The One Thing Your Homeowners Insurance Won't Cover
At least not well enough.
Spoiler: It's jewelry.
What's Covered Under Standard Homeowners
It's not the type of jewelry that's the problem. Any of your jewelry should be covered to some extent under your homeowners policy.
The problem is two-fold:
1. Perils Covered
The perils you're covered against are only those specified for the rest of your home and possessions. Covered perils are typically things like fire and theft.
Noticeably absent? All the ways jewelry is most often lost or damaged. Like dropping it down the drain. Or hitting the diamond just right and cracking it. Or literally having no clue where it went - aka mysterious disappearance.
2. Coverage Limit
Standard jewelry coverage on a homeowners policy almost always has a monetary reimbursement limit. Generally in the ballpark of $1,500.
Considering the average cost of an engagement ring is nearing $6,000, there's no way you could replace yours with the small allowance afforded from standard homeowners coverage.
Adding a Jewelry Rider or Floater
Definitely a step up from general jewelry coverage on homeowners. Your coverage limit should increase. It may still not be the full replacement amount, but maybe you're in a financial position to swing the difference, so that's acceptable.
The types of losses covered should broaden as well. Depending on the policy, your jewelry could now be protected against accidental losses, too. (Check for unexplained or mysterious disappearance coverage, though.)
What Specialized Jewelry Insurance Offers
With a specialized jewelry insurance policy, you'll get:
1. Full Replacement Value Coverage - A company that specializes in jewelry understands the jewelry market and will have safeguards in place to help ensure your coverage limit matches what it would actually cost to replace your jewelry in today's market.
2. Protection Against Common Jewelry Perils - Mysterious disappearance is ridiculously common. Make sure whatever coverage you choose protects against those moments when you just can't find your ring.
3. Experts Who Actually Know Jewelry - Homeowners insurance companies have experts in homeowners insurance. Jewelry insurance companies have experts in jewelry insurance; people who can work with the jeweler of your choice to find an exact replacement of same kind and quality for your lost or damaged jewelry.
One last consideration: A jewelry claim on your homeowners policy could increase the premiums for your entire policy - an increase that could stick with you even if you part with the jewelry you submitted a claim on.
All in all, protecting symbolic jewelry like your wedding rings is more nuanced than insuring most other possessions. Make sure you have coverage you'll actually be able to use in the worst case scenario.
If you want to know more about jewelry insurance from Jewelers Mutual, download our free Buyer's Guide to Jewelry Insurance.