With the holidays upon us and all those jewelry advertisements shouting at us day and night, I can’t help thinking about insuring all those new baubles, bangles and beads that will be found under our Chanukah lights and/or in our Christmas stockings this year.
I remember when my daughter became engaged. She, having no interest in jewelry and knowing nothing about diamonds, described it to me as one big circular stone with two smaller circular stones on each side. I, in turn, immediately thought about insurance. When I broached the subject with my son-in-law to be, he assured me that their tenant’s policy would take care of it should anything happen. Well, that actually might be true if the ring was a zircon rather than a diamond (and a beauty at that). While it is true that the typical homeowners/tenants policy does provide coverage for many types of jewelry loss, including theft, the coverage is very limited. As for theft coverage, often there is a cap per item or a blanket limit for all jewelry which is insufficient to cover such an expensive item. Statistics indicate that theft of a diamond ring is more apt to occur than a fire.
Other items, best insured individually, include furs, watches, and collections of various kinds to name just a few. Such items are usually scheduled on a “Floater Policy” with worldwide coverage, for a specifically stated amount determined by an appraisal.
If you are lucky enough to get engaged during this holiday season, congratulations! If not, and you just get a very expensive present, check to make sure that the item is insured for its full value.
Happy Holidays to all!
-Karen Skoler, CPCU