High Valued Jewelry, Watches, Furs, Guns, etc.
Your spouse has earned it; she put up with you for 12 years! So, for her anniversary, you splurged and bought her a collector's watch. There went a few thousand dollars. And, you got hooked, too: You picked up a cool mariner's or other multifaceted design.
Now, you own two fine watches. They are cool to wear, they make you feel good, they tell time great . . . . and there is just something about a fine watch!
As your insurance agents, we have to say: It sounds absolutely perfect. Except for one detail: Did you get insurance for the watches? Like other jewelry, watches are limited for insurance recovery unless you endorse these items specifically onto your policy.
High-value items are insured as part of the “personal property coverage” on a standard homeowner’s or renter’s policy, but only to certain limits. If the value of an individual item (such as an engagement ring or a watch) exceeds the stated limit, there is no coverage for the difference…unless you purchased a “scheduled personal property” endorsement.
This advice applies not only for watches and other jewelry, but also for antiques, art, high-value rugs, coin collections, firearms, and certain other items noted on your policy.
Jewelry is by far the most common high-value item to be insured. (That’s why we’ll keep the focus on it in this article.) But if you have or buy an expensive item that fits any of the categories above, and you’re wondering whether it is covered on your homeowner’s policy, give us a call. We’re happy to find the adequate protection for your valuables.
Something sparkly for the one you love? Get it insured.
They are awesomely beautiful and distinctive watches. So now they are at your house, in their boxes, in the drawer under the shirts. When you aren't wearing them anyway. In the back corner. Safely tucked away. Just…how safely? What if someone breaks into your home while you are out and they are stolen?
Don't let the giddiness and the glow of obtaining something special (from all of your hard work) with the theft of your valuables, such as these watches. A typical homeowner’s policy only covers jewelry up to $1,500. As soon as these watches are in your possession, it is time to protect them by adding a scheduled jewelry endorsement to your homeowners insurance or renters insurance policy.
One important note: If you are giving a watch to a girlfriend who has been with you and is really hanging in there - and you re not yet married and don't live together, the insurance question can become a little more complicated. As long as the watch or other jewelry is still in your possession, it can be insured on your homeowner’s or renter’s policy. But as soon as you give away, it becomes hers and must be insured on her homeowner’s or renter’s policy. When in doubt, just give our office a call.
It is wise to protect all your expensive jewelry or watches with a jewelry endorsement. Are you going to give her those diamond earrings she’s been dreaming about for Christmas? Is he receiving a Rolex for Father’s Day or his well-earned retirement? Please get them insured.
Coverage is available for less than $18 per $1,000 value. Simply hold on to your receipt, or obtain a professional appraisal to determine the value of the item. Your team at Huggins Dreckman Insurance can help you take care of all the rest.
Inherited a jewelry box? Please follow this advice
You didn’t know Aunt Bertha well. You only saw her on rare occasions like holidays and the family reunion five years ago. But you remember her as a nice lady who loved her afternoon tea, hats with big flowers, and big jewelry to go with them. You liked Aunt Bertha. For your birthday, when you turned 10, she sent you this lovely bracelet with colorful charms that you adored. You returned the favor, sending her a long thank-you note, including a hand-drawn watercolor picture of her favorite flowers, peonies.
She must have been very touched by this, because now, 20 years later, she passed away and left you her entire jewelry box. All of it. You’re not sure what to do with it…most of it seems like big costume jewelry. Nothing too valuable. And not your style, really, either.
3 years later it’s still in your garage, and you’re thinking, it may be time to take it all to the thrift store. No offense, Aunt Bertha…
If you inherited jewelry, do yourself a favor and be sure to get it appraised. Nine times out of ten, people assume that the jewelry they inherited is costume jewelry and of little value. And nine times out of ten, they are wrong.
Our office recommends an appraisal whenever you’re in doubt. With the cost of gold and platinum on the rise over the past years, jewelry appraisals that are five or more years old are out of date.
Any individual piece of jewelry that is valued at more than $1,500 should be insured on a special jewelry endorsement that is added to your homeowner’s or renter’s policy. In insurance terms, we also call this “scheduling” your jewelry.
In order to schedule a piece of jewelry, we ask that you provide a picture of the item, and either a receipt or a professional appraisal. Depending on your insurance company, cost usually runs about $18 per $1,000 value.
Even though we are insurance agents, we want you to know of a non-insurance alternative for high valued jewelry that you may be keeping to pass on to future generations, but don’t plan to use now. Investing in a safe deposit box for items that are seldom used may be less expensive than scheduling. Just make sure to let us know if fashions change and you’ve brought some of those nostalgic pieces home to use regularly.
If you have any questions, please don’t hesitate to give us a call at 562-594-6541. We are here to help!
Protect against mysterious disappearance & loss of stones
Your family heirloom wedding band is precious. And valuable. You love it, and so it’s not tucked away safely at the bank, or even in your jewelry box. It goes with you wherever you go. It may get taken off every so often, when you go swimming, are making meat loaf, or are cleaning the windows…but usually you’re wearing it all of the time.
That means it’s exposed to whatever you are doing, and it’s at risk from all the dangers that come with the world out there: It could get lost or simply slip off your numb finger as you take off your glove on that freezing winter day. Not to mention, the stone could fall out of its setting.
70% of all personal property claims involve jewelry. The good news: Jewelry is usually covered up to $1,500 per item on a standard homeowners insurance or renters insurance policy.
The not-so-good news: Any one piece of jewelry that is a few years old and with any amount of gold is worth at least $1,500. So, you need more coverage. To make matters worse, a typical homeowners insurance policy does not cover losses due to mysterious disappearance or loss of a stone from its setting. We know of claims where the stones have gone down the drain or have been lost in the sand at the beach, never to be seen again.
The even-better solution: Scheduling jewelry items over $1500 in value and adding a “special form” endorsement to your home insurance policy for lower valued items will cover these common losses.
And, if an item is scheduled, no deductible will apply to your loss!
Be sure to insure your watches, diamonds, and jewelry properly so as to be in a position to recover your financial loss if the piece is damaged, destroyed, stolen, or lost. Please give us a call at 562-594-6541 for more information.