Does Homeowners Insurance Cover Lost Jewelry?

Your jewelry’s sentimentality might be what’s most important to you, but the monetary value matters, too. After all, you’d probably want to replace pieces that were lost or stolen, and doing so can be very expensive.

Homeowners insurance helps ensure that you can replace lost jewelry, but your standard policy might lack the protection you need for full reimbursement of your loss. Fortunately, additional coverage is available to fill those gaps.

Is jewelry covered under homeowners insurance?

The short answer is yes — a standard HO-3 homeowners insurance policy covers jewelry under specific circumstances, up to certain limits.

Jewelry is included in the personal property coverage provided by your homeowners insurance. Personal property coverage is typically limited to 50% to 70% of the amount for which your home’s structure is insured, according to the Insurance Information Institute. But jewelry and other valuables comprise a special category of personal property that’s subject to sublimits.

Sublimits for jewelry and other valuables have two parts. First is a combined coverage limit for the category of property, such as a $1,500 limit on jewelry. The second part limits coverage on each individual item within that category.

Read More: What Is Personal Property Coverage? A Complete Guide

Does homeowners insurance cover lost jewelry?

Homeowners insurance might cover jewelry lost under certain circumstances. If the personal property portion of your policy provides named-perils coverage, which is typical, you’re only insured against the specific perils named in the policy.^[1]

Say the diamond in your engagement ring falls out or your wedding ring slips off while you’re swimming, and you’re unable to find it. The loss will be covered under a named-perils policy only if “mysterious disappearance” — an unexplained loss — is one of the perils named in the policy.

If, on the other hand, the ring goes missing during a house fire or the destruction of your home from a windstorm, the loss would be covered. Fire and wind are named perils, so losses resulting from either are covered.^[2]

Does homeowners insurance cover damaged jewelry?

Homeowners insurance covers damaged jewelry if the damage results from a named peril. If your dog gets hold of a bracelet and chews it to pieces, the damage won’t be covered because a standard policy doesn’t name pet damage as a peril.

Lightning, on the other hand, is a named peril. If a lightning strike splits a tree in half and causes it to fall through your roof, crushing your jewelry box and mangling your bracelet, your insurance would cover it.

Check Out: 5 Best Home Insurance Companies

Does homeowners insurance cover stolen jewelry?

Theft is a named peril, so your homeowners insurance does cover stolen jewelry, up to the policy sublimits. And it doesn’t matter where you are when the theft happens.

Take a stolen necklace as an example. It’s covered whether thieves steal it from your jewelry box during a home invasion or yank it from your neck while you’re walking down the street.

When is jewelry not covered by homeowners insurance?

Homeowners insurance doesn’t cover jewelry when it’s lost or damaged in an event not named in your insurance policy. Intentional acts are one example. Your insurance won’t cover a necklace you snapped in anger or threw away and later tried to retrieve. Nor will it cover jewelry lost or damaged in an earthquake or flood, both of which are perils that standard coverage excludes.

Losses and damage in excess of policy limits also won’t be covered. If your policy limits are $250 per item and $1,500 combined, and thieves steal 10 pieces of jewelry, each worth $500, your policy will cover just $1,500 — not the total $5,000 for the loss.

Do you need a separate insurance policy for your jewelry?

Whether you need separate insurance for your jewelry depends on the value of the pieces and whether you can — or want to — replace them if they’re damaged or lost.

If separate jewelry insurance makes sense for you, you’ve got a few options for purchasing it:

• Valuable property insurance: Different insurance companies have different names for this endorsement or rider, but they all boil down to the same thing — expanded protection for a specific category of high-value item, including jewelry. In addition to increasing the dollar limit on coverage, valuable property insurance might cover more perils than a standard homeowners policy.

• Floater: A floater is a type of rider that “schedules,” or itemizes, each piece you want insured. Insurers usually require policyholders to have their scheduled items professionally appraised. However, floaters let you insure items for their full value and for any peril, and they typically have no deductible.

How to get additional insurance coverage for your jewelry

It’s always a good idea to talk to your insurance agent before purchasing coverage for jewelry. The agent can recommend the best type of insurance for your specific needs. The process for purchasing jewelry coverage will be similar no matter what kind of insurance you choose.

Follow these four steps:

1. Create a home inventory. A home inventory can be invaluable in the event you need to file a claim. It’ll also ensure that you don’t forget a high-value piece of jewelry that you should include in your new coverage.

2. Review your homeowners insurance policy. Familiarizing yourself with your current coverage and limits will help you determine how much additional coverage you need.

3. Document the value of your jewelry. Gather receipts for new pieces and get pieces you’ve had for a while professionally appraised.

4. Keep the jewelry secure. Store jewelry you plan to wear in a secure location in your home. For pieces you’re saving but don’t wear, consider a safe deposit box.

How to file a claim for lost jewelry

If your jewelry is stolen, lost, or damaged in a covered event, you’ll need to file a claim with your insurance company to get reimbursed for your loss. If the event was a theft, call the police before you file a claim and make a note of each person you speak with.

Next, decide whether you want to file the claim. If the jewelry’s value is lower than the deductible, you won’t receive reimbursement or replacement under your standard policy. However, jewelry covered under an endorsement or floater policy might not be subject to a deductible.

Here’s what to do if filing a claim will reimburse some or all of your loss:

1. Call your insurance company to report the incident. Find out what documentation the company needs to process your claim — purchase receipts, appraisals, and photos of damaged pieces, for example.

2. Follow the insurer’s instructions. Complete the forms provided by the insurer and submit them without delay. Then, submit all the additional documentation the insurer asks for.

3. Meet with the adjuster. If the insurer sends an adjuster to inspect the damage, be ready to meet with them at your home. Have damaged jewelry and all your supporting documents available for the adjuster to review.

4. Wait for your insurer to offer a settlement. If you agree with it, you should receive reimbursement quickly. Otherwise, you’ll have to ask for a review or appeal the decision.

Learn More: How to File a Home Insurance Claim

Homeowners insurance and jewelry coverage FAQs