Jewelry, Other Expensive Gifts for the Holidays May Require Special Coverage

Jewelry sales are expected to more than double in December, according to the U.S. Census Bureau. Expensive holiday gifts are a good reason to review insurance coverage, according to the Insurance Information Institute (I.I.I.).

Standard homeowners and renters insurance policies include coverage for personal items such as jewelry. However, many policies limit the dollar amount for theft of valuable personal possessions such as jewelry, furs, and precious stones from $1,000 to $2,000 total.

“To properly insure jewelry and other expensive items, consider purchasing additional coverage through a floater or an endorsement,” says Jeanne Salvatore, the I.I.I.’s vice president of Consumer Affairs. “In most cases, the items would also be covered for what insurance companies term ‘mysterious disappearance.’ This means that if your ring is lost, either inside or outside the home, you would be financially protected.”

Prices for floaters and endorsements vary, depending on the type of jewelry, the insurance company one chooses, where the individual lives and where the item will be kept. With floaters and endorsements, there are no deductibles and frequently individuals will get the option of having the insurance company replace the item for them, according to Salvatore.

“There is no way to put a dollar value on sentiment,” cautioned Salvatore. “In these cases, it’s important to know what you have, what it’s worth and have proper insurance coverage.”