Does Home Insurance Cover Jewellery?

Does Home Insurance Cover Jewellery?

While we may think that diamonds and jewels are forever, unfortunately, this isn’t always the case. Whether a burglary in your home resulted in the theft of jewellery that has been handed down for generations or your diamond ring accidentally came off in the bathtub and slipped down the drain, lost or stolen jewellery is especially upsetting because of its sentimental value.

What can make matters even worse, is finding out that you do not have the proper coverage to replace your jewels. Sadly, there are many people that are not aware that they are not sufficiently insured for their jewellery.

But doesn’t home insurance cover jewellery? It typically does but it has a cap. The average home insurance policy will cover between $3,000 to $6,000 for all of your belongings in the jewellery category (this also includes watches and furs) and may also have a maximum amount per item. Chances are, if you lose your diamond engagement ring or a family heirloom, the replacement value will be significantly higher.

So, how do you make sure that your jewellery is properly protected? In the article below, we will explain what you need to know about having your jewellery covered by home insurance.

Coverage for Jewellery

Even if you have just one or two jewellery pieces that are high value, you may exceed the standard home insurance coverage for the jewellery category. To have enough coverage, you need to add an endorsement on your insurance policy to make sure that your jewellery, gems, watches, and furs are protected. Under the endorsement, each piece of jewelry is separately listed.

How Much Do Endorsements Cost

Typically, you can expect to pay somewhere between 1% and 2% of the value of the item or items you wish to insure. For example, if you were to insure your wedding band and engagement ring set that was purchased for $10,000, the endorsement could cost between $100 – $200 per year.

Replacement Value

It is also important to note that most endorsements will cover the items replacement cost. This is important because, with jewellery, these pieces typically increase in value as the years go by. To properly insure recently purchased jewellery, a receipt will suffice, however, every few years you should get your jewelry appraised by a certified gemologist and let your insurance company know if the value needs to be updated. This will ensure that should an unfortunate circumstance occur, that you are covered for the proper amount.

Be sure to also keep receipts and appraisal copies as well as photographs of your jewellery. These can come in handy if you ever need to submit a claim.

Review Endorsements

If you are adding an endorsement to your home insurance policy, make sure that you are aware of exactly what it covers. To make sure that you are making an informed decision, it is helpful to work with an experienced insurance professional that can compare endorsements and help you find the best rate for your needs. For a free, no-obligation quote, contact a member of the Bow Valley Insurance team today.