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Whether a homeowner or renter, your home insurance is designed to protect your personal property from disasters such as fire or theft. However, many individuals don’t realize that typical homeowner policies tend to have dollar value limits on certain valuables, such as jewelry. To help you better protect your personal property, we’ll be covering the basics of jewelry insurance and the different options available to you. 

Does My Home Insurance Cover My Jewelry?  

As mentioned, standard homeowners, renters, and condo insurance policies provide some coverage for your personal property.

While every policy is unique, it’s normal for personal property to be insured for 20-50% of your home’s coverage limits. So, suppose your dwelling is insured for $400,000, and you have 50% personal property coverage. In that case, your insurer could pay up to $200,000 to replace your property after a covered loss.

Although jewelry is included in personal property coverage, insurance providers typically place sub-limits on valuables like jewelry and fine art. For example, according to the Insurance Information Institute, typical limits for jewelry tend to be around $1,500.

Depending on your jewelry collection, you may need more than $1,500 to replace your item. Additionally, your insurance provider will likely subtract your deductible from any claim payout, resulting in an even greater loss. For example, let’s say your $1,500 ring is stolen, and you have a $1,000 deductible on your home insurance policy. After subtracting your deductible, you’ll be left with a $500 payout from your provider.

If you own a small collection worth less than your policy’s sub-limit, your home insurance should offer you adequate coverage. However, it’s important to remember that filing a claim could result in a temporary increase to your insurance rate. 

Will My Home Insurance Cover Lost Jewelry? 

Losing an item isn’t typically a covered peril by most home insurance policies, so you’ll likely have no coverage if you accidentally misplace your jewelry. Thankfully, there are other insurance options available that can provide increased payouts and cover greater perils.

Increasing Coverage by Adding an Endorsement 

To fill in the gaps and provide the full coverage you need, insurance providers offer endorsements. Also referred to as riders, floaters, or scheduled items, these are specific items that you add to your existing home insurance policy. 

To endorse a jewelry piece, you’ll typically be required to appraise your item so your insurer can verify the item’s value. Keep in mind that adding a scheduled item to your policy will likely raise the cost of your premium. Any rate change will depend on the amount of coverage added based on your jewelry’s value.

If you have one or more pieces of jewelry worth more than your policy’s jewelry sub-limit, consider adding those as floaters to your home insurance policy for greater protection.

Purchasing A Specialized Jewelry Insurance Policy 

When you file a claim or schedule an item, your home insurance rate will likely be affected somehow. However, this can be avoided by purchasing a specialty policy, which AIS can help you with.

With a specialized jewelry policy, any claims made will stay off your home insurance record. Additionally, purchasing a jewelry insurance policy could offer the following benefits:

• Greater coverage, including accidental loss, damage, and mysterious disappearance
• Coverage for set pieces, such as one earring
• Preventative maintenance, such as clasp replacement
• Access to a network of reliable jewelry professionals if repair/replacement is needed
• No deductible policy options

If you don’t want any jewelry claims to affect your home insurance, or if you have an extensive collection, bundling a specialized jewelry insurance policy with AIS may be your best option.

How Much Does Jewelry Insurance Cost?

Policies can vary depending on your insurer, but you can expect to pay around 1-2% of the item’s value for your jewelry insurance per year. So, if your ring costs $5,000, it could cost you around $50-$100 a year to insure.

How Does a Jewelry Insurance Claim Work? 

To avoid surprises when filing a claim, it’s crucial to understand how typical jewelry insurers compensate their customers.

Most insurers offer “repair or replacement” policies, which means they’ll work with a jeweler to replace lost or damaged pieces but won’t provide a cash payout. This may be fine for individuals with new, standard-style jewelry but may be a problem for those seeking to insure a family heirloom that isn’t easily replaceable.

Before agreeing to a policy, ask your agent about the payout policies to avoid potential confusion down the road.

Protecting Your Home and Valuables 

Your homeowners insurance will protect your property from life’s what-ifs: what if there’s a structure fire? What if a car crashes into my wall? In these cases, your standard homeowners policy will cover the costs to repair any structural damage (up to your policy limits). However, for expensive valuables like jewelry, it may be worth purchasing a specialty policy, which AIS can help with.

