Dear Friends & Neighbors,
Valentine’s Day’s multi-billion dollar jewelry spend will leave many Americans uninsured and underinsured. John J. McGuirk & Associates, Inc. shares how proper insurance can prevent heartbreak in the event of theft, damage or loss.
The typical homeowners’ and renters’ policy provides between $1,000 and $1,500 for stolen jewelry, but the average cost of a diamond engagement ring, for example, is three or more times that limit, and many things could happen to it besides theft.
Here are three ways to insure fine jewelry:
1. Raise the limit of liability for jewelry on a homeowners’ or renters” policy.
2. Schedule the piece by adding a “floater” to the insurance policy.
3. Purchase a personal jewelry policy.
Raising the limit of liability is the least expensive option but still may not reach the jewelry’s value and still only provides limited coverage. Floaters and jewelry policies cost more in premiums, but they also offer coverage for the jewelry’s total value and for any type of damage or loss, even accidental ones.
Consultation with an independent insurance agent can help the newly betrothed–or otherwise recently bejeweled–decide which option is best for them based on their current policy limits and the value of the jewelry. Most floaters and jewelry policies will require an appraisal or bill of sale.