Advertisement
insurance

Protect Your Valentine Diamond

Insuring your precious jewels should not be forgotten.

Lucky you. Your amorous, jewelry-buying dearest bought you a ring for Valentine’s Day. No matter how unromantic it may sound, that means it’s time to review your home-owners insurance.

Most policies cap coverage for specific categories of possessions. For example, the limit for jewelry is usually about $1,000 (at $3,500, the average engagement ring in the U.S. is worth more than three times that much). “Even if you have a great home-owners policy, as soon as you walk out of the jewelry store, you have very limited coverage,” says Madelyn Flannagan, vice-president of the Independent Insurance Agents & Brokers of America.

Advertisement - Article continues below

To make sure your bling is protected, talk with your agent about adding a floater to your homeowners policy. A floater will insure full replacement of the item in case of theft, damage or accidental loss. There’s no separate deductible, but figure a jewelry floater will boost your premium about $5 to $15 a year per $1,000 of coverage.

Now take stock of your home for other valuables and make an inventory (you can use the Insurance Information Institute’s free software at www.knowyourstuff.org). Consider adding coverage for anything with an estimated replacement value of more than $2,000. (A fur coat, for example, may be limited under your policy to about $1,500 of coverage.) Oriental rugs, artwork and antiques may not have specific limits, but most policies will cover the value of all your possessions only up to 50% of the policy’s value -- or $150,000 worth for a $300,000 policy.

Advertisement
Advertisement - Article continues below

A complete inventory will help you confirm that you have adequate coverage and make future claims easier. You may need to reappraise your valuables as the cost of gold and gems rises (and some insurers require periodic appraisals). To find a reputable appraiser, go to the American Society of Appraisers’ Web site (www.appraisers.org). Sorry, sentimental value can’t be insured.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
Find a Great Place to Retire
happy retirement

Find a Great Place to Retire

Our cities provide plenty of space to spread out without skimping on health care or other amenities.
July 2, 2020

Recommended

Applying for Disability Benefits During a Global Pandemic
insurance

Applying for Disability Benefits During a Global Pandemic

It can take months or even years to get approved for Social Security Disability Insurance (SSDI) benefits in the best of times. Needless to say, now i…
June 24, 2020
Finding Affordable Health Care Now
insurance

Finding Affordable Health Care Now

The pandemic has caused millions of people to lose their jobs — and their health coverage. Here’s a guide to finding affordable insurance.
June 4, 2020
9 Things You'll Regret Keeping in a Safe Deposit Box
savings

9 Things You'll Regret Keeping in a Safe Deposit Box

Locking up certain important documents and valuables in a bank vault could turn into a headache for you or your heirs.
June 1, 2020
11 Best Things to Keep in a Safe Deposit Box
savings

11 Best Things to Keep in a Safe Deposit Box

Certain documents and valuables, including certain things with sentimental value, should be stored securely at your bank.
June 1, 2020