Does My Homeowners Policy Cover Jewelry?

When buying homeowners insurance you face a long list of choices as to what type of policy best applies to the particular kind of home you have, whether a single-family dwelling, a mobile or manufactured home, a condo, townhouse, etc. You'll also have a long list of options from which to choose within each different homeowners insurance policy. In order to become aware of what types of coverage are available to best fit your own specific needs and how to understand the different perils, exclusions and policy limitations associated with each, it makes sense to spend some time consulting with your local independent insurance agent, who is likely an expert in this area.

Policy Exclusions and Limitations

Homeowners insurance generally covers the repair or replacement of your home for loss from a list of covered perils such as fire, storm damage, civil riots, vandalism, etc., up to a certain dollar amount spelled out in the policy. Your policy will also provide protection against the loss, damage or destruction of covered personal possessions, which includes your furniture, equipment, appliances, clothing and more. Possessions are typically covered to a total amount that's limited to a stated percentage of your total policy coverage amount. This could be 10%, 50% or something in between, depending on your specific policy.

Most policies also place specific loss limits on certain types of items. A policy may, for example, only provide for your jewelry if it becomes damaged or stolen. It may also exclude a claim for jewelry that's accidentally lost, which may be considered negligence.

If you own jewelry that exceeds the value of your policy coverage limits you have the option to obtain an endorsement (or rider) to increase this limit to something more appropriate. This will, naturally, cause your premium to increase. Another option is to have your valuable items "scheduled," which calls for each piece being appraised and then covered for the full amount if destroyed, stolen or lost. There's also no deductible due in a claim for a scheduled item.

Other items typically limited for maximum claim amounts in most homeowners insurance policies include:

• Gold and silver, including silver flatware
• Guns
• Stamps
• Coins
• Furs

As with jewelry, however, these items may be covered for greater amounts by obtaining a rider or by scheduling them. Scheduled items should be reappraised every 3-5 years to update their values.