Navigating Jewelry Coverage Gaps in Homeowners Insurance
With Valentine’s Day around the corner, the gift of jewelry is on many minds. However, it’s crucial to be aware that a standard homeowners insurance policy might not provide sufficient coverage for these valuable items. In this blog post, we’ll explore the common issues with jewelry coverage in homeowners insurance and offer practical solutions to ensure your assets are adequately protected.
Issues with Jewelry Coverage on Standard Homeowners Insurance:
1. Covers Like Kind and Quality, Not Full Value:
– Homeowners policies often cover jewelry based on like kind and quality, potentially leaving you underinsured if your pieces are appraised at a higher value.
2. Theft Limitation:
– Many policies impose a theft limitation, typically around $2500. If your jewelry exceeds this limit, your coverage may fall short in the event of theft.
3. Loss of Stone or Mysterious Disappearance:
– Standard policies may not cover the loss of a stone or mysterious disappearance, creating ambiguity in situations where the cause of loss is uncertain.
Solutions:
1. Increase Special Coverage for Jewelry:
– While this may raise the theft limit, it doesn’t address issues like covering the appraised value or loss of stones.
2. Purchase a Personal Articles Floater:
– Obtainable as a standalone policy or as an endorsement on your homeowners policy, a personal articles floater offers practical benefits:
– Agreed Value: Settle on the value upfront, avoiding negotiations during a claim.
– Covers Loss of Stone: Protects against the loss of valuable gemstones.
– Covers Mysterious Disappearance: Provides coverage even when the cause of the loss is uncertain.
Additional Items to Consider Scheduling:
Beyond jewelry, other valuable items like firearms, art, antiques, and collectibles may also benefit from individual scheduling or a standalone personal articles floater.
When is the last time you evaluated your coverage?
Ensure your jewelry’s protection aligns with its value. Take proactive steps to address potential coverage gaps and safeguard your valuable assets. If uncertain about your homeowners policy’s response to a jewelry claim, contact Hurley Insurance Brokers to consult with our knowledgeable team. Your peace of mind is our priority.
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