insurance

Make Sure Your Valentine's Jewels Are Insured

You may need to purchase a floater because most homeowners policies provide limited coverage.

Congratulations to all of you who get engaged this Valentine's Day. Now, as soon as you've called your friends and family to tell them about your shiny new ring, call your insurance agent to tell him about it, too. Yes, your insurance agent.

If you received a diamond or any other expensive jewelry on Valentine's Day, you need to make sure it's protected under your insurance policy. Unfortunately, most homeowners and renters insurance policies limit reimbursement for the theft of jewelry (and other personal possessions) to $1,000 to $2,000.

To boost your coverage, add a floater -- or endorsement -- to your homeowners or renters policy. And some companies offer stand-alone policies for jewelry, so you don't have to have a homeowners or renters policy to get this coverage, according to the Insurance Information Institute (III).

Here's what you need to know purchasing a floater and protecting your valuables, according to the III:

-- You'll need an appraisal of the item before your purchase a floater or endorsement because the premium will be based on the appraised value and your compensation will be based on this amount if something happens to the item. Also send a copy of the purchase receipt to the insurer so the company knows the current value of the item.

-- Prices for floaters will vary depending on the type of jewelry, the insurance company you choose, where you live and where the item will be kept.

-- Floaters have no deductibles and will provide coverage even if the item is lost -- not just stolen.

-- You should take a picture of the item to help document a loss and speed up the claims process. Be sure to add the item to your home inventory list. The III's free Know Your Stuff tool will help you take an inventory.

-- You'll need to update the value of your jewelry because it can go up or down, and your floater should reflect any changes.

Follow me on Twitter

Most Popular

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your second stimulus check.
January 18, 2021
Biden Calls for $1,400 Payments as Part of $1.9 Trillion Relief Package
Coronavirus and Your Money

Biden Calls for $1,400 Payments as Part of $1.9 Trillion Relief Package

Under Biden's plan for a third stimulus check, the $600 second-round stimulus checks would be increased to $2,000.
January 14, 2021
6 Reasons Why Your Second Stimulus Check Might Be Delayed
Coronavirus and Your Money

6 Reasons Why Your Second Stimulus Check Might Be Delayed

The IRS started delivering second-round payments in December. If you're still waiting for your money, here's why your second stimulus check could be l…
January 18, 2021

Recommended

Kiplinger’s Best Firms for Customer Service: Banks, Credit Cards and More
banking

Kiplinger’s Best Firms for Customer Service: Banks, Credit Cards and More

We crunched a lot of numbers (and ran a survey) to crown top firms for their service on banking, credit cards, mortgages, and home and auto insurance.…
October 22, 2020
How Much Insurance Should You Get? A Lawyer’s Advice
insurance

How Much Insurance Should You Get? A Lawyer’s Advice

The advice to “Only pay for what you need” sounds good. But when it comes to home, auto and business insurance coverage, four guidelines could help de…
October 12, 2020
7 Things Medicare Doesn’t Cover
Healthy Living on a Budget

7 Things Medicare Doesn’t Cover

Medicare Part A and Part B leave some pretty significant gaps in your health-care coverage. Here's a closer look at what isn't covered by Medicare.
October 1, 2020
Your Guide to Open Enrollment
health insurance

Your Guide to Open Enrollment

Your options may look a little different this fall. Meanwhile, the cost of coverage continues to climb.
October 1, 2020