Valentine’s Day was last week and love is in the air. Did you get new diamond earrings? A heirloom necklace? Did you get engaged?! If yes, congratulations! Before the champagne and chocolates are even gone, take the steps to protect and insure your new jewelry.
Here at Rogers & Gray, we take a comprehensive approach when deciding the best fit for our client’s insurance needs. One very important question is always, “Do you own any jewelry of high value?” We inquire about this information to make sure we are able to see any potential gaps in coverage.
A standard homeowners insurance policy has limits associated with high-end items, such as jewelry, collections, furs, and fine arts. If these items are not listed or “scheduled,” often the most an insurance company will pay per item is $1,000 to $1,500.
For example, if your $10,000 engagement ring is stolen, the most an insurance company will cover for that item is $1,500. Additionally, you would have to pay your deductible. In the end you would only be compensated $500 to replace your ring. Obviously, this is not an ideal situation.
When a piece of jewelry is scheduled on an insurance policy, the outcome is completely different… The client would put in a claim for their stolen ring. The deductible would not apply. Their insurance company will either pay for the value listed on their appraisal OR replace the item with the exact same piece of jewelry. Clearly, a much better situation!
Benefits of Scheduled Jewelry:
- Extra coverage for the peril of theft and mysterious disappearance
- No deductible required at time of loss
- You either get paid for your lost item (based upon the amount listed on the appraisal) OR the insurance company provides a replacement.
How to schedule jewelry on your homeowners insurance policy:
- Have any high value jewelry appraised by a licensed jeweler
- Provide your agent with a copy of the appraisal to keep on file
- Notify your agent anytime you get new jewelry
How much does it cost to schedule jewelry?
The cost of scheduled jewelry differs between companies. It is calculated as an rate per $1,000 of coverage. For example, a $10,000 engagement ring scheduled with ABC Insurer is $175 a year, at $17.50 per thousand. You’d probably rather put out $175 over the course of the year, than $10,000 in the event the ring gets lost. If you are looking for savings, insurers will often provide discounts for jewelry that is kept in a vault or safe.
If you received a special gift this Valentine’s Day, be sure to contact your insurance contact at Rogers & Gray or at your own agency. If you’d like to learn more about this coverage or get your jewelry scheduled, feel free to email me at: [email protected] or give me a call at 508.258.2128.