Putting Insurance at the Heart of Valentine’s Day

I bet the word ‘insurance’ is not the first word that comes to mind when you think of Valentine’s Day. However, did you know that jewelry losses are among the most frequent home insurance content-related claims?

Homeowners policies are very important because they provide coverage for our personal property, like Valentine’s Day jewelry, but there are often coverage limits to them, and some policies don’t protect against all types of loss. Sometimes these limits do not cover the full value of your item. The kinds of risks for which coverage is provided depends on the form of policy that you purchase from your insurance company. Some “forms” may cover all risk, while some may be only for named perils, i.e., fire, windstorm, theft, and vandalism. That’s why it’s important to rekindle your relationship with your insurance agent and have a real ‘heart to heart’ on your needs and the type of coverage you need to protect your property. It is Valentine’s season, after all!

What happens if your new ring gets dropped down the sink? Do you have proper coverage for that kind of accident?

Unfortunately, these types of accidents are not typically covered by your homeowner’s insurance policy – unless you purchase an add-on to your policy such as a jewelry floater policy or an endorsement to your homeowner policy. While adding a rider might slightly increase your insurance policy, it doesn’t come with a deductible. That means that if your Valentine’s Day gift just disappears out of nowhere, you won’t have to pay for expenses out-of-pocket.

With valuable items, two of the biggest snags that policyholders run into at the time of a claim are proving that an item is missing or stolen and establishing a value for the items. Proving the value (“proof of loss”) of items is imperative when it’s time to file a claim. Claims are simpler and faster for policyholders when they have photos of valuable items and collections, receipts or appraisal reports, and a written inventory.

To ensure that you are protected from theft, “mysterious disappearance,” and other incidents, you can take the following steps:

Contact your insurance company to notify them of the new purchase.
Review the coverage and deductible of your current homeowner’s insurance policy.
Keep a copy of the store receipt or appraisal describing the item and the value.
For family heirlooms, get an appraisal.
Add the item to your home inventory and make sure to include photos for possible future claims.

It’s important to review your homeowners insurance policy to see if your current plan is enough to cover the actual worth of your jewelry, particularly if you just added a major piece, such as an engagement ring to that collection.

Consider the circumstances that may impact your insurance premiums and deductibles. For example, insurance companies may charge you more if the item is worn every day, increasing its exposure to loss, damage, of theft. On the other hand, you may qualify for a discount if an item is stored in a home safe, a safe deposit box at the bank, or if your home has a burglar alarm system.