Jewelry losses are among the most frequent of all homeowners content-related insurance claims. Taking these four steps will ensure adequate protection for your new ring:
1. Contact your insurance professional immediately.
Find out whether you will need additional insurance. Most standard homeowners and renters insurance policies include coverage for personal items such as jewelry; however, many policies limit the dollar amount on jewelry to $1,000 to $2,000. With the average engagement ring costing nearly $6,000, according to The Knot, that is unlikely to be enough coverage.
To properly insure jewelry, consider purchasing a floater or an endorsement policy. In most cases, these add-ons to a homeowners or renters policy would also cover you for “mysterious disappearance.” This means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected. And, unlike a homeowners policy, floaters and endorsements carry no deductibles, so there is no out-of-pocket expense to replace the item.
2. Obtain a copy of the store receipt.
Forward a copy of the receipt to your insurer—so that your company has a record of the current retail value of the ring—and keep a copy for your own records. It’s also a good idea to get a copy of the appraised value of the item.
3. If you received an heirloom piece, have it appraised.
Antique jewelry will need to be appraised for its dollar value. You can ask your insurance professional to recommend a reputable appraiser.
4. Add the item to your home inventory.
An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance and speed up the claims process if you have a loss, so remember to add your new ring to your inventory.
Source: Insurance Information Institute, “Get Insurance for That Ring and You’ll Be a Cut above the Rest” http://www.iii.org website. Accessed November 27, 2020. https://www.iii.org/press-release/proposing-on-valentines-day-get-insurance-for-that-ring-and-youll-be-a-cut-above-the-rest-021116
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