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Is Lost or Stolen Jewelry Covered by Homeowners Insurance?

Personal jewelry items can be extremely valuable. For example, the average cost of an engagement ring in the U.S. is $7,829, as reported by Brides.com. A strand of South Sea pearls can be worth more than $100,000, as stated by The Pearl Source. If jewelry is lost or damaged because of a covered peril, such as theft, it is covered by homeowners insurance, up to specific limits. 

What Are the Common Covered Perils?

Your homeowners insurance policy will likely reimburse you for lost or damaged jewelry, up to the stated policy limits, if the loss was caused by one of the following common perils:

  • Fire
  • Lightning
  • Theft
  • Explosions
  • Smoke damage
  • Vandalism
  • Hail or windstorms
  • Falling objects
  • Vehicle or aircraft-caused damage
  • Volcanic eruption
  • Riots
  • Water damage
  • Electrical current damage

When Is Jewelry Not Covered By a Homeowners Policy?

Your homeowners insurance will not cover loss or damage to valuable jewelry if it was not caused by a covered peril. For example, if you drop a diamond ring down the drain and are unable to retrieve it, your insurance company is not likely to reimburse you for the loss. The same applies if you accidentally damage a piece of jewelry, for instance, by exposing it to harsh chemicals while cleaning the oven. As standard homeowners policies do not cover flooding, jewelry lost or damaged in a flood is not covered. 

How Much Jewelry Coverage Will a Homeowners Policy Provide?

Whatever the policy limits of your homeowners insurance, you cannot apply the entire amount to jewelry coverage. Your policy will specify personal property coverage limits at a certain percentage of the total policy – usually approximately 50%. However, as this type of property is considered easily stolen and of high value, many homeowners policies set coverage limits specifically for jewelry, often as low as $1,000 or $2,000. 

How Do You Get More Insurance Coverage for Valuable Jewelry?

Floater

If you have valuable items of jewelry, you may want more coverage for this property than standard homeowners insurance will provide. One way to get it is to purchase an endorsement for scheduled personal property coverage. The cost of this additional coverage will depend on various factors, including the location of your residence and the number and value of the items you want to insure. In addition to increasing your coverage limits for jewelry, this type of endorsement (also known as a floater) may protect you against certain additional losses, such as accidentally losing your engagement ring. 

Jewelry Protection Insurance

Another option is to purchase separate jewelry protection insurance. This type of policy is separate from your homeowners insurance, and any claims made against it will not affect your future homeowners insurance premiums. Jewelry protection insurance covers all events, including accidents and damage caused unintentionally, up to policy limits based on the appraised value of the jewelry. Cost is also based on where you live and the number and value of items being insured. 

Our agent can advise you on the different options and help you find the best coverage to protect your treasured jewelry items.