With a homeowner’s insurance policy, you may think all your belongings are covered in case of disaster. Unfortunately, this isn’t always true. Homeowner’s insurance doesn’t cover everything, and some valuable items may not be covered, or may not be covered up to their full replacement cost. This is especially true with expensive jewelry, which is where jewelry floater coverage steps in.
A jewelry floater is extra coverage that you can tack onto your homeowner’s insurance policy that protects expensive jewelry that wouldn’t normally be covered under a typical homeowner’s policy. This can include replacing lost or stolen wedding rings, watches and more.
Is a Jewelry Floater Worth It?
There are different instances in which you may need a jewelry floater. If you have a lot of expensive jewelry amounting to thousands of dollars, it’s likely worth insuring them. Most homeowners policies only offer around $1500-$2500 to cover jewelry. Also, homeowners policies may limit coverage to damage after a covered loss or theft. Floater policies often times include coverage for losing the jewelry as well (like taking your wedding band off at the beach and losing it in the sand).
Keep in mind that, just like with other items, you can choose how to insure your jewelry. An insurance company will either reimburse you for the lost ring, in which you’ll receive a check for either cash value or replacement value, or they will replace the jewelry with an identical piece. If you want to replace a treasured jewelry item, the insurance company will need:
- A picture, if possible
Even one of these may work. You don’t have to worry about remembering every single detail for a jeweler to replace the lost item.
How Much Does a Jewelry Floater Cost?
In general, a jewelry floater costs 1%-2% of the total value of the insured jewelry. If your wedding ring was $7000, it would cost around $70 a year to insure. If you aren’t sure about the value of your jewelry, you can visit a professional jeweler to have it appraised.
What Affects the Cost of a Jewelry Floater?
There are ways to raise or lower the cost of your jewelry floater. Things that affect the cost of a jewelry floater include:
- Location. High-crime areas may charge more for insurance.
- Safety precautions. You may qualify for discounts if your home has safety measures such as fire alarms or burglar alarms.
- Storage. Jewelry that is contained in a safe may be cheaper to insure.
- Value of the jewelry.
- Deductibles. You can often find jewelry floater policies without deductibles. This means your premiums may be higher, however.
If you have expensive jewelry, consider insuring it today before disaster strikes.