Valentine’s Day is famous for being a day of romantic dinners, beautiful flowers, and expensive gifts. It is also a popular time for engagements, making this the perfect time for jewelry. All of these are meant to show your partner how much they mean to you; however diamonds are not forever and these expensive gifts are just as easily lost or stolen as any other high-value purchase. After all, diamonds are a thief’s best friend, so this year make sure to show how much someone is worth by protecting their valuables on an insurance policy. The responsibility of insuring items rests with the recipient of the gift if they are not your spouse. They will need to add it to their policy, so you will not be able to insure it for them unless you are married to them.
So, what can you protect on your policy? Homeowners insurance will protect valuables such as jewelry from circumstances such as fire and other major damage for the items full value. This would refer to a damage-oriented coverage. However, in the case of theft, a policy usually has a limit of up to $1-or-2-thousand for the total amount of jewelry. Renters insurance usually puts jewelry into a sub-limit group, which would cover the total amount of stolen, damaged, or lost jewelry for around $1,500.
These limits may not seem like enough to cover your valuables, however special coverage can be purchased to provide protection, sometimes without a deductible, to help insure your high-value purchases. This coverage is called a floater or an endorsement and typically costs 2% or less, per year, of the items value. This is why getting your valuables appraised is so important- if you have the item under-appraised and it needs to be claimed for repair or replacement on your insurance, you won’t receive the amount necessary to do so.
If you are not a homeowner or renter, do not worry. You are able to purchase a separate policy for your valuable items. This may cost more than an add-on to a current policy, but it is still an option. This is also useful if you are between homes or traveling for an extended period of time.
Something that is important to remember is the fluctuating value of materials as well – items that are limited or collectible, such as Rolex watches, increase in value. This means that they should be appraised regularly and that these appraisals should be submitted to your agent so that you aren’t undervaluing your items. A purchase can go up in value over time, so you need to make sure that you are covering its most recent value and not what it was worth 5 years ago.
What are the steps you should take when you purchase high-value items?
- Have the item inspected for damage or lose stones
- Have the item appraised (separate appraisals may be advised if you want a cost comparison)
- Contact your insurance agent to let them know that you have made the purchase. Learn how much coverage is provided and if you need a floater/endorsement to provide more coverage
- Store your valuables securely and keep an inventory with photos to make referencing items easier and comprehensive in case of a claim
If you have any questions or concerns about your high-value purchases and want to make sure that they are protected, please reach out to us! You can call us at (901)388-7283 or email us at [email protected] to speak with a member of our team. You can also text us at (901)350-2874. We are here to help you and look forward to helping you protect the precious things in your life. Happy Valentine’s Day!