Jewelry Coverage – Blanket vs. Scheduling
Many of us have at least one piece of jewelry with significant value. And almost as many have felt the sure fire panic associated with a piece of jewelry gone missing. Most of the time, we find it laying next to a sink or in the bottom of a suitcase, but what would happen if it was never found? Would you have the insurance coverage necessary to replace it? Your standard homeowners insurance policy would provide some coverage, but how much depends on the type of policy and the endorsements you purchased. Typically, your homeowners policy will provide about $1,500 – $2,500 worth of coverage (minus your deductible) for jewelry that has been stolen or destroyed by a covered loss such as a fire. Often, that amount of coverage isn’t enough, in which case you can choose to insure your valuables with “blanket” coverage or by scheduling items individually on your policy. In either case, higher limits of coverage are offered and covered perils are expanded to include mysterious disappearance. This may come in handy if you leave your wedding ring in a hotel room or you lose a diamond earring at dinner.
Blanket coverage provides a specified amount, or overall limit for a class of property, and most of the time, there will be a “per item” sub-limit. For instance, if you have $5,000 blanket coverage for valuable items, there may be a $1,000 per item limit for jewelry, watches and furs. Blanket coverage is a convenient way to provide higher limits of coverage if you own a handful of items valued at under $1,000 each. Typically, when you add blanket coverage, there is no need for appraisals for each item that you’re insuring, and your deductible is normally waived for loss under a covered peril.
Scheduling items involves a bit more organization and preparedness up-front, and will usually be a bit more expensive as well. If you insure your jewelry on a scheduled basis, you’ll provide an itemized list of valuables to your insurance carrier along with documentation affirming their value, in the form of an appraisal. Each item will be insured at its own, individual value stated on the policy. In the case of a total loss under a covered peril, you are reimbursed for the agreed value. Should you lose or misplace items that belong to a pair (such as the aforementioned diamond earring), most of the time you’ll be reimbursed for the entire set, but you may have to release the remaining part of the set to your insurance carrier.
For more information about insuring your valuable items, please contact me. Together, we can discuss what insurance coverage is most appropriate for your specific needs.