Many of us believe that our homeowners’ insurance policies cover expensive items such as jewelry, with no limitations. This is simply not true. While standard homeowners’ policies provide coverage for jewelry, furs, silver, fine arts, collectibles, computers, cameras, etc., the coverage is limited, often to $1,000 or $2,000.
You should purchase a special endorsement to the homeowners’ policy, called a Personal Articles Floater, and list—in advance of a loss—the value of the item, usually determined by a recent appraisal. That way, if there is a loss, the value is determined in advance. In addition, coverage is usually broader. For instance, in the case of jewelry, loss of a stone from a setting and “mysterious disappearance” are both covered by the Personal Articles Floater, but not by the standard homeowners’ policy. And…there is no deductible.
The premium for covering valuable items by a personal articles floater depends on the value of the item, the insurance company, where you live, where it is kept. For instance, you may save premium by keeping your jewelry in a vault.
And, while you are at it, it is an excellent idea to walk through your home and take a video of your possessions. Keep the video in a safe place outside the home. That way, if you have a devastating fire or theft, you will have a record of what you lost. Keeping sales receipts is also very helpful at the time of a loss.
