5 Reasons Not To Put Jewellery On Homeowners Insurance

Jewellery is a valuable asset and should be protected by insurance so that you can replace or repair it if need be. Many people think that they can simply add their jewellery to their homeowners insurance, but this comes with many pitfalls. The ideal jewellery insurance policy should be from a company that specialises in jewellery insurance. And if you’re still thinking of adding your jewellery to your homeowners insurance, here are 5 reasons why it’s not a good idea!

1. Homeowners Insurance Won’t Cover all Risks With Jewellery

If you include jewellery in your homeowners insurance it will only be covered for the risks specified for the rest of your home and possessions. For example, you would be covered for fire damage and theft, but not for cracking the diamond in your precious ring, or for your child flushing your watch down the toilet. Another important risk not covered by homeowners insurance is mysterious disappearance. If your jewellery goes missing and you’re not sure if it was stolen, fell off when you were wearing it or if it was misplaced, it won’t be covered by your homeowner’s insurance.

2.  Homeowners Insurance Gives Jewellery Limited Coverage

A standard homeowner’s insurance policy covers jewellery as “high-value personal property” for up to $1,500-$2,000 cash reimbursement. Jewellery is considered high risk because it can easily be lost or stolen. This amount of money is usually not enough to replace an engagement ring or other precious jewellery. So you might get some monetary compensation but never enough to replace your jewellery with pieces of equal value. With a stand-alone jewellery insurance policy from a company that specialises in jewellery insurance, you would get compensation that covers the replacement of your jewellery with a piece of the same quality and value.

3. Jewellery Rider or Floater Insurance Extension Still Won’t Be Enough

Homeowners insurance may offer a jewellery rider, floater, or endorsement which increases the coverage of your jewellery for a higher premium. This is known as scheduled personal property coverage. But even with a rider or floater you probably would not be able to replace your jewellery with a piece of equal value and quality. If your homeowner’s insurance offers you a rider or floater, check what extra coverage you are getting and at what price, for example, does it include mysterious disappearance or loss when you are on vacation. For the additional cost of a rider, you could get stand-alone jewellery insurance that will give you more coverage for your money.

4. A Claim on Your Homeowner’s Insurance Will Raise Your Premium

If something happens to your jewellery and you make a claim on your homeowner’s insurance the cost of your premium (the amount you pay monthly or annually for your homeowners insurance) will go up in the future. And in some cases, the company might even make renewing your homeowners insurance difficult and impose new conditions and fees.

5. Jewellery Is Not The Same As a House

Homeowners insurance companies are experts in insuring houses and real estate, but they are not experts in jewellery. The policies do not cover the many perils that can happen to jewellery. Homeowners insurance will cover jewellery in the event of theft, lightning, fire, hail, windstorm, explosions, smoke damage, vandalism, falling objects, volcanic eruption, damage caused by vehicles, snow damage, water damage, civil disturbances, and electrical damage. But as you can see these are perils that houses encounter and not the kind of perils that happen to jewellery. Where is loss of jewellery, or damage when a ring setting comes loose? Where is coverage for jewellery forgotten in the gym, eaten by the dog, or swallowed by the pool filter? Homeowners insurance is great for covering risks faced by homes but it does not cover common perils faced by jewellery. Most importantly, standard homeowners insurance does not cover theft that occurs outside the home. So if you are mugged, or the jewellery is stolen from your hotel room, your homeowners insurance will probably not cover it.

A Better Alternative to Homeowner’s Insurance

With a stand-alone jewellery insurance policy from a reputable company that specialises in jewellery insurance you’ll get:

• A settlement that covers the cost of replacing your jewellery with a comparable piece. Some companies will cover jewellery at 125% of the value. 
• Coverage for the most common risks to jewellery such as theft, loss, damage, and mysterious disappearance.
• Expert professional advice from people who have experience dealing with jewellery insurance.