How to Protect your jewelry and engagement ring purchases with Insurance
It’s likely that your plans for Valentine’s Day, don’t include a visit to your local McSweeney & Ricci Insurance office, (although we’d love to see you and p.s. we like chocolates). But, if you’re planning on gifting expensive items such as an engagement ring, a diamond bracelet, jeweled earrings or a nice watch, you’ll want to give us a call. Your jewelry or engagement ring purchase may cost several months of your salary, so you’ll want to make sure it’s fully protected by insurance.
The typical homeowners and renters insurance policy covers your jewelry and other possessions from fire, theft, and the other perils listed in your policy, but there’s a limit to how much money a policyholder can be reimbursed after a piece of jewelry is stolen. Many policies limit the coverage for jewelry to only $1,000 or $2,000, which won’t cover the cost of the average engagement ring. “According to the Knot’s 2016 Real Weddings Study, Americans spent an average of $6,163 on engagement rings.” To make sure your jewelry is fully covered, you’ll need to add it to your insurance policy.
There are two choices for keeping your Valentine’s bling protected:
- Your insurance agent can increase the limits on your homeowner’s or renter’s policy until they are high enough to provide coverage for your item, or
- your agent can “schedule” your piece of jewelry by purchasing a “floater” which may also be referred to as a rider or an endorsement.
What is a Personal Articles Floater and what are the advantages?
- The floater may cost more in premium, but offers wider protection. Floaters cover any type of loss including accidental losses, that your homeowners insurance may not cover. For instance, a floater would provide coverage if your beloved accidentally drops her engagement ring down the sink drain or your husband accidentally leaves his expensive watch in the hotel room while traveling.
- Most floater policies offer replacement cost, which means that your insurance coverage will replace your jewelry with an item of like kind and quality if it’s lost, stolen or damaged.
- There is typically no deductible on jewelry claims, so you won’t be out-of-pocket any money if your jewelry is lost or stolen.
- A floater can provide coverage for all your collections. A floater is a good idea for items other than engagement rings as well. For instance, if you are a collector of fine art, sports memorabilia, collectible figurines, wine, or even high ticket electronics, they can all be covered by a floater endorsement.
Keep your receipts for your expensive purchases and provide copies to your insurance agent. We also recommend getting an appraisal, as we often need appraisals on high value jewelry items. As your agent we will need to document what you own and how much it costs. A good way to keep track of your possessions is with a home inventory. An up-to-date home inventory can give you an idea of how much insurance coverage you need, and will also help speed up the claims process if you ever experience a loss.
With three offices located in Marshfield, Cohasset, and Braintree, Massachusetts, McSweeney & Ricci is your trusted local insurance agent. Our partnerships with numerous top-rated insurance companies allows us to provide you with multiple quotes in minutes, ensuring you received the best coverage at the best price and the freedom of choice in your selection. For homeowner’s, auto, life, or business insurance, look to McSweeney & Ricci.
This Valentine’s Day don’t leave to chance, the symbol of your love that cost four, five or even six months of your salary. Contact your McSweeney & Ricci Account Manager and ask about protecting your bling and other expensive items, or request a free quote.