Does My NH Homeowners Insurance Cover Jewelry?

February 1, 2022

As a homeowner, it’s known that protecting your assets with NH homeowners insurance is a must. However, many people don’t realize the extent of available coverage and how important it may be someday. That said, let us pivot to one of the most devastating experiences – to have jewelry that represents special moments in your life become damaged, lost, or stolen. While most don’t associate their homes with their jewelry, our team at Brownell Insurance is here to shed some light.

Jewelry Riders

A jewelry rider is an insurance rider — also referred to as a floater or an endorsement — an optional addition to your homeowners’ insurance policy. By purchasing this rider on top of your standard coverage, the amendment may allow you to increase your coverage limits, expand coverage for a particular property, or extend protection to help cover additional perils.

For example, a specialized jewelry insurance policy provides comprehensive coverage against scenarios like the mysterious disappearance of jewelry. This unexplained loss, in many cases, may not be covered by standard homeowners or renters’ insurance or by warranties. While this may seem an added expense, the extra coverage is surprisingly affordable based on the irreplaceable loss. In general, rates depend on where you live, but jewelry insurance costs 1-2% of the value for most. For instance, a $5,000 engagement ring could cost as little as $50 per year to insure.

How do you know if you need jewelry insurance?

Deciding if you need additional coverage can be overwhelming. Of course, no one wants to pay for something unnecessary. If you’re trying to decide on whether jewelry coverage is right for you, ask yourself these questions:

If my jewelry disappeared today, would I be…

Devastated about the sentimental loss?
Afraid to wear my other uninsured jewelry?
Unable to cover the cost to replace it?
Subject to coverage limits with my current insurance?
Forced to work with a jewelry replacement company and not my preferred jeweler?
Worried about having to settle for a replacement of lesser quality than the original?

If you answered “yes” to one or more of these questions, you should consider coverage.

Tips for protecting your jewelry:

Have the proper coverage amount based on an appraisal,
Keep a copy of the store receipt,
Take a picture of the item,
Secure your jewelry in a safe or safe-deposit box,
When traveling, only bring the minimum. Never leave jewelry in luggage,
Schedule regular jewelry inspections.

Understanding your current policy.

Your homeowners’ insurance policy has standard protection categories that help cover specific risks. Each category is subject to coverage limits and may have restrictions, exclusions, or sub-limits. As mentioned, a rider requires you to pay an extra premium to enhance your standard coverage. If you look at the personal property coverage on your homeowners, you will notice it may limit coverage for certain valuables, such as jewelry.

For example, let’s say that your homeowners’ insurance policy has a coverage limit of $150,000 for personal property coverage. However, after reading further into your policy, it also states that personal property coverage has a sub-limit of $1,500 for jewelry. This means if your jewelry is stolen or damaged by a fire, you’d only be reimbursed up to $1,500 to aid in replacement costs. Now, let us now assume that your jewelry went missing. Unfortunately, mysterious disappearance is not a covered claim under a homeowners policy. However, it would be a covered claim if the jewelry is covered under blanket coverage.

The benefits of investing in a jewelry rider.

Your home insurance rider (called a scheduled personal property rider) can be added to homeowners’ or renters’ insurance. Once added, the rider allows you to increase your base personal property coverage limits on a standard policy to help protect certain valuable items, such as jewelry for replacement value. How do you determine this value? With an appraisal from a trusted jeweler, you will have the number needed to work with your insurance agent.

Being a homeowner comes with many responsibilities. One of those being an investment in NH homeowners’ insurance. At Brownell Insurance, our team of experienced experts can help you understand your current policy, provide you with trusted advice, and offer adequate coverage to ensure your precious jewelry is protected.