Does Homeowners Insurance Cover Jewelry?

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Is jewelry covered under standard homeowners insurance policies?
When and how does homeowners insurance cover jewelry?
How much do I have to pay if homeowners insurance does cover my jewelry?
If homeowners insurance doesn’t cover my jewelry, what will?
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Is jewelry covered under standard homeowners insurance policies?

As a new homeowner, I’m curious about what all is covered under my insurance. I have a sizeable jewelry collection and some items are especially valuable. I worry about misplacing my jewelry or it getting stolen. Is jewelry covered under standard homeowners insurance policies?

Yes, it is. Just like any other type of personal property, homeowners insurance provides coverage for jewelry in the same scenarios it would for everything else. However, if a piece of jewelry is extremely valuable, you might want to purchase extra coverage to insure it for the full replacement cost. There are also specialized jewelry floaters that you can buy.

When and how does homeowners insurance cover jewelry?

A standard homeowners insurance policy provides coverage for jewelry in a few different scenarios. Jewelry falls under the personal property category of homeowners coverage, and it’s treated the same way as many other things under the policy—with one major difference. Jewelry has its own special coverage limit under your personal property category, but we’ll get more into that later. First we’ll take a closer look at the most common covered scenarios.

Homeowners insurance covers jewelry in the following scenarios:

• Someone breaks into your house and steals your jewelry.
• You misplace your jewelry and can’t find it again. This coverage is known as “mysterious disappearance.”
• Your jewelry is destroyed or lost due to a covered natural disaster.

Natural disasters commonly covered by homeowners insurance include:

• Windstorms
• Hail
• Fires
• Blizzards

Natural disasters typically not covered by homeowners insurance include:

• Floods
• Earthquakes
• Mudslides

If you’re worried about protecting your more expensive jewelry, you’ll want to schedule each separate piece on a jewelry floater. A jewelry floater is a special type of inland marine insurance designed for valuable jewelry. You’d first have to get your specific pieces appraised by a professional jeweler, then send that appraisal to an independent insurance agent. The agent would then be able to help you get the right coverage for your pieces, probably for their full value.

How much do I have to pay if homeowners insurance does cover my jewelry?

After paying your deductible, you’ll be responsible for paying any amount exceeding your homeowners policy’s limit for the jewelry category under personal property coverage. This limit will vary by each specific policy. If you have a bad break-in and a lot of your stuff gets stolen, the values for all that property will add up quickly. If you have several highly valuable pieces, you might want to increase your coverage or get special jewelry floaters.

A standard homeowners policy has a deductible that’s typically 1% of the home’s value. So if your home is worth $300,000, you might have to exceed $3,000 in stolen or damaged personal property before your insurance will start paying. You could easily lose a lot of money this way. If you have valuable jewelry or other kinds of property you want covered, it’s a good idea to work with an experienced independent insurance agent to get a policy with a lower deductible.

If homeowners insurance doesn’t cover my jewelry, what will?

Your jewelry will be covered up to your homeowners policy’s limit for the jewelry category under personal property, but your jewelry might easily exceed that, especially if it’s lumped in with a bunch of other property you need to get reimbursed for at the same time. Consider looking into special jewelry floaters for valuable pieces. Having this extra, specialized coverage will help you get reimbursed for the jewelry’s full value, so you don’t have to worry about losing money.