Engagement ring insurance

Maybe you've just gotten engaged and have a new sparkly engagement ring, or you decided to splurge and buy yourself an expensive necklace. Whatever the occasion, you now have jewelry that should be insured because it would costly to replace if stolen.

Most likely, your current homeowners or renters insurance policy doesn't cover the new ring, necklace or other expensive items you own. Typical homeowners insurance policies will cover personal property for between 50 to 70 percent of the amount of insurance coverage you purchase for the home. If you have $100,000 of insurance, the policy will likely allocate $50,000 to $70,000 for your personal belongings, which includes jewelry.

I thought you said it wasn't covered?
Technically, your jewelry is part of your personal belongings, but there's often a cap on what your insurance company will pay out for each item. Many policies will limit what they will pay to less than $2,000 per piece of jewelry, which may not be enough to cover a stolen engagement ring. Renters insurance policies are the same way.

Don't be fooled if you pull out your policy and it states jewelry is covered - keep reading and if you need more information, don't hesitate to call your insurance agent.

How do I get my jewelry covered?
The first way to insure your jewelry is by adding an endorsement to your policy. The endorsement does not increase your personal property coverage, it just allocates a larger amount to the expensive item of jewelry and leaves you less money to replace your other personal items.

Another way you can insure your jewelry, especially if it's worth more than $10,000, is to buy a separate personal property floater or rider, which gives you additional insurance coverage. With these types of policies, it's important to make sure it covers all types of risks associated with your homeowners or renters insurance policy. Some riders will seek to limit the risks covered for the jewelry, which would limit when the policy would cover and pay to replace the item.

It isn't just about jewelry
The concept of limited personal property coverage applies to more than your engagement ring. It also matters for any expensive artwork, clothing and other unique items you own. If you have valuable possessions, speak with your insurance agent about increasing your coverage or purchasing a separate policy.

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