The question today is this, do you list your jewelry on your Homeowners policy or should you have a separate policy for your jewelry? According to Jewelry Insurance Issues (formerly IM News) 70% of Personal Property Theft Losses (contents) are from jewelry claims. Most Homeowners insurance policies might not cover the full value of your jewelry or only cover a specific amount on losses of jewelry where there is a Homeowner’s Policy “capacity” or a “per item limit”.
As I started looking into this I didn’t realize just how many disadvantages there are to relying on your Homeowner’s insurance policy to cover your family’s jewelry. Filing a claim with your insurance company on a jewelry loss counts as a Homeowners loss as well. Many carriers are reluctant to include higher value items on a Homeowners policy. One of the few remaining discounts that you may receive on your Homeowners policy is a “claim free rating” a jewelry claim takes that discount away. Last, if the insuring company cancels your policy or decides not to renew it a Home Owners Policy is much more difficult to remarket after a loss.
There are actually several advantages of having a separate or stand-alone policy for your jewelry instead of having the jewelry covered under your home owner’s insurance policy. Having a separate policy allows you to receive broader coverage (usually at a lower policy cost), you are allowed higher items and “schedule values” and some policies offer “no deductibles”.
If this is something that you and your agent discuss there is one very important point when purchasing a jewelry policy. You need to make sure that the policy that you are considering includes a “cash settlement option”. Not all stand alone jewelry policies offer a “cash settlement option”; some stand alone policies only offer replace or repair settlements (no cash). At Birchell Insurance Agency, we can take care of this for you. Call us at (800) 978-8813 or write us at http://www.birchellins.com .