It is a common assumption that homeowners make. But does your homeowner's insurance automatically cover your jewellery? The best person to answer that question is your insurance broker. It is possible that the value of your jewellery falls within the coverage limits of your policy. However, it is best to know upfront what is covered and what is not as well as the requirements your insurance company may have for filing a claim involving jewelry.
For example, certain insurance companies require proper documentation on the value of your jewelry before they will pay a claim. If this is the case with your policy, it is important to obtain an appraisal now and file it somewhere safe. Jewellers will typically provide a free appraisal when you purchase your jewelry so be sure to ask.
If you have certain jewellery pieces that are of significant value, such as an engagement and/or wedding ring, it is recommend that you add them to your policy as a scheduled article. In order to schedule a jewellery item on your policy, the insurance company will require a recent appraisal to confirm the value. The main benefits of scheduling a jewellery item are that it increases coverage limits, provides broader protection and there is no deductible applied in the event of a claim.
Many insurance companies cover jewellery under a blanket coverage policy, which covers multiple types of valuables under one policy (i.e. jewellery, antiques, artwork, furniture etc.). If you have this type of coverage, it is especially important to make a list of all your jewellery and the replacement cost for each piece. Discuss the list with your insurance broker to ensure you have adequate blanket coverage for your entire jewellery collection. If blanket coverage is insufficient, you will want to explore a separate policy that has adequate coverage.
With jewellery, it is also important to keep in mind that appraisal values may fluctuate over time. A 10-year-old appraisal for your favorite sapphire and diamond ring could cost you substantially if you ever need to file your claim. You may be disappointed to find that you cannot replace the piece because it was underinsured at the value of your outdated appraisal.
The bottom line is before you assume your jewellery is safe under your homeowner's insurance, make sure you understand the limits of your policy as it pertains to jewellery. You may be surprised to find your policy caps the amount paid for jewellery somewhere between $3,000 and $10,000. If this is insufficient, talk with your insurance broker today.
Call one of our brokers at Morison Insurance to ensure your jewellery is properly covered.