Should you insure your new jewels?

The wild ride through the holiday season is wrapping up; we’ve made it through Christmas and into the New Year.  Let’s talk about your new gifts for a moment. A new piece of jewelry can add a sparkle to your life. Maybe it is an engagement ring that caught you by surprise this holiday season, or just something unique to brighten your day.

These pieces of jewelry usual mean more than just being a gift, especially engagement rings and wedding sets.  These are reminders that you’ve found that amazing person you are about to walk through life with, your partner and soulmate.

Think with me for a minute, if you took your time to find your special person, you saved up to buy her a ring as a statement of your love and appreciation, wouldn’t you want to protect it?  Even the most careful of people experience life’s little curveballs: ring slips off while washing dishes, ring rolls off with waves at the beach (yup, this happens!), or maybe it’s something else.

Not only would you be devastated if this happened, but you would be hoping it could be replaced and quickly.  

So let’s look at a few ways you could be covered through your Homeowners or Renters Policy:

Your policy already has built-in coverage for stolen items. But there is typically a limit to it ($3,000).  Your engagement ring is probably worth more than $3,000. So where would the rest of the money come to replace it?  Don’t leave yourself with a gap in your coverage when the solution is so simple.

Let’s dive in and talk options:

Scheduled Personal Property vs. Blanketed Coverage

Scheduled:

We recommend this route when covering jewelry.  It is the ultimate protection with no deductible.  Scheduling your jewelry gives you coverage not only for theft but for those mysterious disappearance events as well.  The good news is there may not even be a deductible associated with this either. However, there is a simple step to take; scheduling requires an appraisal for each piece. We’ve been using the example of jewelry this, but Scheduled Personal Property isn’t exclusive to jewelry. Do you have fine art that you want to protect or other collectibles you would wish to cover? Those can be scheduled as well.

Blanketed:  

Of the two options, this has more restrictions when it comes to replacing an item.  Think about getting cozy on a blanket on the sofa with your loved one. Then the family grows, and now you have kids wanting to snuggle in as well, you may get a bigger blanket to fit the everyone, but you may all be able to still fit under the current one too, not a whole lot of change associated with the addition.  Blanket coverage is similar; it is getting a value for all your valuables you want to be covered and putting a single amount to it. It can be easily adjusted if need be, without providing new appraisals. You may be covering ten items under the blanket or just two it doesn’t matter. With that being said though think about the downfall, you could be subject to a maximum per-item limit and a deductible.  The per-item limit may not cover the price of the item. Mysterious disappearance covered?

What other steps do you need to take:

We already talked about appraisals.  When an item is scheduled, it will most likely need a current appraisal, within the last 5-7 years.  Alright so you have to drop your ring off for a day at the jeweler and pay a small fee for the appraisal, so what!  That day will be well worth it when you come back from vacation without the sparkly diamond.

When providing coverage for fine art and collectibles, we also recommend taking pictures of the items.  Smartphones are great! You can make a photo albums for just a home inventory, or you can snap quick pictures and email them to us.  We would gladly hold on to those pictures for you.

Should the unthinkable come to life, you will already have so much on your mind.  You don’t want to think about your valuables and explain them to the adjuster. Pulling up a picture or knowing your agents has a copy of the appraisal would be a relief.  

Let your conversation with the adjuster sound like this, “My team at the Dean Ballenger Agency has an inventory of my items, call them at 317-867-5433.”

Adding coverage for your precious items in the big pictures is very affordable. An excellent way to estimate it is, for every $100 spent on an item it costs $1-2 for coverage on your Homeowners/Renters Policy.  You never want to has to use this, but like mentioned there already those “mysterious disappearances” are far more likely than having a valuable stolen. Other ways to proactively protect yourself against these incidences is having your jewelry regularly cleaned and inspected.  This way if a setting is getting loose you can have it fixed without going through the frustration of losing a precious jewel or diamond.