Everyone is familiar with common coverages such as homeowner’s or renter’s insurance. However, some of the most valuable assets in your home are most likely unprotected. This can include a wide variety of valuables such as jewelry, vintage watches, high-value artwork, handbags, model trains, or coins, just to name a few.
Although you likely have a comprehensive insurance policy, many policies limit coverage or completely exclude coverage on jewelry and other valuable items. In this blog, we will discuss how collectibles insurance can help you adequately protect your valuable assets.
Check Your Coverage First
Before purchasing a form of collectibles insurance, you need to check your existing coverage. Standard renter’s or homeowner’s insurance will usually cover jewelry or other valuables lost to fire or theft up to a certain limit. The coverage limit often ranges from $2,500 to $10,000 depending on your policy. It’s important to know what your coverage limit is and under what circumstances are you covered.
Questions to Ask
When looking around for the best insurance policy to protect your jewelry and other valuable items, keep these questions in mind:
- Will I be required to purchase a replacement and then request reimbursement, or will the insurer provide me with the lost amount first?
- Do coverage limits fluctuate depending on the price of my assets?
- How often should I update appraisals?
- What proof of loss or damage will I be required to provide?
- What exclusions does the policy have? What will not be covered?
Although jewelry/collectibles insurance is an essential part of protecting your valuable assets, you never want to have to utilize it. That’s why, in addition to asking these questions, now is the best time to invest in a high-grade home safe or effectively theft-proof your home.
Owners of valuable jewelry or other treasured collectibles have options. One is to get your assets “scheduled” under your homeowner’s policy. Known as “floater” policies, these add an extra level of protection for individual items you want to be insured. Floater insurance will help cover full replacement costs in the event that the asset is lost, stolen, or damaged in a fire/flood. Another key advantage of floaters insurance is that, unlike homeowner’s policies, floaters often carry no deductibles. Keep in mind that floater insurance will not cover normal wear and tear, deterioration, or inherent vice.
Assessing the Value of Assets
To get floater insurance, you usually have to get your valuable items appraised by a professional. Assessing the value of jewelry is typically straightforward and can be appraised at a reasonable cost by a certified gemologist.
Other items, such as family heirlooms or niche collectibles can be a little more tricky. You will need to find an expert that is accepted by the insurer. Although this may differ from insurer to insurer, it is often required for valuables to be re-appraised every three years.
Additionally, one of the only downsides of floater insurance is that if you make a large claim it can significantly increase the rate of your homeowner’s insurance. A common way around this is to insure your high-value possessions through specialty insurance.
Secure Your Valuables With Professionals in the Industry
When it comes to something as important as your valuable jewelry or family heirlooms, you want to hope for the best but prepare for the worst. That’s why our team at COBIA Insurance is here to help you adequately protect your assets. In addition to providing homeowner’s insurance, we can help you explore your options for jewelry/collectibles insurance.
We pride ourselves on building lasting relationships with clients and protecting you no matter what your needs are. For more information on our insurance services, please contact us today to set up an appointment.