Most people aren’t aware that within a homeowner’s policy there are special limits of coverage for many items. A standard homeowner’s policy carries coverage limitations that apply to the amount of coverage afforded for certain items as well as the perils insured against for these objects. Jewelry happens to be the one item affected most often by these limitations.
An unendorsed homeowner’s policy covers jewelry up to the contents limit for perils described in the policy except theft or mysterious disappearance. These two events happen to be the two most likely causes for a jewelry claim. If a theft or mysterious disappearance occurs, the limit on the homeowner’s policy is typically only $1,000. If the item in question is more than $1000, you’re underinsured and responsible for the difference. This gap can easily be closed however.
Coverage can always be purchased through a jewelry floater (specific schedule) to increase the $1000 value and broaden the coverage for jewelry. When scheduling a particular piece of jewelry, the perils of theft and mysterious disappearance are included. The insurance company will require an appraisal to determine the value of the item to be covered and the exact specifications of the jewelry.
It is important that if you have any jewelry, watches, or high value items you discuss with your insurance agent. Homeowner’s policy will not automatically cover these items and you must schedule them on your policy to be insured correctly.
Please be sure and contact Homewell Insurance Services when your homeowners comes up for renewal. We represent many insurance companies that can save you money and get you the coverage you deserve.