Furs, Finery, and Farm Equipment

Inland marine policies have nothing to do with water — well, unless you lose an heirloom diamond while swimming or washing dishes, that is. And rest assured, it happens.

The special policies, which protect valuables such as jewelry, electronics, golf equipment, fine arts, silverware, and coin collections, among other things, cover mysterious disappearances and perils outside the scope of standard homeowner’s insurance, says Texas Farm Bureau Insurance Agent Juancarlo Rendon. They’re often inexpensive, too!

So why don’t more people have them?

“They don’t know about them, No. 1,” says Rendon, of Laredo. “And No. 2, they think they’re covered by their [homeowners] policy.”

Not so.

Know your limits

Jewelry items worth more than $500 — and that’s a collective $500 — aren’t covered in your regular policy unless otherwise specified. That number can go up to $5,000 with a special endorsement, but even then, only basic risks such as fire, natural disasters, and theft apply.

Rendon puts it this way: “If you have a $10,000 ring, and you go to wash your hands and notice one of the diamonds is missing, well, that’s not going to be covered. And that’s the benefit of having it on a stand-alone policy.”

Most inland marine deductibles are almost microscopic compared to that of a homeowners policy. In some cases, he says, an inland marine deductible can be as low as $250.

“Let’s say you have a $300,000 house and a 1 percent [homeowners] deductible, which is going to be $3,000. “Instead of having to take the hit on the first $3,000, you take the hit on the first $250, and we take care of the rest.”

Stamps, baseball cards, and more

Taken altogether, the items covered by a potential inland marine policy read like something from The Great Gatsby: furs, jewels, high-end musical instruments — you name it. Valuable collections apply, too, including stamps and baseball cards.

Furs are handled separately in a homeowners policy as well as inland marine policies, Rendon adds. Farm equipment is another special case, and certain valuables — like that rookie-season Nolan Ryan card, for one — might get their own paperwork. On the whole, though, you should know that many heirlooms and collectibles apply, and they’re generally lumped together under a single policy.

When it comes to cameras, for instance, “Let’s say the kid next to you drops some ice cream on [your camera] and fries the whole deal. Well, that’s something that would be covered.”

Don’t forget about kids’ belongings, too, especially gear such as musical instruments. “Most of the kids in band buy their own instruments,” Rendon points out, “so if it gets lost at a football game, well, guess what? That $600 flute your son or daughter wanted really, really badly is now gone, but mysterious disappearance would be covered [with an inland marine policy].”

Instruments aren’t the only overlooked valuables, he adds. “We don’t think about the fact that we have a $1,000 set of steak knives, for example, but we’re worried about the $600 TV.”

What makes for a mystery?

Dropping a ring down the drain is one thing, but the list of aptly named “mysterious disappearances” is a long one.

“I ran over it,” Rendon says, citing one of many situations clients have encountered. “My housekeeper stole it. I lost it at the ranch.”

Farms and ranches pop up often in inland marine claims, actually. Rendon’s own uncle lost a wedding ring when he hopped out of his truck to open a gate, for example.

Where to begin

Naturally, you’ll start with a call to your Texas Farm Bureau Insurance Agent. The next step is usually to get an appraisal; though if the item in question is less than two years old, you may be able to work with a sales receipt alone. All told, though, you’re always better off visiting a pro to assess value.

“Most people think, ‘Oh, I’m only going to insure what I paid for it,’ but what they paid for it five years ago or seven years ago is not what it’s worth now,” Rendon explains, especially with regard to precious metals such as gold. “It’s worth a whole lot more.”

If you got an unusually smart deal on a snazzy tennis bracelet, for that matter, your appraiser will note its real market value — which could be well above the sales price. Here’s to your good taste.

“We’ve seen some customers get some good deals on jewelry or musical instruments,” Rendon adds, “and [the item] is appraised for much more than they bought it for.”

Rendon’s clients have also seen the sad side of material wealth, however, especially when disaster hits.

“A lot of people put their valuables in a safe, and they don’t think about those,” he says, referring again to jewelry and similar heirlooms. “They only think about the things they wear every day. But unless they have a really nice safe, if there’s a fire, those things could be melted down or damaged.

“It’s not just the stuff you wear every day or the stuff you think is the highest risk; it’s everything. I’ve seen people get their check for [just] $5,000, and they’re like, ‘What am I supposed to do with this?’”

As the old adage goes, better safe than sorry.

Headed for the altar? Be sure your wedding rings, wedding gifts, and any new property are sufficiently covered through your Texas Farm Bureau Insurance policies. Get a complete insurance checklist for this exciting new chapter here.

Tips for a fair jewelry appraisal

Jewelry appraisal may be a bit daunting, but most folks already know whether or not they have a hidden gem, so to speak. Houston jewelry appraiser Jessica Khurana says to always stay curious; but when it comes to getting a loved one’s jewelry reviewed, keep in mind the history and personality of the individual — don’t mistake costume for costly.

Khurana, a graduate of the Gemological Institute of America, cautions against using an appraiser without GIA credentials. When it comes to valuing jewelry for insurance purposes, she says, a professional once-over is vital.

A fair appraisal accounts for factors such as weight and quantity of stones, design, cost of manufacturing, and so on.

“I’ve seen receipts that just have the word ‘ring’ and the price,” Khurana says, “and no details about value. If you ever were to file a police report, there just wouldn’t be enough evidence.”

Take the time to cover your bases with an inland marine policy. You’ll be glad you did.

For all the unpredictable moments in life, keep your finances above water with an umbrella policy.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation.