My sister noticed the solitaire diamond stone was missing from the setting of her wedding ring. She had no idea where she lost it or even how long it had been gone. After searching everywhere she could possibly imagine with no luck, and feeling pretty heartbroken, she decided she would have to file an insurance claim to replace it. Questions were running through her head.
"Will this be covered by my home insurance?"
"How much will I get?"
"Will I able to get a similar diamond?"
That weekend, she was vacuuming the interior of her car and caught the glint of something vibrating across the floor mat. And there it was about to be sucked up by her hand vac- her diamond.
Jewelry is expensive, fragile, sometimes stolen, and frequently lost. You want to be sure it's protected so you can afford to replace it if something happens. Home insurance will cover your jewelry in some cases, but not all. Let's spell it out.
What does home insurance cover?
Home insurance and renters insurance protect jewelry from the "named perils" -things like fire, severe weather, and theft up to $1,500. As with any home insurance claim, there's also a deductible. That's the portion your responsible for paying.
In my sister's case, her missing diamond stone would not be covered by her standard homeowners insurance. Home insurance does not cover lost jewelry. The good news is a jewelry rider insurance does, along with a few other perks.
What is a jewelry rider?
A jewelry rider is an insurance policy for certain expensive items that may need a little extra coverage. You may be wondering why you need to buy a separate policy? First of all, you don't. Your home insurance will cover the most common loss scenarios, like damage and theft. Second, insurance products are designed to flexible. Nobody wants to pay for built in coverage on a standard home insurance or renters policy if they don't have jewelry worth more than $1,500.
A jewelry rider, also called a "scheduled endorsement", is extra coverage for that expensive piece of heirloom jewelry, a wedding ring, or keepsake that would cost more than $1,500 to replace. It's incredibly affordable and covers all the same things as your home insurance or renters policy, plus accidental loss. My sister's stone would be covered with this type of insurance policy. Another benefit is there's no deductible when you need to file a claim.
There are a few minor exclusions, like loss or damage from insects or vermin and nuclear war, but that shouldn't be a big problem! Normal wear and tear are also excluded, so take good care of your jewelry and store it in a safe place when you don't have it on.
What do you need for a jewelry claim?
It's best not to wait to get these items in place. That will make the process much easier in the event you need to file a claim. Have copies of your receipt and a picture of your jewelry on file, along with other important items in your home inventory. It's also a good idea to have expensive jewelry professionally appraised from time to time, especially to update your insurance rider.