You might be surprised to learn that your homeowner’s or renter’s insurance policy probably does not offer full coverage for your engagement ring and other fine jewelry. Your insurance policy probably covers jewelry theft, but not loss that occurs for other reasons. Renter’s and homeowner’s insurance policies set limits for the loss of certain categories of personal property, including jewelry.
Homeowner’s policies typically pay a maximum of $1,000 for jewelry theft. A renter’s insurance policy might have a lower limit for jewelry loss–$500 is common. Does your insurance policy cover jewelry loss for reasons other than theft–such as for lost or damaged items? Read your policy carefully and ask your insurance agent to clarify the types of losses that are covered on your standard policy.
You can usually purchase additional insurance for your fine jewelry, but be sure to ask your agent questions so that you have a good understanding of the coverage: Is there a deductible? If so, how much is it and how does raising or lowering the deductible affect your policy costs? Is an appraisal required before obtaining insurance? Are there only certain types of appraisers whose reports are accepted? Are the items covered no matter where they take place? Would the policy cover you for a loss that occurs during domestic or international travel? Are items covered for full replacement cost? Must you replace the item, or can you obtain a cash settlement?