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.
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.
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.
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.
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.
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know So Far, Plus Early DealsAmazon Prime Here are the key Amazon Prime Day dates and details you need to know, plus some of our favorite early deals to shop ahead of the sale.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Retirees, It's Not Too Late to Buy Life Insurancelife insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
