If your special someone got you something shiny this Valentine’s Day, you’re probably eager to wear it, but have you thought about how to properly protect it? Although insurance may not cross your mind amidst the excitement of receiving a nice gift, it’s an important factor to consider.
According to the Insurance Information Institute (I.I.I.), Valentine’s Day represents one of the biggest gift-giving holidays, with jewelry and watch sales expected to increase 7 percent this year, rising to an estimated $4.4 billion. While there’s no way to insure the sentimental value of jewelry you receive from your significant other, it’s important to ensure that your new accessories remain financially protected.
You may wonder whether you already have coverage for your valuable possessions under your homeowners or renters insurance policy, and the answer is yes, to a certain extent. However, the I.I.I. reports that many policies limit the amount of coverage for the theft of personal possessions like jewelry to $1,000 to $2,000. In these cases, you would be covered if a piece of jewelry was destroyed in a fire or hurricane for instance, but to have full coverage in the event that your jewelry is lost or stolen, you will likely need additional insurance. However, since coverage varies from one insurance company to another, it’s a good idea to review your policy with your insurance agent to ensure that you understand your coverage limits.
If you discover that you need additional coverage to fully protect your expensive jewelry, you may purchase it through policy add-ons known as floaters or endorsements, which carry no deductibles. Another option that some companies offer is a stand-alone policy to cover jewelry, that doesn’t require you to purchase a full home or renters insurance policy.
However, if you don’t have a homeowners or renters insurance policy in place, you may wish to consider securing this coverage, especially after receiving an expensive new piece of jewelry, whether it be a new necklace or an engagement ring. According to the I.I.I., while 96 percent of homeowners had home insurance as of 2012, only 31 percent of renters had a renters insurance policy. To ensure that your jewelry and other valuable possessions remain properly protected, you should first secure a home or renters insurance policy if you don’t already have one in place, and then take the following precautions:
· After you receive a new piece of jewelry, contact your insurance agent immediately. This will help you determine how much existing coverage you have, and whether additional insurance is necessary.
· Make sure you get and hold on to a copy of the receipt for proof of the item’s value, and have the piece appraised if necessary. Heirlooms and antique jewelry will need to be appraised to determine their dollar value, and your insurance agent may be able to recommend reputable appraisers in your area. Your items should be insured for their current value, so it’s also important to get your jewelry appraised if it was purchased on sale.
· Add any new items you receive to your home inventory, ensuring that it is an up-to-date, accurate reflection of your belongings. Having an updated home inventory will not only help you determine the correct amount of coverage to purchase to fully insure your belongings, but it will also speed up the claims process in the event of a loss. Creating an inventory of all your belongings may seem like a daunting task, but there are free tools that can simply this process for you, like the I.I.I.’s Know Your Stuff® home inventory software. Using this program, you can add images of your new items, save scanned receipts, and access your inventory 24/7. If you are more mobile inclined, you can download the free Know Your Stuff app in the iTunes App Store or from Google Play.
At Hunkins & Eaton, our agents are here to ensure that your valuable possessions remain protected. If you received a new piece of jewelry or other expensive item this Valentine’s Day, contact us at 603-444-3975 or online at www.hunkins-eaton.com to review your coverage to make sure your new gifts are fully insured.
