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Accessory Accidents: A Guide to Insurance Coverage Limits for Jewelry

How much is your jewelry worth? How much would it cost to replace? As Los Angeles public adjusters, we’ve spent decades assisting local homeowners with insurance claims. In this city of lights and dazzling luxury, we’ve noticed that many homeowners struggle with obtaining adequate insurance coverage for their accessories. To help you select the right policy, we’ve created the following guide to insurance coverage limits for jewelry:

 

What are the insurance coverage limits for jewelry?

As with most questions about insurance coverage, the answer depends on your policy. First, you’ll need to determine which policy will cover your jewelry if it is stolen or damaged. Most homeowners believe that their jewelry will be included in the ‘contents coverage’ portion of their policy. While this is partially true, insurance providers will often specify jewelry coverage limits. This is known as a sublimit.

To understand sublimits, think of your property coverage broken down into categories. For example, let’s imagine that your home is insured for $500,000. That amount represents the total property coverage available. In other words, $500,000 is the maximum amount of money you can receive from your insurance provider, no matter what happens to your home. However, in addition to the $500,000 property coverage limit, your provider might limit how much money you can receive for certain item categories.

Most insurance companies also limit their coverage of items with a high potential for fraud. This includes jewelry, certain electronics, guns, memorabilia, and artwork. Typically, coverage sublimits for jewelry are between $1,500 and $5,000. If your jewelry exceeds the value of your jewelry coverage sublimit, the insurance company will pay you up to your sublimit coverage!

 

Which possessions can be considered jewelry?

In addition to typical jewelry items, such as necklaces, bracelets, earrings, and brooches – you may own other items that count toward your jewelry sublimit. For example, some policies include watches, furs, and precious stones. If you are unsure whether an item would fall under the jewelry category, we suggest that you speak with your insurance agent or broker.

 

How can I choose the right policy?

Most homeowners’ insurance policies offer very limited jewelry coverage. To make sure you’re covered, you’ll need to go over your jewelry and potentially schedule an appraisal. An appraisal is the best way to determine the value of your items. The valuation from the appraiser will also guide you as you purchase special item coverage. Special item coverage is offered for an additional fee and is attached to your homeowners’ policy as a rider or purchased as a separate policy.