One of the primary components of your renters insurance is your possessions coverage. It is designed to help you repair or replace belongings lost to multiple types of unexpected or unavoidable hazards.
Among your most important possessions are any items of jewelry, particularly those of significant value. While on its face, your renters insurance will likely cover jewelry if it gets stolen, damaged in a fire or lost in another unpreventable accident, there might be conditions attached. A piece of jewelry’s exceptional value often requires you to obtain more specific coverage within your renters policy. Here’s what you are likely experience when you attempt to get this benefit.
How Jewelry Is Covered By Renters Insurance
Jewelry is a high-value, high-risk commodity, and it’s likely to cost your renters insurance carrier a lot of money if you file a claim for a loss. As a result, many insures place a maximum limit on how much they will pay for jewelry that is even less than your total amount of possessions insurance.
For example, though you might have $25,000 worth of possessions insurance, a sublimit within your plan might limit the full compensation for any lost jewelry to $1,000. Realistically, you might need far more coverage than this to adequately insure your jewelry for its full value.
Expanding Your Homeowners Policy
To update your renters policy to appropriately cover your jewelry, you will likely need to schedule it. Scheduling an item means adding an endorsement to your plan that will offer specific coverage for the value of a high-value or unique item that might need more coverage than the standard limits of the policy allow. Jewelry usually falls under this definition.
Usually, it only takes a few extra steps to schedule an item on your policy. Some of the steps that insurers might require you to take include:
Photographing the item from several positions.
Providing proof that you own the piece, such as a receipt or bill of sale.
At this time, the insurer will be able to add the piece of jewelry to your policy. From that time, any claim for damage to or loss of the item will receive compensation that more closely represents the true value of the item.
The good news about scheduling jewelry on your renters policy is that it often adds only a marginal additional premium cost. Therefore, for just a few extra dollars per month, you’ll be able to receive astronomically more financial assistance in case you ever face the loss of this precious asset.