A standard homeowners policy includes coverage for jewelry and other
precious items such as watches and furs. These items are covered for
losses caused by all the perils included in your policy such as fire,
windstorm, theft and vandalism.
However, there are special limits of liability for certain items,
meaning that the insurer will not pay more than the amount specified in
the policy. One important limit is for the theft of jewelry. To keep
coverage affordable because jewelry can be easily stolen, the standard
policy has a relatively low limit of liability for theft, generally
$1,500.
If you own valuable jewelry or other items that would be difficult to
replace, there are two ways you can increase coverage: by raising the
limit of liability or “scheduling” your individual pieces through the
purchase of “floater” policies. Raising the limit of liability is the
cheapest option; however, there may be a limit on the amount you can
claim for the loss of any individual piece, say $2,000, when the overall
limit is $5,000.
Scheduling each piece or item may cost more in premiums, but it offers
broader protection because the floater covers losses of any type,
including accidental losses—such as dropping your ring down the drain of
the kitchen sink or leaving an expensive watch in a hotel room—that
your homeowners insurance policy will not cover. Before purchasing a
floater, the items covered must be professionally appraised. The cost of
this service varies depending on where you live.
Posted by
Tina Jackson Insurance Santa Barbara
at
1:52 PM
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Labels:
Homeowners insurance,
Homeowners insurance Santa Barbara,
Insurance
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