Do you know jewelry is not covered in most insurance policies? Unfortunately, yes. Majority of policies cover your home and futures, excluding jewelry, artwork, musical instruments, and other valuables. Others limit coverage to some events and up to a certain amount. This is not enough, especially if you seek to replace the item, which has significantly appreciated in value since its purchase.

A homeowner needs to obtain a rider or floater in order to protect his most valuable assets. It is an additional insurance or a provision of a policy purchased separately from the basic coverage, providing additional benefits. It takes effect once conventional insurance coverage lapses, securing items against damage, fire, loss, or theft. Majority of insurers do not offer a separate jewelry coverage. But people can purchase coverage it aside from their existing homeowners’ policy. Most of the insurers also require additional handling for high-end items.

When shopping for the best policy, one needs to clarify the following items:

  • How do they handle claims? Will they be required to buy a replacement, and then request a reimbursement?
  • Does the company shoulder the item’s full replacement cost? How does the insurer compute the amount?
  • Do coverage limits fluctuate with the price of precious gems or metals?
  • How often should a policyowner submit updated appraisals?
  • What is/are the required proof of damage or loss?
  • What are the exclusions in the policy? What types of loss and damage are not included?

Granted, you have decided to add a rider or floater to your insurance policy. Here are some pointers before making any additions.

  • Have the valuable item(s) valuated by a professional to determine its worth for insurance purposes.
  • Take pictures of these item(s).
  • If possible, consider increasing the deductible to reduce the insurance premiums.

Once you purchase a policy, store all the items’ receipts, appraisal paperwork, and photos in a safe, secure place. Keep these items properly when you are not wearing them. Avoid traveling with irreplaceable or extremely valuable jewelry.