By Catherine Powell
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| Image courtesy of Max Pixel |
When it comes to insuring your jewelry
there are two things you need to know:
1.
It’s
the second thing thieves are after when they break into a home.
2.
It’s
quite possible your homeowner’s policy isn’t going to cover the loss in full.
Let’s say you come home from the office or
after going out to dinner only to discover that thieves have broken into your
home while you were away. After calling
the cops, you start to assess what’s been stolen. Depending on how long the thieves hung
around, your home could be in a shambles, since most thieves will open up and
dump out every drawer in your house looking for valuables. They will most likely also rifle through your
closets, crawl spaces and the attic to try to find where you’ve stashed your baubles. Along with hi-tech laptops and digital
cameras, which are easy to sell online, the thieves will look for cash and
jewelry. By the time you finish filing a
police report, the next thing you’ll want to do is take inventory of what was
taken so you can file a claim with your insurance company. Here’s where things get tricky.
How
Much of Your Stuff is Covered?
If you haven’t done so recently, I suggest
you take a look at your homeowner’s policy as soon as possible. Pay close attention to the line that reads
‘unscheduled personal property.’ There
will be a number associated with it, such as $15,000 which is a typical amount. What this notation is telling you is that
your policy limits you to compensation of no more than $15,000 for personal
property that has not been listed on your policy. What this translates to is a limit of $15,000
that can be paid to you for personal possessions lost, such as when your home is
burglarized. If the stolen items add up to more than $15,000,
you’re out of luck unless the items were ‘scheduled’ by being listed separately
on your policy.
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| Image courtesy of PxHere |
Just like other items you choose to
insure, if the item is lost or destroyed, not only do you have to prove how the
incident occurred, you also need to verify the item’s worth. Here are a few other tips to consider:
1.
What
if you don’t have a receipt? – While it should be simplicity itself to produce
a receipt for that Rolex watch that burglars made off with, what about the
heirloom diamond brooch that your grandmother gave you ten years ago? If you want to claim a loss, you need a
receipt. That means if grandma didn’t
provide you with one, you need to take the brooch to a jeweler to have a
certified appraisal. Make sure you keep
receipts and certificates of appraisal somewhere other than in your home, since
if a fire breaks out, the last thing you want is to have your receipts go up in
smoke.
2.
How
and where was the item stored – While professional thieves can get into many
means used to store valuables, insurance companies will take into consideration
how you protect them. This means it
costs less to insure jewelry that is stored in a bank vault or safe deposit
box, then it is if the item is kept in the jewelry box on your bureau. Also taken into consideration is the amount
of security present in your home. That
means if you have an expensive burglar alarm, mention this to your agent when
you request a quote.
3.
Photograph
your jewelry – Not only will this make it easier to file a claim, but it will
make it far easier to inventory in the case of theft or fire. Always photograph the item from several
angles, since wear and tear is taken into consideration in determining a lost
item’s value.
4.
Where
not to wear jewelry – While you may love to display your baubles, there are a
number of times and places where they should NOT be worn. Working on the plumbing, digging in the
garden, or working out in the gym are places that put your valuables needlessly
at risk. Don’t automatically assume that
if your jewelry is pilfered from your locker at the gym or country club that
the club owner is going to compensate you for any loss. Chances are they have a notice published in
the locker room stating you’re on your own.
Even hotel room safes are not immune from theft. If you want your jewelry protected, talk to
the hotel manager. Many hotels offer
safe deposit boxes to guests for a nominal fee.
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| Image courtesy of flickr |
6.
The
value of an item can change – Everything from wear and tear on an item to the
price of gold and silver has a bearing on the replacement value of jewelry. Since the objective of insuring your valuables
is to be able to replace them should they be lost, stolen or destroyed, you
need to make sure your appraisals are up to date and the photos of the items
are recent. If not, the insurer may not
give you as much for the item as you think it’s worth.
7.
Talk
to your agent – Insurance is by no means a 1-size-fits-all industry. There are many factors that determine what’s
covered, what’s excluded and how the value of your items is determined. The best advice you can get if you want to
bulletproof your bling is to ask your agent how your coverage works. I also advise you to have your insurance coverage
analyzed yearly, or any time you make a move or a major acquisition.
Catherine Powell is the owner of A Plus
All Florida, Insurance in Orange Park, Florida.
To find out more about saving money on your auto insurance, check out
her website at http://autoinsuranceorangeparkfl.com/
Nothing worse than getting robbed, unless it happens a second time when you file an insurance claim only to find out it won't cover the loss in its entirety.
ReplyDeleteI wonder how many people out there have accumulated lots of bling and are under insured because they just haven't thought about it yet?
ReplyDelete