Most homeowners policies limit coverage for personal valuables, and you could fall far short of replacement value if your item is lost or stolen. In order to avoid a gap in coverage, you need to add a low-cost insurance rider to protect jewelry and other valuables.
A Basic Homeowners Insurance policy generally covers your possessions for up to 50% of your total coverage. So if you insure your home for $300,000, your home furnishings and personal property would be insured for as much as $150,000.
However most policies place limits on specific kinds of items — promising to pay a maximum of approximately $1,500 to $2,500 for all of your jewelry in the event of damage or theft. Other categories that usually have reimbursement limits include silver flatware, firearms, coins, stamps and furs. (Read the “contents and additional coverage” section of your policy for the details.) Accidental loss is generally not covered if the item is not scheduled.
To raise your coverage limit for your valuables and ensure that you’re protected in case of loss as well as theft, you will need to add a rider or “schedule” the item. (You may need a written appraisal, although a detailed receipt may suffice.) Once you set a value and schedule the item, you’re covered for the full amount if it is lost, stolen or destroyed. Scheduling your jewelry, collectibles and fine art will make the claims experience a lot easier. Plus, there’s no deductible for scheduled items. So if you lose your engagement ring without having it “scheduled”, you’re not out of luck.
Scheduling your jewelry is inexpensive. Average costs are around 85 cents per $100 of coverage for jewelry kept at home and 35 cents per $100 for items kept in a vault. (Actual prices vary by company and geographical location.) Revisit your coverage levels frequently. We recommend that if you do schedule items on your policy, that you periodically get them reappraised to ensure a proper and up to date value. Plus, it’s a great opportunity to have the jeweler check for loose or damaged settings and stones at the time the item is reappraised.
Here's some help on finding an appraiser:
How to Choose a Professional Jewelry Appraiser