Do I need jewelry insurance if I have homeowners insurance?
In nearly all cases, yes it makes sense.
Below is a chart that explains why most homeowners insurance policies are not appropriate for covering most jewelry. Especially jewelry valued at over ~$2,000.
Now, it is possible to buy additional coverage for your jewelry through your homeowners insurance policy. This bump-up in coverage is typically called a “rider”. There are many types of riders meant for different situations or assets. An aptly name “jewelry rider” (or something similar, like valuables & collectibles, etc.), however, is a rider meant to improve upon the shortcomings of the base homeowners policy. But in the chart below, you will see, even with a jewelry rider you are most likely better covered through a standalone jewelry policy.
****NOTE: This a summarization of the average policy in each category. Before you sign any policy, make sure you read through it thoroughly and understand all the costs and coverages within.
Comparing standalone jewelry insurance to a traditional homeowners insurance policy, and one with a rider
| Jewelry Insurance | Homeowners Insurance | Homeowners Insurance + Jewelry/Valuables Rider | |
| How much is covered? | Typically the amount your jewelry was appraised for | Capped at ~$1,500-$2,500 on most policies (THIS IS A KEY DIFFERENCE) | Typically the amount your jewelry was appraised for |
| Deductible (How much you’re on the hook for) | Typically $0, but you can increase it to decrease premiums on most policies | Varies widely, but often $500, or greater if your are trying to lower premiums | Possibly |
| Loss Coverage? | Yes | No | Yes |
| Theft Coverage? | Yes | Yes | Yes |
| Damage Coverage? | Yes | No | Sometimes, but rarely as thorough as standalone |
| Disappearance Coverage? | Yes | No | Yes |
| Global/Travel Coverage? | Yes | Yes | Yes |
| Claim impact on Homeowners Premium? | No, this policy is completely separate so a claim on this policy DOES NOT increase homeowners premium | Likely (THIS IS A KEY DIFFERENCE) | Likely (THIS IS A KEY DIFFERENCE) |
Understanding the key differences between jewelry and homeowners insurances
Hopefully the comparison chart, at the very least, explains why you should never rely on your base homeowners policy to cover your jewelry. Homeowners in general is woefully underpowered in its coverage of jewelry . This is because homeowner insurers view jewelry as a different asset/risk class than your house and everything else in it. They don’t want jewelry lumped in with the other assets they are on the hook for covering. Their position is that jewelry, being so small and high dollar, makes it extremely easy to lose or get stolen. More so than most any other items in your home.
Therefore, they want to make sure to insure jewelry separately from the home. They do that by requiring a supplementary jewelry rider be tacked on to your policy. But herein lies another key issue — it’s still technically part of your homeowners policy.
Why a homeowners with jewelry rider is still usually inferior to a standalone policy
Even though your jewelry/valuables rider provides you beefed up jewelry coverage, it’s still ultimately part of your base homeowners policy. In this way, if you ever have to file a claim for your jewelry, this may increase the premiums on your whole underlying homeowner’s policy. Definitely a bummer. On top of that, there are still some damage types that riders may not cover, that jewelry insurance typically does.
If insurers view jewelry as a different risk class, so should you! Insure your jewelry through a standalone policy that is completely separate from a homeowners policy. Insure your home, and the standard assets within it through your homeowners insurance. And insure your gorgeous and valuable jewelry, through jewelry insurance.
So your next question might be, “who sells jewelry insurance?” You can check out this blog post called “Who sells jewelry insurance? A list of standalone jewelry insurers” to learn more.
If you’d like our “Jewelry Insurance Buyers Guide”, please email: brian@treasureprotect.com
Do I need jewelry insurance if I have homeowners insurance?
The short answer – Yes!