The best renters insurance policy for jewelry owners is one that adequately protects all of a tenant’s shiny valuables, such as rings, necklaces and watches. But choosing the amount of coverage needed and renters insurance company, can be difficult.
There is no single correct answer, although, there are a number of things tenants who own high-value jewelry need to consider when purchasing renters insurance.
Do I Need More Coverage Than What Renters Insurance Includes?
When buying renters insurance, shoppers choose the amount of personal property coverage they want and jewelry falls under that amount. However, almost all renters insurance policies will only cover up to a specified amount for certain categories, jewelry and furs being one of them.
That means a renter might purchase a renters insurance policy with $25,000 of personal property coverage, while their jewelry and furs are only covered up to $2,000.
For renters who own even a small collection of items that fall under this category, it’s easy to see why this limit might be problematic. Depending on the items and how many someone owns, a little might easily be surpassed by the value of a collection. And jewelry is small and can easily be misplaced or lost in a catastrophe. It also is a prime target for thieves, so renters need to make sure it is adequately covered.
If the value of a renter’s jewelry and furs is below the category limit of their policy, then they don’t need to worry about it not being covered. When the value of a collection of jewelry and furs exceeds the category’s limit within a renters insurance policy, then a renter needs to expand their coverage is some fashion.
Expanding Coverage For Jewelry
Renters whose jewelry and furs are more valuable than the category limit of their insurance policy aren’t without hope. There are two potential solutions, depending on the individual renters collection: They can purchase an endorsement or schedule specific items to be covered.
Renters insurance endorsements (also called riders or options) are like endorsements for any other insurance policy – they raise the claim limit for a specific category. Endorsements are perfect for renters whose collection of jewelry and furs requires a higher limit of coverage, as long as no specific item is more valuable than a specific limit – usually $2,000 or $2,500.
Any single valuable worth more than about $2,000 (depending on the insurance policy) will need to be scheduled. Scheduling a single item, such as a $10,000 ring, is like taking out a small insurance policy for that specific item.
Renters might need to purchase an endorsement to expand their jewelry and furs limit in addition to scheduling items.
Adding an endorsement or scheduling an item will increase the cost of a renters insurance policy. The good news is that renters insurance is relatively inexpensive. The average annual renters insurance premium in the U.S. is$187.
The most important thing is that all of a tenant’s jewelry and furs are covered. How a renter must go about covering them doesn’t really matter and all renters insurance companies offer endorsement and will schedule items. It’s easier to do this with some companies than others.
Increasing A Jewelry Limit When Purchasing A Policy
Scheduling a specific item is not something that can typically be done online, but some insurance companies allow renters to upgrade the jewelry and fur limit.
For example, when gathering a State Farm renters insurance policy online, shoppers can increase the standard jewelry and furs coverage of $1,000 to either $2,500 or $5,000. Doing so also increases the company’s policy limits per jewelry or fur item to $1,500 and $2,500, respectively.
Some insurers also enable renters to easily add additional jewelry protection and items do not have to be individually appraised when the coverage is added. All a policyholder needs in the event of a claim is proof of ownership and valuation documents, such as a receipt or financing for an item. Renters shopping for such a policy can add up to $10,000 of the company’s “Blanket Jewelry Coverage.”
Whichever route you choose always keep your valuables secure and your policy up to date.
The article Protecting Jewelry with Renters Insurance originally appeared on ValuePenguin.