Helpful Hints from Griff Harris of Griffith E Harris Insurance Services
When you purchase expensive jewelry, you want to make sure your investment is properly protected. Here are some tips for making sure your luxury items are safe and secure.
What kind of insurance should you get if you’re purchasing an engagement ring? Are there different types?
There are a few way to insure your engagement ring. The first is if you have a Homeowners or Renter’s policy, you can schedule the ring onto it with an agreed/appraised value or you can obtain a standalone policy called a Valuable Articles Policy which will provide the same coverage for the ring at the agreed value and often with no deductible applied.
When should you buy it?
You should obtain insurance coverage when you purchase the ring or take possession of it. This is also the time to secure both the purchase receipt and the appraisal.
What is one misconception people have about insurance for engagement rings and why?
Most people think insurance coverage on an engagement ring means it will only be covered for fire loss or theft; this is not true if it is “written” and “scheduled” on a Valuables Articles Policy, you will also have coverage if the ring has been lost, damaged or you lose a stone. This policy form also includes coverage for “Mysterious Disappearance”.
Is there ever an instance where an engagement ring doesn’t need to be insured?
A Standard home insurance policy covers theft of your jewelry, but only up to a $1,000 limit. However in most circumstances we ALWAYS recommend insuring expensive jewelry on a “scheduled” basis on a Valuable Articles Policy.
Appraised Value vs Replacement Value
Appraisal values will sometimes represent a higher limit than the invoice. Though you may purchase at a special discount we recommend you have an appraisal completed so the “Jewelry Item” can be scheduled at the proper amount reflecting the appraised value.
Blanket Jewelry Coverage vs. Scheduled
We always recommend insuring valuable jewelry on a “Scheduled Basis”, providing broader coverage terms for misplaced and mysterious disappearance.
Scheduled Coverage provides broader coverage terms since you provide an appraisal with a description of each item and its currently appraised value. In the event of a loss the insurance company references the description and appraised value when settling the claim.
Blanket Coverageprovides you with an overall limit of jewelry coverage, for example, a $100,000 blanket jewelry policy provides up to $100,000 of coverage of coverage for jewelry, with no descriptions or values assigned to each item. Typically, the policy terms limit the amount of coverage paid for any one item to no more than $10,000.
Talk to an insurance professional about coverage. For more detailed information, contact Griffith E. Harris Insurance Services, LLC.
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