If you have any questions or would like to bundle this specialty policy, give our team a call today at (888) 772-4247.

The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.

Although required in nearly every state, auto insurance policies can sometimes be tricky to fully understand. And because policies often come with a great deal of fine print and technical terms, it’s no wonder that most people learn the basics of auto insurance from others. Unfortunately, this can lead to a lot of misinformation being passed down. To help avoid confusion, we’re clearing up eight of the most common auto insurance myths.

Insurance Myth #1: Your Driving Record Is the Only Factor Insurance Companies Consider 

Your driving record does play a significant role when determining your auto insurance premium. However, it isn’t the only factor that is considered. Other factors insurance providers take into account include:

• Age or driving experience (may vary depending on your state)
• Your zip code data
• Vehicle make and model

It’s important to remember that insurance providers may use different formulas to calculate your premium, so shopping around could help you save.

Insurance Myth #2: Your Car’s Color Can Influence Your Insurance Rate 

One of the most common auto insurance myths we come across is that red cars are more expensive to insure. The idea is that because red vehicles stand out, they are more likely to be stolen or vandalized.

Thankfully for all red car owners, this claim is a complete myth. In fact, it’s likely that your insurance provider doesn’t even know what color your auto is. Typically, the only identifying information your insurer will need about your vehicle will be its make and model.

Insurance Myth #3: Smaller Cars Are Cheaper to Insure 

This may come as a surprise, but smaller vehicles aren’t necessarily cheaper to insure. Because compact cars tend to take on more damage in car accidents, they’re more likely to be declared a total loss versus a larger car. Additionally, smaller cars may not come equipped with advanced safety features that could result in a rate discount.

Insurance Myth #4: If You Owe Money on Your Car Loan, Your Insurer Will Pay for It

Some people may incorrectly assume that their insurance carrier will pay for any amount still owed on their car loan if their vehicle is totaled. Unfortunately, this is only true if you purchase gap insurance, an additional coverage that must be added to your policy. Without gap insurance, your insurance provider will only pay you what the vehicle is worth up to your policy limits.

Insurance Myth #5: An Older Car is Less Likely to be Stolen 

On the surface, it may seem logical that car thieves would only try to steal newer, more valuable cars. However, older vehicles tend to be the favored targets for theft because their security features are usually weaker than newer cars. In addition, as car manufacturing changes, there is a growing market for older car parts that are becoming harder to obtain. To protect your vehicle from theft or vandalism, you’ll need to have comprehensive coverage.

Insurance Myth #6: You Only Need Minimum Coverage 

Although you’re required to meet your state’s minimum coverage levels to legally drive, you may need more coverage depending on the situation. For example, suppose you’re financing a vehicle. In that case, your lender may require you to purchase collision and comprehensive insurance to protect their assets. Additionally, if you have assets to protect, purchasing higher liability limits could offer you greater financial protection for a small change in price.

Insurance Myth #7: If My Car Is Stolen, the Contents Inside Are Covered

As mentioned, comprehensive insurance will help cover the cost of theft or vandalism to a vehicle. Unfortunately, it will not cover any personal items left in your car if stolen, such as a laptop or phone. However, personal items taken may be covered under your homeowners or renters insurance policy.

Insurance Myth #8: Drivers of Fast Sport Cars Pay More for Auto Insurance 

As we previously mentioned, auto insurance providers consider multiple factors when determining your auto insurance rate, so while your car model may play a role, it isn’t all that is used. For example, let’s say you’re a 45-year-old driver of a sporty Mercedes-Benz coupe with a perfect driving record. This could mean that you have a cheaper premium than a 20-year-old driver with a recent at-fault accident on their record, even if they drive an older Toyota Camry.

Our Auto Insurance Specialists Are Here to Help  

When it comes to auto insurance myths, any misinformation out there could lead to costly mix-ups or insufficient coverage. Remember, everyone’s insurance policy is slightly different due to various rating factors and levels of coverage. 

At AIS, we pride ourselves on successfully helping our customers navigate the auto insurance market. To learn more about the coverages available to you and how AIS can help you find potential savings, call our insurance specialists today at (888) 772-4247, or start a free quote online.

The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.