Do I need to insure my engagement ring?
What is it?
Most people want to protect their most cherished and valuable possessions. When an item has great sentimental value; its loss, damage, or theft can be devastating. Not having the proper coverage to insure such a loss can add to that heart break.
Doesn’t My Homeowner Policy Cover My Jewelry?
Many homeowner insurance policies offer inadequate coverage for expensive jewelry. The maximum amount they would pay out for any one item may be well below the actual value.
Some policies also have limits on what they actual will cover, such as Theft coverage only. These policies will not cover instances such as damage to a stone, the replacement of a ring dropped in a lake while on a boat, or a lost item.
To make sure that you are fully covered for almost every situation, you should choose a “stand alone” policy, also known as a Personal Articles Floater. Get an appraisal to figure out how much coverage you need.
Is My Sales Receipt An Appraisal?
No! Your sales receipt is not the same as an appraisal. Your sales receipt only shows what you paid. You may have got a great deal on the item or for some reason you paid too much.
If you jewelry is listed as a blanket endorsement on your home insurance policy, and you have the contents replacement cost endorsement, your jewelry replacement will be based on the current retail market cost to restore or replace your item at the time of loss.
However, many Persona Articles Floaters (PAF) policies are based on Agreed Value. The Agreed Value option will pay the amount for which the item is listed on the policy. For this loss settlement option, you may need to supply a recent appraisal to substantiate the value for which the item is insured.
Appraisals should, and in most cases, Must, be updated every 3 to 5 years. Keep in mind that inflating the stated value of jewelry to be insured is fraudulent and can be the basis for having a claim denied. In addition, you can expect to pay an unnecessary higher premium as the price is calculated based on an average cost of $1 - $2 per $100 of coverage.
How Do I Get Coverage For My Jewelry?
Contact our office for a no obligation quote. We are only a phone call away. 201-340-4080.
"Disclaimer: The content contained in this blog is for informational purposes only. It should not be considered insurance advice since every client's needs and circumstances are different. Bergen Insurance Group, LLC makes no representation as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All statements represent the sole opinion of the author and is provided on an as-is basis. For an actual description of all coverages, terms and conditions, refer to your insurance policy.”