Is your Wedding Ring Covered by Homeowners Insurance?
How easy is it to lose a ring? Ever put it down for a minute and forget about it? Or had a friend who lost hers due to a burglary? Ever feel like it was about to slip off your finger while doing dishes?
Though we usually think about insuring assets like a home or car, many think of jewelry only after it’s too late or believe their homeowners policy will take care of it all (most won’t).
Additionally, that ring you bought 10 or 15 years ago likely increased in value, meaning it would be more difficult to replace at full value.
Is your jewelry really covered?
In many cases, if you lose a wedding ring or a piece of jewelry, your homeowners policy may only cover up to $5,000, and it could be subject to a 10 percent deductible. For example, if you have a $200,000 overall policy, then the deductible is $2,000.
For that reason alone, if you have a large amount of expensive jewelry or your engagement or wedding rings are worth more than what’s covered, experts recommend that you have a separate policy for each valuable item of jewelry. Asking your insurance agent for a policy review is the best way to find out what’s covered and what’s not.
Another benefit is that it’s covered for a mysterious disappearance—if you can’t remember where you lost it, it can be replaced. If you go through the trauma of having your ring stolen, again, it can be replaced.
In addition, it doesn’t have a deductible, so you receive the ring’s full value. For this separate policy, you send the appraisals for each item but, otherwise, it’s a fairly painless process. In addition, sometimes a safe can even reduce the yearly premium and can also give you further peace of mind.
