Most homeowner policies provide very limited coverage for high-valued items. The reason? Valuables, such as jewelry, may be easily lost or destroyed and vulnerable to theft. If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage. A few options are available such as buying supplemental insurance that is attached to your home insurance policy or purchasing a separate jewelry policy.Discussing what is needed and expected from separate coverage is very important.
Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.
A standard homeowners policy offers a limit equal to half of the amount reserved for the residence (ex. Your home is covered for $150,000, so your contents and furnishings are covered for $75,000). While this is generous coverage, it doesn't extend to all types of property nor for all causes of loss. Certain types of property, because of its high value and liquidity, is far more vulnerable to loss...either easily destroyed, easily stolen or both. So, to compensate for this difference, insurers use coverage restrictions.
Theft Coverage Limitations
When property is lost due to theft, coverage under a standard homeowner policy is severely limited (generally $1,000 - $2,500) for the following types of property:
Other Coverage Limitations
Several categories of property are subject to very modest limits ($200 - $2,500) of coverage, regardless of the cause of loss (theft, fire, accidental breakage, etc). Specifically:
Handling The Limited Coverage Situation
Insurance companies are happy to provide more coverage, if they are paid for their exposure. Specifically, limited coverage can be handled using the following methods:
Another Advantage Of Special Handling
In order to arrange coverage under a schedule or an inland marine policy, the property must be properly valued. This often involves appraising the property. It's very helpful to have an expert source establish the current value of jewelry, furs or other valuable possessions. In fact, such property should be appraised every two or three years since their values often increase over time.