate policy (also called a personal articles floater) that can be tailored to provide the coverage that you require to insure your jewelry in its entirety. This type of policy offers the most amount of coverage for a single item of particular value.

Because coverage limits vary by policy it is important to talk to your insurance agent about the specifics of your policy. It can also be helpful to submit an appraisal to your insurance company so that if a claim ever arises, there is no question of that item's value.

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SOURCE HomeInsurance.com