Valentine’s Day Reminder – Buying New Jewelry?
February 14, 2018
Are you buying your wife a nice piece of jewelry for this Valentine’s Day? Perhaps a nice pair of earrings or a fancy bracelet? February 14th is a day you better not mess up!!! But the real mess up on Valentine’s Day may be not scheduling your newly purchased jewelry on a jewelry rider to your homeowners policy.
The jewelry rider is designed to specifically insure an item for a predetermined amount of money. That amount is generally based off of appraisal value, but for new purchases we can often use the purchase price.
So why should you put that new jewelry on an insurance rider? First off there are limitations due to theft in a homeowners policy ($1,500 on the HO 0003 homeowners form in NC). Plus filing a claim on the homeowners policy carries a steep deductible sometimes, which outweighs the limited coverage on the item in many instances.
The single most important reason you want to insure your jewelry on a jewelry rider is because of “mysterious disappearance.” This is a fancy phrase for “I lost it.” Many of the claims we see on jewelry are lost stones; for example, the setting has become compromised and an individual lost a diamond or other jewel in a ring. There is no theft to claim in this situation, thus the homeowners policy does not trigger. Mysterious disappearance is not covered under a homeowners policy.
Should you insure every single piece of jewelry? Probably not. But when making a special purchase which has an extra zero in the purchase price, we do strongly recommend you consider this as an option and at least contact us to discuss the pricing and details.
Not only should you consider insuring jewelry, but also anything that is rare in nature. Musical instruments, guns, coins, art, or silver are other items to consider scheduling on a rider to your homeowners.
Please call our office at 252.633.1174 (no voicemail) if you have any further questions or you need to get that jewelry added last minute. The only thing worse than forgetting Valentine’s Day is forgetting to properly insure your large purchases!
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