Will My Homeowner's Policy Cover My Jewelry?
You need to add a low-cost insurance rider to protect jewelry and other valuables.
After you've thanked your special someone for that extra-special holiday gift, contact your insurer. Most homeowners policies limit coverage for personal valuables, and you could fall far short of replacement value if your brand-new Patek Philippe watch is lost or stolen.
Homeowners insurance generally covers your possessions up to 50% of your total coverage. So if you have a $300,000 policy, your home furnishings and equipment are insured for as much as $150,000.
But most policies also place limits on specific kinds of items -- promising to pay a maximum of, say, $1,500 to $2,500 for all of your jewelry in the event of damage or theft. Other categories that usually have reimbursement limits include silver flatware, firearms, coins, stamps and furs. (Read the "contents and additional coverage" section of your policy for the details.) Accidental loss is generally not covered. So if you lose your engagement ring, you're out of luck.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To raise your coverage limit and ensure that you're protected in case of loss as well as theft, contact your insurance agent and ask either to add a rider to your policy or to "schedule" the item. (You may need a written appraisal, although a detailed receipt may suffice.) Once you set a value and schedule the item, you're covered for the full amount if it is lost, stolen or destroyed. "That makes the claims experience easier because there doesn't need to be an investigation into the value," says Matthew Cullina, of MetLife Auto and Home. Plus, there's no deductible for scheduled items.
Extra coverage is inexpensive. MetLife charges an average of 85 cents per $100 of coverage for jewelry kept at home and 35 cents per $100 for items kept in a vault. (Actual prices vary by company and geographical location.) Revisit your coverage levels frequently -- every three years, recommends Jamahl Johnson, an agent with Erie Insurance in Washington, D.C.
Generally, homeowners policies don't set limits on personal electronic items (other than your overall possessions limit). But make sure that your policy includes replacement-value coverage, which will pay for you to replace your item with a new one, and not actual cash-value coverage, which will leave you scrounging to buy a used PC or TV with the money you receive.
Back to the Magazine Center
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Eight Easy Ways to Save Money Without Compromising Your Lifestyle
Saving money can be as simple as a quick phone call.
By Kiplinger Advisor Collective Published
-
Five Ways to Save Big On Your Phone Bill When Traveling Abroad
Traveling internationally and want to save cash? Here are five smart ways to save big on your phone bill.
By Kathryn Pomroy Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published
-
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
By Daniel Bortz Published