Fine jewelry is always a popular gift, but they’re also especially vulnerable to fire, natural disasters, and theft. While your homeowners insurance policy will compensate you for most property lost in a covered event, your new jewelry may not be covered for its full value or protected against every peril. If you received a piece of jewelry for the holidays, you may want to review your policy to ensure it’s fully covered.

Jewelry & Homeowners Insurance

Personal Property Protection

Your homeowners insurance policy covers the structure of your home itself, as well as the personal belongings inside. Typically, the limits are based on the value of your home, so a $500,000 policy might include $50,000 of coverage for your jewelry, collectibles, and electronics, as well as your clothing and other household items. However, certain types of belongings are subject to much lower limits, especially jewelry and other easily stolen items.

Limits on Jewelry & Other Small Valuables

Of the personal property protection provided in your homeowners insurance policy, only a small amount can go toward replacing jewelry that has been stolen or destroyed. Generally, the limit is only $1,000, which may be only a small fraction of your collection, even if you only have a few fine pieces.

Purchasing Additional Insurance

While you might raise the limits on your homeowners insurance policy, each individual piece will still be subject to caps. Instead, purchase a floater policy. Not only will this additional policy pay the full replacement value of your precious jewelry, but it will also compensate you for incidents a standard one won’t, like accidental losses or damage.

For over 64 years, K.L. Smith Agency has provided comprehensive insurance solutions to homeowners throughout Willimantic, CT. Their highly trained agents will take the time to evaluate your situation and find a policy tailored to meet your needs, including any additional coverage for your most precious belongings. Visit their website for more on their homeowners insurance services, or call (860) 423-9294 to request a quote today.