personal insurance

3 Big Reasons To Avoid Insuring Jewelry On Your Homeowners Policy

For anyone who’s ever purchased homeowner’s insurance, you’re probably familiar with one of the questions the agent or broker will usually ask you. “Do you have any jewelry or personal valuables?” Then they’ll recommend that you put those items on a Personal Articles Floater, sometimes called a “jewelry rider.” What you may not know, and what that agent or broker will likely never tell you is that there are some serious possible drawbacks to insuring your jewelry on your Homeowners Insurance policy.

1. You have to file a Homeowners Insurance claim to get any coverage

When you insure your jewelry on a Homeowners Insurance policy floater/rider, that coverage doesn’t exist on its own. In order to ever file a claim for damage, theft, loss, etc., you have to file a claim on your Homeowners policy. Even if you are fortunate enough to have a $0.00 deductible option on your jewelry rider, you still have the hassle of a full blown Homeowners claim. Virtually all insurance companies give good discounts for being “claims free” for a number of years, usually 3-5, depending on the carrier.

When you file that jewelry claim on your Homeowners policy, guess what you lose? That claims free discount. For several years. So, even if you don’t pay a deductible on your jewelry claim, it likely will cost you several hundred dollars in extra premium for the next 3-5 years.

2. The coverage might not be nearly as broad as you expect

Depending on your Homeowners Insurance policy, there may be big holes in coverage for your jewelry. This is because, with most insurance carriers, floaters and riders are what’s called “Follow Form”, meaning that they will follow the coverage and exclusions/limitations of the policy they’re attached to. So, if a cause of loss is not covered on the policy, then it’s not covered for your jewelry. This is particularly important with regards to “mysterious disappearance” claims (AKA, “I lost it.) Many insurance companies won’t provide coverage for your personal property if you can’t prove a covered cause of loss (theft, damage due to fire, water, etc.)

3. Possession and location could be a problem

Homeowners Insurance companies like to know exactly where the things are that they are insuring. Many policies have limitations on coverage for items that are kept away from the location listed on the policy. This can create challenges and coverage limitations if the person who possesses the jewelry in question (like an engagement ring for a fiance who lives elsewhere.) Many times, if you tell the insurance company the facts of the situation, they will explicitly tell you that the jewelry needs to be insured on the policy of the person who possesses it.

Our Recommendation: Secure a stand-alone jewelry and valuables policy

We recommend that our clients choose to instead insure all of their jewelry, watches and personal valuables on a stand-alone policy from a reputable company. There are a few that specialize in this coverage. Our favorite, which we are proud to represent, is Jewelers Mutual, who has been in business since 1913. They are the recognized leader in jewelry insurance. Some of the benefits that come with their jewelry policy are as follows:

• Global coverage for loss, damage, theft and mysterious disappearance
• Zero out of pocket for claims AND full coverage for the purchase price or appraised value of your item(s)
• Competitive pricing across the board
• A fast and responsive claims process

Our team is ready to help with all of your jewelry and valuables insurance needs. If you’d like to schedule a consultation to review these, and all of your other needs, please click here and pick a day/time that works for you.

If you’d like to skip directly to getting a quote for your jewelry or valuables, please click here to visit our Treasure page.

Lastly, you’re always welcome to call our office and get personal help for whatever you need. Our goal is always to deliver value and solutions, never to be pushy or salesy.

When it comes to your jewelry and valuables insurance, Don’t Play Games, #BetterCallJames