A lot of homeowners do not realize that standard homeowner insurance policies issued by nationwide insurance companies do not automatically cover every little piece of jewelry they own in the event that they get stolen.
In order to avoid being in a situation where the insurance carrier refuses to pay for the entire cost of your stolen valuables, you should do the following actions:
- Inspect your homeowner policy – it is only smart to determine what your policy actually covers in terms of jewelry and up to how much. It is also important that you check the circumstances in which the carrier will pay for the loss of your jewelry. Although most nationwide insurance companies do cover stolen jewelry, the amount could only reach up to $2,000.
- Consider getting a rider – also known as floaters, riders are actually additional policies. You can get one to specifically cover the total cost of your collection. Usually, carriers just charge a small percent of the item’s value. For example, State Farm Insurance would charge about $175 annually for a jewelry collection in New York City valued at $10,000. The amount can vary from city to city.
- Insure your favorite items – many people fail to see that wearing a particular jewelry everyday increases its chances of getting lost or stolen. For this reason, it is important that you also insure items valued at $1000 or more as well as those which you think are irreplaceable or holds a sentimental value.
- Get everything appraised – before you decide to take out a rider for your jewelry, it would only be logical to have them appraised to know their current value. This way, you know how much coverage you will need. According to the National Association of Insurance Commissioners, it is best that you have your jewelry collection appraised every couple of years since its value can change.
- Put it in writing – protecting your valuables is not only the job of nationwide insurance companies. You should also be responsible about keeping the important insurance documents including the appraisal and policy receipt. Make sure that you have made copies of the original and keep them in separate places. Of course, you should ensure that your jewelry are stored somewhere safe.