A Guide to Insuring Your Jewelry in Myrtle Beach
April 4, 2024, by Brad Davis, CIC
Jewelry is beautiful and often carries a value beyond just the price tag. But it is susceptible to loss, theft, or damage. Since most Home Insurance policies limit the coverage for jewelry, it may be very important for you to protect and adequately insure your jewelry. I will attempt to explore the steps to insure your jewelry in Myrtle Beach, helping to provide peace of mind when safeguarding your cherished possessions.
Assess Your Jewelry
Before seeking insurance, take inventory of your jewelry collections. Document each piece's description, including is value, purchase receipts, certificates of authenticity, and any appraisals. These records will help you evaluate if you need to purchase additional insurance, will likely be needed to obtain additional coverage, and make a claim easier if there is a loss.
Understand Your Homeowner's or Renter's Insurance
Review your existing homeowner's insurance policy. As I try to say in all (or most) blogs - READ YOUR POLICY. While these policies may provide coverage for personal belongings, including jewelry, there are often limitations regarding the coverage amount and types of perils covered.
Many Home Insurance policies (the vast majority of the ones I have seen) limit the amount covered to $1,500 for loss of theft. Here is a common way it is worded - "$1,500 for loss of theft of jewelry, watches, furs, precious and semiprecious stones." This was taken from the ISO form HO 00 03 10 00 (HO3 form and year 2000). *Not all Home Insurance policies use this form, and they likely have endorsements that change the coverage.
Most Home Insurance policies have endorsements available to increase the limit from $1,500 to 5,000 or 10,000, but usually still with a sub-limit of $1,500 per item.
In addition, there is typically a part of the Home Insurance policy that applies to Loss To A Pair Or Set that may read as "In case of loss to a pair or set we may elect to: 1. Repair or replace any part to restore the pair or set to its value before the loss; or 2. Pay the difference between actual cash value of the property before and after the loss."
How to Get Myrtle Beach Jewelry Insurance
There are two main ways to get better coverage on your jewelry. Both ways are able to provide higher limits and more broad coverage than a typical Homeowner's Insurance policy.
- Add (schedule) your jewelry individually to your Home Insurance policy. This entails listing each item, with its description and value to your existing policy via an endorsement - commonly called a rider.
- Purchase a separate stand-alone policy, known as a Personal Articles Floater (PAF). This acts about the same way, where you list each item separately.
Pros and cons to these two options
- The premiums for both are usually in the $1.00 to $1.50 per 100 range. Meaning $5,000 of coverage may run from $50 (low end) to $75 (high end) for a year.
- Both ways typically apply a lower deductible than the standard deductible on your home policy. $100 or $500 deductibles are common, sometimes even no deductible.
- Probably the biggest pro for both is that you know how much coverage you have for the item(s), as it is listed right on the policy. *Coverage is up to the limit - explained a little more below.
- We see more of our clients that add the coverage to their current Home Insurance policy. If the insurance is escrowed/impounded with their mortgage they like that it is paid together. This way is a little easier.
- Some people make the case that if you have a separate policy (PAF) and you have a claim, it will not be a claim on your Home Insurance. This is a valid thought.
*This does not take into account market availability. Depending on your location, claims history, value of jewelry, etc., your choices may be limited. This is when a good insurance agent can help to find options for you.
A couple side notes:
Talk to your insurance agent about your options. For example, it may best fit you to increase the limit (from 1,500 to 5,000) on your Home Insurance policy to cover a few smaller pieces, and then schedule the larger pieces.
Again, guidelines vary, but insurance companies are hesitant to insure a large amount of jewelry without other coverage. For example, some carriers will only offer a PAF (especially for larger values) if you bundle another policy with them. Also, it will be difficult to insure a large value of jewelry on a small Home Insurance policy. An example here is, a carrier could refuse to insure say $100,000 worth of jewelry on a HO4 (Renter's Policy) when the HO4 only has $25,000 value of contents.
What Will You Need to Get Jewelry Insurance in Myrtle Beach
As mentioned above, you should have a detailed inventory of your jewelry. Pictures of each item is a good idea as well. This should serve you well in the case of a loss or claim on a small piece. Here is what you may (probably) need to insure your larger pieces of jewelry.
Most insurance policies will require a recent appraisal or bill of sale for each item of $5,000 value or higher, and most consider recent as within 3 years. The bill of sale (receipt) or appraisal should have a detailed description of the item(s) with a value and picture of the item(s). For example, a description of a diamond should include the 4 C's - color, clarity, cut, and carat weight.
*Requirements vary between companies - some have more stringent rules. Your insurance agent should have the guidelines for each company they represent.
A recent picture is also often required on larger (more expensive) items. I have a rule in this office that a staff member has to view and photo any item that is to be scheduled.
Side note: When getting an appraisal consider asking the appraiser to give you an insurance valuation, not the inflated price that is often shown on the price tag. If you have a loss and the insurance company can get you the same piece for less than you paid for it (or than it was appraised for) they can do that. I have seen that more than not; the insurance company does get it for less. *Don't underinsure, but don't pay for coverage you don't need!
What to do Once You Have Obtained Jewelry Insurance
- READ YOUR POLICY to be familiar with the terms and conditions. Know what your deductible is and how it applies, any limitations or exclusions, or additional requirements. Ensure that the policy aligns with your expectations and provides adequate protection for your jewelry.
- Secure your jewelry. Just because it is insured, does not mean you are haphazard with it. Going through a claim is still an inconvenience.
• Consider getting and using a safe in your home or even with a bank.
• Consider installing a monitored alarm system for your home.
• Keep your jewelry items safe and secure at all times. *The most common jewelry claim I see is theft from a hotel room or cruise ship!
- Update your inventory list and coverage regularly. As the value of your jewelry may fluctuate over time due to market trends or changes in appraisal values, regularly review and update your insurance coverage accordingly. Inform your insurer of any significant changes to your jewelry collection to ensure continued protection at the appropriate coverage levels.
Side note: Securing your jewelry in a safe or safety deposit box will help prevent loss or theft. Make sure to tell your insurance agent if you are storing your jewelry this way as it may also help to lower the cost of coverage.
Conclusion
I hope with this information you are better suited to insuring your jewelry in Myrtle Beach. Take the time to properly inventory and insure your precious jewelry to confidently know they are safeguarded against unforeseen circumstances. Sometimes jewelry is more of an heirloom and has an unreplaceable sentimental value. If lost, it may be unbearable, but at least with the proper insurance coverage you can be made whole monetarily.
If there is anything that I did not address or you have questions about, please respond to this blog or feel free to give us a call.
Disclaimer: This is only meant to be a general overview of jewelry insurance. Different insurance agencies and companies have their own guidelines and prices. READ YOUR POLICY and discuss coverage and options with your agent.
Care to see what we can do for your Jewelry Insurance? Please visit ThinkDavisInsurance.com or call (843) 213-0000.
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