Have you received an expensive gift recently? If you’re now the proud owner of an additional piece of jewelry, a fancy electronics device or other expensive item, contact your insurance representative to see if you have enough coverage in your homeowner’s insurance policy. If the value of the item is particularly high, it’s possible that it will exceed specified limits on your homeowners policy, which means you may not be protected if something happens to it in a natural disaster, a fire or it’s stolen.
Also, ask your representative if your policy is for replacement cost or actual cash value coverage. Replacement cost will replace lost or stolen items up to policy limits, without taking a deduction for depreciation. Actual cash value coverage pays the cost of the lost item, minus depreciation.
Jewelry, electronics or art may need to be covered under a “rider,” or “floater,” policy. That will provide additional coverage for those items if they exceed limits of your current policy.
If you’re considering obtaining a policy to protect your jewelry, it’s advisable to get an appraisal first because your premium will be based on that amount. If something should happen to the item, you would be covered up to that dollar amount.
It’s important to keep the appraisal document, as well as the receipt for the purchase, with your insurance policy or other vital documentation. Check with your insurance representative for authorized appraisal sources.