Jewelry is often one of the most valuable belongings in your home and, for this reason, it’s something you may want to consider insuring. Most pieces of jewelry can be fragile, easily lost, and they are among the first items stolen during burglaries. But most people still fail to insure expensive pieces of jewelry with high sentimental values.
Below is some general information to help you understand how much jewelry insurance can cost and the different ways that you can purchase insurance for some of your most precious belongings.
One common way to insure jewelry is on a homeowner’s insurance policy. Usually adding your jewelry to your home insurance will cost you extra. Homeowners insurance rates will vary based on the amount of coverage you choose for your home, the location, age, and condition of your home, and other factors like your marital status and even your credit score.
Most home policies don’t automatically cover your jewelry. You’ll need to ask for an endorsement to your policy to cover your jewelry. And, as jewelry is a high-value item and is often stolen or lost, you’ll see a separate amount of coverage for it on your policy.
The cost of jewelry insurance can vary but typically it’s between 1% - 5% of the total value of your jewelry collection.
The different home insurance coverage options
When it comes to comparing home insurance, there are many different options to choose from. Some of the most common options that you will want to consider when taking out a policy include:
- HO-3 Insurance – This is the most popular type of insurance and, if you have a mortgage, you are often required to have at a minimum this level of coverage.
- HO-5 Insurance – If you are looking for more holistic coverage, then this type of policy provides more extensive coverage than an HO-3 policy.
This type of policy will cover any damage to your home, apart from any exclusions in the policy, which might be events such as floods or earthquakes.
As for the coverage for your belongings, this policy is commonly referred to as a Named Peril policy. On an HO-3 policy, your belongings will only be covered for events listed in your policy. Also, you typically will only be reimbursed for the actual cash value of your belongings rather than the true replacement cost.
HO-5 insurance provides the same amount of protection for your home as an HO-3 policy. But for your belongings, HO-5 is commonly referred to as an Open Peril policy. This means that rather than only covering your belongings for perils that are named in the policy, your belongings will be covered for everything unless a peril is specifically excluded in the policy.
An HO-5 policy will also reimburse you for replacing your belongings if lost or stolen rather than only providing the actual cash value of your property.
The best way to get more information on jewelry insurance is to ask a licensed agent in our office. We can assist you with assessing your insurance needs and provide you with some quotes from several of the top insurance companies.
Get A Quote For Your Jewelry Insurance Today
Our licensed staff is ready to help you get multiple jewelry insurance quotes. Because we’re an independent insurance agent we can shop from multiple insurance companies to help you find the right coverage at the right price.