Jewelry is included in homeowners insurance coverage C, personal property insurance. However, depending on the value of your jewelry collection, your insurance may not cover its full value without a planned personal property coverage clause. Bankrate’s team of insurance editors, including licensed insurance agents, explain what you need to know about how homeowners insurance covers jewelry.
When does homeowners insurance cover jewelry?
Jewelry can be covered under your home insurance policy, but there are two important caveats to be aware of: theft coverage limits and pair or set requirements.
Jewelry is very valuable and easy to steal. To limit your risk exposure, most insurance companies limit the amount they will pay for jewelry theft claims. Most home insurance companies have limits of $1,500, but this can change based on your specific policy.
For example, even if you have $150,000 in personal property coverage, your insurance company will only pay out a maximum of $1,500 for a jewelry theft claim, and your deductible may be factored into the amount you pay. This means that if a $1,000 necklace is stolen during a house party and your deductible is $1,000, you technically won’t get any money from the insurance company.
Additionally, the pair or set clause applies to earrings or other jewelry that come in a set of two. It governs how insurance companies handle claims if only part of a set is damaged, lost or stolen. Insurance companies don’t have to cover the full value of a pair or set. Instead, they can calculate the amount to be paid by subtracting the remaining value from the total value.
For example, say you have a pair of diamond earrings worth $20,000. One earring is irreparably damaged in a fire, but the other is fine. The appraised value of just one earring is $6,000. In this case, the insurance company might pay you $20,000 minus the value of each earring ($6,000) and your deductible of $1,000 – or $13,000.
If you have jewelry worth more than the specified coverage limits, you may want to consider a scheduled personal property insurance add-on. This add-on allows you to insure your jewelry at its full value and protect it from more perils. In some cases, these include accidental physical damage or loss that are typically excluded in home insurance. Depending on the add-on, you may also be able to insure your jewelry without a deductible.
Does home insurance cover stolen jewelry?
Theft is considered covered by most home insurance policies, including HO-3 policies (the most common policy type), but it will only pay up to the policy’s theft coverage limits. Whether you have one expensive item or your entire expensive jewelry collection, your home insurance will only pay up to the theft coverage limits of your jewelry coverage. Unless you increase your personal property limits or add planned personal property coverage, your home insurance may not fully cover stolen jewelry.
Does home insurance cover broken jewelry?
Homeowners insurance may cover personal property on a named peril or open peril basis. Some policies have perils that are not typically included or specifically excluded. Jewelry damaged by a covered peril, such as fire or windstorm, may be covered, but only up to the policy limits. Jewelry covered under regular personal property coverage is covered in the event of accidental damage and has no deductible (in some cases).
Does home insurance cover lost jewelry?
Home insurance doesn’t usually cover lost jewelry. If you have an HO-3 home insurance policy, your personal possessions are protected on a named peril basis, meaning you can only make a claim for your personal possessions (in this case, jewelry) if they are damaged by a cause that’s explicitly listed in your policy, such as fire or theft. However, if you have an HO-5 policy, your personal possessions are protected on an open peril basis, meaning that while your home insurance policy may cover lost jewelry, it’s not guaranteed.
All policies, including HO-5, exclude negligence, and insurance companies may consider lost jewelry an act of negligence. Homeowners insurance rarely covers lost jewelry, so experts recommend talking to your agent about any personal property coverage you may have.
How much personal property does home insurance cover?
Personal possessions coverage is a component of a standard homeowners insurance policy that covers your possessions, such as clothing and furniture. It usually provides coverage up to a certain percentage of your dwelling coverage, which is the amount insured on the structure of your home.
Most insurance companies offer personal property coverage that is equal to 50 to 70 percent of your home coverage. Policy details may vary. Consult your policy or ask your agent to find out what your coverage is. Keep in mind, however, that certain coverage limits may apply to jewelry and other valuables. Your agent should be able to explain that coverage to you as well.
How can I increase my jewelry insurance coverage?
If you’re looking for ways to ensure your jewelry is covered under your homeowners insurance, you may be able to modify your home insurance policy to provide additional coverage. Depending on the value of your collection and how many pieces of jewelry you own, there are a few options for making this happen.
Increase the compensation limit
If your existing personal property coverage limits for jewelry are close to what you need, you can contact your insurance company and inquire about increasing your coverage limits. This may increase your premiums, but it could be a good solution if you don’t need a significant increase in coverage. Keep in mind that deductibles still apply, even if you rely solely on personal property coverage.
Homeowners Insurance Approval
Adding a scheduled personal property endorsement is another option to add coverage for specific items in your collection. Many people add this coverage to insure expensive items such as jewelry, fine art, collectibles, rugs, musical instruments, etc.
When you add this endorsement to your policy, the insurance company may require you to provide a purchase receipt or a recent appraisal in order to insure the item for a certain amount. Depending on the details of the insurance company’s endorsement, no deductible may apply to the loss you’re covering, or you may be able to choose a deductible that’s lower than the deductible that applies to the rest of your policy. Keep in mind, however, that adding an endorsement will increase your premiums. The increase usually depends on the amount of coverage you add.
Jewelry Insurance
Some companies, including major insurance companies, offer standalone jewelry insurance. If your home insurance company doesn’t offer regular coverage for your personal belongings, jewelry insurance may be helpful. The details of jewelry insurance vary widely from company to company, but it usually covers loss, theft, and some damage.
