Insuring Your Precious Jewelry: A Guide For Farmers

If you're looking to insure your jewellery, it's important to know that your standard home insurance policy may not cover all your valuables. Jewellery is often covered in a more limited way than other personal property, and some policies specifically exclude jewellery altogether. To ensure your precious items are protected, you may need to purchase additional coverage. This can be done by adding an endorsement or floater to your existing policy, which raises the coverage limits for specific high-value items. Alternatively, you can buy a separate jewellery insurance policy, which typically covers damage, loss, or theft. This separate policy can be especially useful if you have high-value jewellery that exceeds the coverage limits of your homeowners policy. By taking these steps, you can rest assured that your jewellery is safeguarded against the unexpected.

Home insurance policies may cover jewellery, but often with a low limit

Home insurance policies typically include coverage for personal property such as jewellery, but the limits are usually quite low. For example, a common policy limit for jewellery is $1,500, but your policy may vary.

If you have jewellery worth more than your designated coverage limit, you may be able to increase your personal property coverage limit, or you could consider scheduled personal property coverage. This type of coverage may be offered by your carrier as an endorsement and could be used to insure high-value items separately from other personal property.

If you are looking for a way to ensure that your homeowners insurance covers jewellery, you may be able to amend your home insurance policy to provide extra coverage. Depending on the value of your collection, as well as how many pieces you own, there are several options to achieve this.

Raising your coverage limits

If your existing personal property coverage limit on jewellery is close to the amount you need, you could contact your insurer to inquire about raising your coverage limit. This would likely increase your premium, but it could be a good solution if you don't need to increase your coverage substantially. Keep in mind that your deductible still applies if you rely solely on your personal property coverage.

Home insurance endorsement

Adding a scheduled personal property endorsement is another option to add coverage for specific items in your collection. Many people add this coverage to insure jewellery as well as other high-value items like art, collectibles, rugs, and instruments. When adding this endorsement to your policy, your insurance company will likely ask for the purchase receipt or a recent appraisal to insure the item for a specific dollar amount. Depending on your company's endorsement specifics, a deductible might not apply for the item in a covered loss, or you may be able to choose a lower deductible than the rest of your policy. However, keep in mind that adding an endorsement to your policy will raise the cost of your premiums. The increase generally depends on how much coverage you add with the endorsement.

Stand-alone jewellery insurance policy

Certain companies, including some major insurers, offer stand-alone jewellery insurance policies. A jewellery insurance policy may be helpful if your home insurance company does not offer a scheduled personal property endorsement. Jewellery insurance policy specifics may vary greatly between companies, but loss, theft, and some damage are usually covered.

You can increase coverage limits for jewellery with an endorsement or 'floater'

If you want to increase the coverage limits for your jewellery, you can do so by purchasing an endorsement or floater. This is a way to raise the coverage limits of specific high-value items. Also known as scheduled personal property coverage, this type of insurance is common for a range of valuable personal possessions.

An endorsement allows you to raise the overall limit for certain categories of items. You effectively "buy" additional coverage and protection, and your insurer will reimburse you up to those raised limits. Endorsements are the cheaper option, but there is usually an existing limit per item.

A floater, on the other hand, is more expensive but allows for higher limits per item. Floaters also provide more comprehensive coverage and allow claims such as accidental loss, which homeowners insurance will not cover. For example, a floater might cover you if you lose or leave behind a pricey ring on vacation.

Before purchasing a floater, the items covered must be professionally appraised. Many insurers will require that a professional appraisal be performed as part of their due diligence on the jewellery floater policy. After all, from the insurance company's perspective, it is important to understand the value of the item so that they can set their insurance premiums at an appropriate level.

Premiums for floaters depend on what you add, how much the items are worth, and where you reside. Unlike homeowners personal property coverage, there's no deductible for items covered by a floater.

Jewellery insurance can be purchased separately, covering damage, loss, or theft

Jewellery insurance can be purchased separately and is often referred to as a "rider" or "floater". This type of insurance covers damage, loss, or theft and is added to your existing homeowners insurance policy.

It is important to note that most major insurers do not offer jewellery insurance as a stand-alone product, but rather as an add-on to an existing policy. This is because jewellery insurance is intended for high-value items that require additional coverage beyond what is offered by traditional insurance.

When considering jewellery insurance, it is important to understand the limitations of your current policy. Many policies specifically exclude jewellery from coverage or limit coverage to certain types of events and a defined dollar amount. Therefore, it is crucial to review your policy carefully and speak with an agent to understand the limitations and exclusions.

To ensure your jewellery is adequately covered, you may need to have it appraised and then add that value to a "floater" or additional coverage beyond what the base policy covers. This will protect your jewellery in the event of loss, theft, or damage.

Additionally, jewellery insurance can provide coverage for "mysterious disappearance", where there is no evidence of theft. For example, if you lose your ring while playing golf and are unable to find it, jewellery insurance with this type of coverage would protect you from financial loss.

When shopping for jewellery insurance, it is important to ask the right questions, including how claims are handled, whether the full replacement cost is covered, and what types of loss and damage are not covered. It is also essential to have your items professionally appraised, take photos of the items, and consider increasing your deductible to lower insurance premiums.

By purchasing jewellery insurance, you can have peace of mind knowing that your valuable pieces are protected, and you can enjoy wearing them without worry.

A stand-alone jewellery insurance policy can be bought from specialist companies

A stand-alone jewellery insurance policy can be purchased from specialist companies that focus on insuring jewellery. This type of policy is ideal for those who want to insure high-value items or those who want coverage beyond what a standard homeowners insurance policy offers.

Specialist jewellery insurance companies typically offer worldwide coverage, accidental damage and loss protection, theft and attempted theft cover, and no limit on the number of trips you can take abroad. Some companies also offer no excess to pay in the event of a loss and cover items kept in a safe or locked gym locker.

When choosing a stand-alone jewellery insurance policy, it is important to consider the company's reputation, coverage limits, deductibles, exclusions, and customer service. It is also essential to get an appraisal or valuation for your jewellery items to ensure they are insured for their full value.

Some reputable companies that offer stand-alone jewellery insurance policies include Assetsure, Jewelers Mutual, BriteCo, GemShield, Lavalier, Chubb, and State Farm. These companies have received positive reviews and ratings from customers and industry experts, and they offer comprehensive coverage for jewellery items.

By purchasing a stand-alone jewellery insurance policy from a specialist company, individuals can have peace of mind knowing that their valuable jewellery is protected both at home and during their travels.

Home insurance claims for jewellery theft require a police report

Home insurance covers jewellery theft, but only up to a certain limit. This limit is typically between $1,000 and $2,000, although some policies may offer up to $10,000 of coverage. If your jewellery is worth more than this, you can purchase additional coverage in the form of a "rider" or "floater". This will increase the coverage limits of your policy and protect your jewellery against fire, loss, theft or damage.

In the event that your jewellery is stolen, you must first report the theft to the police and file a police report. Be sure to provide as much information as possible about the stolen items and request a copy of the police report for your insurance claim. You will then need to contact your insurance company and provide them with the police report, as well as any other relevant information or documentation. Depending on your policy, you may be required to pay a deductible before your insurance company will reimburse you for the claim.

It is important to carefully review your home insurance policy to understand the limitations and exclusions of your coverage. Working with an insurance agent can be helpful in navigating the process and ensuring that your valuables are adequately protected.

Frequently asked questions