Episode 4 – Family Jewels
I have $20,000 in jewelry and $100,000 in contents coverage am I covered for my jewelry?
Question: I have $20,000 in jewelry and $100,000 in contents coverage am I covered for all of my jewelry?
Answer: Insurance companies have different limits for jewelry, so it is important to check the detailed wordings of your policy. Even if you have $100,000 worth of contents they may limit your jewelry to $10,000 for example. So check the details in your policy.
Additional Info: After you have checked the limits of your policy you may decide to add an insurance floater or schedule the jewelry items on your home owners policy. What this means is if the value of your jewelry exceeds the jewelry coverage limit on your property insurance policy you can purchase additional coverage to ensure your jewelry is properly covered up to the specified limits.
In this case if you have $20,000 in jewelry but your policy only covers up to $10,000 for jewelry coverage you would be in trouble if your jewelry was stolen or damaged. You would only received $10,000 from the insurance company for your jewelry coverage and you would also likely be responsible to pay your deductible. That means you would be on the hook for the other $10,000. If you add a Personal Articles Floater for the $10,000 of excess jewelry you would have full coverage and it is often deductible free.
The Personal Articles Floater also applies for other products or collections such as art, books, or cards. Make sure to ask your broker about your policy limits and always advise if you have collections or memorabilia that is worth a lot of money!