Protecting the Family Jewels – Do You Have Enough Coverage?

As a homeowner, the first thought regarding insurance is the house – the structure, but what about that shiny jewelry? According to The Knot, in 2021, the average cost of a wedding set in the US was nearly $6,000, and the Northeast has a higher US average of $7,400. The average spending on an engagement ring alone is between $1,000 to $4,000, with only 8 percent of couples spending less than $1,000.

Why does this matter? Well, if you have jewelry of value – engagement ring, wedding band, earrings, or family heirloom piece(s) of jewelry – you do not have a lot of basic coverage. Many carriers offer jewelry coverage, but basic coverage ranges significantly from $500 to $10,000. Carriers also impose coverage limits per item within those ranges for a loss.

Recommendation? Insure each piece of jewelry, whether insured on your home policy or a separate policy altogether. Because your jewelry is insured for the total value, replacing your jewelry when added to your policy will give you greater peace of mind in the event of a loss. Let’s look at a typical example.

You’re enjoying a day at the beach – when you go in the water, rings are on your finger, but when you come out, the rings are gone. This event is not a covered loss if you do not have the rings explicitly added to your policy. If the set was added to your home policy, congrats! The rings are insured, and you’ll be able to replace what was lost. Click here to learn about how we do this.

How much will this added coverage cost on your policy? There are variables, such as the value of the jewelry and how many items need to be insured. Most carriers inquire as to where the jewelry is stored. If you keep the ring inside a safe, there is a lower risk of theft or other loss. Jewelry worn or stored not in a vault may be seen as a higher risk. None of this means that you shouldn’t wear your wedding bands or rings. If you wear the pearls from the Titanic on your daily walk, then you can expect to pay a little more!

There’s also a difference to point out when deciding how to insure your jewelry. While the option of adding your jewelry to your home policy is convenient, please note that if you do suffer a loss and file a claim, this claim will be on your home policy and can affect the overall rate. Multiple claims on one policy could also result in your insurance carrier refusing to renew your policy. Another possibility is purchasing a separate insurance policy altogether for your jewelry. If you’d like to learn more about the options available, give the office a call or contact us. We’ve got you.