Is High Valued Inherited Jewellery Covered by Home Insurance?
As part of a standard home or renter’s insurance policy, the policyholders’ belongings are covered, to some degree, by a component of their coverage known as the contents coverage. However, your contents coverage has limits as to what it will cover and to what extent. Certain personal items that you own may only be insured up until a specific dollar amount, which can leave out more expensive valuables, such as your inherited jewellery, antiques, rare collectible items, diamond engagement ring or a rare designer watch.
In short, high-value items may not be always sufficiently be covered under your standard home insurance policy. You may need to protect high-value collections and possessions by purchasing additional coverage.
Here are the steps you need to follow to ensure that your high value items are covered, in addition to some tips on how to get your jewellery properly assessed.
First of all – check your policy coverage limits.
The first and foremost important step in ensuring your high valued items are covered by your home insurance is to review your coverage. You can do this on your own or you may enlist the help of an Oracle RMS expert. Many home and renter’s insurance policies include coverage that will help to replace your personal property if it is lost or damaged because of an unexpected loss due to insurable perils. In other words, your belongings, such as furniture, electronics, clothing, and more will be covered by your existing policy, but all items will be subject to a personal property coverage limit.
To ensure that your belongings are all properly covered, you’ll want to do a list of what you own and roughly estimate how much each item costs. Compare this amount to the personal property coverage limit detailed in your policy.
Your policy’s wording may specifically exclude some valuable items, like jewellery, or only cover them up until a specific amount by your standard home or renter’s insurance. Be aware of limitations like this and be sure to note if your coverage limits are exceeded by the value of your high-value belongings. This will be important to remember for later when determining whether or not you’ll need to purchase additional coverage.
Pinpoint high-valued items that have special limits
Some items listed on your policy have set coverage limits. These may be referred to as Special Limits. Any of the following items could be subject to Special Limits:
- Furs
- Collectibles
- Watches
- Jewellery
- Stamp collections
- Coin collections
- Art collections
- Wine collections
- Bicycles
- Handbags
- Purses
If you own a ring that’s worth over $10k and your policy contains a Special Limit that only covers high-valued jewellery for mysterious disappearance and theft or vandalism up to $6,000, you’ll have to pay the remaining costs out-of-pocket for a worthy replacement.
The average coverage limit for all your high valued items, including gems, watches, jewellery, etc., is between $3,000 and $6,000. If your belongings within this category accumulate to a higher amount, it’s vital that you consider updating your home insurance by purchasing extra coverage to ensure that you’re fully covered.
Have your high-valued items appraised by a professional appraiser
What your high valued items might be worth is not necessarily the same price as what you purchased them before. It is important to get the items appraised by a professional appraiser.. You’ll want to do your research to find the appropriate appraiser for the job and ensure they’re certified and Expect to pay a fee for your appraiser’s work.
After the appraisal has been done, keep a record of their report to show your broker later.
Reach out to your broker about a jewellery rider
If you have determined that your existing property insurance coverage is not enough to cover your high- valued items, then it’s time to arrange a phone call with your trusted home insurance broker. You may be able to purchase an add-on to your existing property coverage known as a jewellery rider or floater which will extend your coverage limits to ensure your high valued items are sufficiently insured.
You can also purchase standalone jewellery insurance to fill in any gaps left behind by your existing home or renter’s insurance if a damaged, lost, or stolen item costs you too much to replace. Investing in jewellery insurance or even a floater will save you from having to pay out of pocket to replace your items. A standalone, dedicated jewellery insurance policy may cost more than a rider but will offer fuller protection. Some benefits of jewellery insurance include:
- You may have a separate, lower deductible than if you purchased a rider
- You’ll have better protection for your jewellery than you would with regular home insurance
- You will receive repair and replacement coverage
- Jewellery insurance covers most applicable risks to jewellery, including things like disappearance, theft, damages, gems falling out, destruction, etc.
- It’s more affordable to pay for jewellery insurance than it is to repair or replace your high valued items, especially if you own numerous pieces of jewellery, collectibles, etc.
Discuss with your insurance provider about what option is best for you.
Get comprehensive home insurance coverage with Oracle RMS
Purchasing a home is one of the biggest decisions in life. It is important for all homeowners to obtain a comprehensive home insurance policy to protect their most valued asset. Homeowners should be confident that their insurance, policy is sufficient and covers all that they need it to protect. With Oracle RMS, peace of mind can be a reality. Get a free home insurance quote from our trusted insurance partners today.
