Does Homeowners Insurance Cover Damaged or Lost Jewelry?

Jewelry is probably one of the most valuable items you own, but it's also fragile and easily stolen. Unfortunately, this means that it is frequently covered by homeowners insurance in a less comprehensive manner than regular personal property. Continue reading to learn when and how your jewelry is covered, and how to keep your valuables safe.

When is jewelry covered by homeowners insurance?

Your homeowners insurance will cover jewelry that is lost or damaged as a result of a covered peril, such as theft or fire.

• For example, if your home is burglarized while you are away on vacation and thieves steal a necklace that has been passed down through generations, your policy will cover a portion of the value — up to a maximum limit defined by your specific policy.

Common covered insurance perils

• Theft
• Lightning or fire
• Hail or windstorm
• Damage caused by aircraft
• Explosions
• Riots or civil disturbances
• Smoke damage
• Damage caused by vehicles
• Vandalism
• Falling objects
• Volcanic eruption
• Damage from the weight of snow, ice or sleet
• Water damage from plumbing, heating or air conditioning overflow
• Water heater cracking, tearing and burning
• Damage from electrical current
• Pipe freezing

If the loss or damage is caused by a peril not listed above, your jewelry is unlikely to be covered by homeowners insurance.

• For example, if your ring slips off your finger and falls down the drain while you're cleaning, your insurance policy will not cover the loss because it wasn't caused by a peril specifically listed in your policy. Similarly, misplacing or damaging jewelry – even by accident – will not be covered by your homeowners insurance.

Furthermore, if your jewelry is lost or damaged in a flood, you will need to purchase a separate flood insurance policy because a standard homeowners policy does not cover damage or loss caused by a natural flood.

How much jewelry does a home insurance policy cover?

While your homeowners insurance may provide you with $400,000 in coverage, you cannot simply apply that amount to your jewelry. Personal property coverage accounts for approximately half of the total insurance coverage in most policies.

However, because jewelry is considered high-value property that is easily lost or stolen, your policy's coverage limits are usually specified — typically between $1,000 and $2,000.

• For example, if you have a $15,000 diamond engagement ring, your home insurance will only cover the first $1,000 to $2,000 in value. Most of the time, that coverage isn't enough to protect more than one or two pieces of jewelry, especially if some of them are particularly valuable or you have a large collection.

How to increase coverage for your jewelry

If the value of your jewelry exceeds the limits of a standard homeowners insurance policy, you can purchase an additional endorsement or floater. This is a method of increasing the coverage limits of specific high-value items you own, such as valuable family heirlooms. It is also known as scheduled personal property coverage.

Premiums for floaters are determined by the types of items you've added, the value of the items, and your location. There is no deductible for items covered by a floater, unlike personal property coverage provided by your homeowners insurance.

The additional protection that some floaters provide is an added benefit. Some floaters cover you if you lose a ring or leave it at home while on vacation. Because it is not a listed peril, personal property coverage under your home insurance policy would not cover you in that case.

When scheduling the items for which you want to increase coverage limits, your insurer will almost certainly require you to have them appraised, unless they were recently purchased and you have receipts.

When should you get a separate policy for your jewelry?

Jewelry protection insurance is a separate insurance policy that insures only jewelry. Jewelry protection insurance, like scheduling your jewelry with a floater, protects your jewelry from common insurance perils. However, unlike a floater, claims made against a jewelry protection insurance policy do not count as a claim against your homeowners insurance.

The following table compares a standard homeowners insurance policy, a floater, and jewelry protection insurance:

Jewelry protection insurance is an excellent choice if you want to insure high-value or high-risk jewelry, such as a multi-carat diamond ring. As an added bonus, while claims against your home insurance or an additional floater may have an impact on your premium and future insurability, jewelry protection insurance is a separate policy that protects your home insurance rate from any claims.

Most jewelry insurance policies charge between 1% and 2% of the total insured value, which means $10,000 of coverage could cost as little as $100 per year.

Best jewelry insurance companies

Many homeowners insurance companies allow policyholders to increase their jewelry coverage limit by adding an endorsement. Furthermore, some companies allow customers to increase their coverage limit without adding an endorsement, albeit at a lower coverage limit. Homeowners should consider what type of coverage is best for their specific needs.

The following are some of the best jewelry insurance companies.

Lemonade

Through its extra coverage endorsement, Lemonade offers policyholders an exceptionally high coverage limit of $50,000 for jewelry. Other insurance companies with similar endorsements typically do not provide such a high coverage limit. The endorsement is ideal for insuring a single expensive item or a collection of jewelry.

Progressive

Progressive homeowners insurance policyholders can add jewelry coverage as part of a scheduled personal property endorsement or as a separate policy. The endorsement does not impose a deductible before coverage begins. If you're happy with your current homeowners insurance provider, Progressive also offers jewelry insurance as a separate policy with a deductible. Progressive typically charges 1% to 2% of the total value of your jewelry for one year of coverage.

State Farm

State Farm is an excellent option for those who believe they require jewelry insurance but do not require a high coverage limit. Under State Farm's standard homeowners insurance policies, jewelry coverage limits begin at $2,500. However, according to our sample quotes, increasing your coverage limit to $5,000 would only cost you an extra $17 per year.

How to file a claim for lost or damaged jewelry

If your jewelry is stolen, you should first report the theft to the police. Make sure to provide as much information about the stolen jewelry as possible, and request a copy of the police report for your insurer. If your jewelry is damaged due to a cause covered by your insurance policy, take pictures of the damaged pieces as well as the source of the damage.

The next step is to contact your homeowner's insurance company. If you have separate jewelry protection insurance, you must contact the insurer of that policy rather than your home insurance company. When you contact your insurer, you will be required to provide information about what happened to your jewelry. You may be required to pay a deductible before beginning the replacement or repair process, depending on the type of coverage you have.

Your insurer may insist that you use a jeweler or another company of their choosing. With a jewelry protection insurance policy, your insurer will allow you to have repair or replacement work done at a jeweler of your choice, and will replace the missing or damaged piece with the same type and quality of jewelry. The appraised value of your jewelry after you pay your deductible, if your policy has one, is the amount covered by jewelry protection insurance.

Methodology

LowCostInsurance gathered sample quotes and compared coverage options from three major home insurers to find the best homeowners insurance companies for jewelry coverage: Lemonade, Progressive, and State Farm.