If you’ve recently inherited some priceless jewelry or if your hand is feeling heavier from a new engagement ring (congratulations!), you may be wondering how your new bling is covered by your insurance. 

At Berry Insurance we know that when it comes to valuable items, you’re going to want to make sure they have the best protection possible. Our team of agents is used to helping clients understand their coverage options and how jewelry is replaced in the unfortunate event that they are lost or stolen. 

Keep reading to learn about how your insurance policy covers jewelry, how to increase coverage through scheduling items, and how you would be compensated after a loss. 

Table of contents: 

• Does homeowners insurance cover jewelry? 
• What are scheduled items? 
• How does insurance replace jewelry? 
• How much does it cost to insure jewelry? 

Does homeowners insurance cover jewelry? 

Your standard homeowners, renters, or condo insurance policy includes personal property protection insurance that insures the belongings in your home. So if your property is damaged or stolen, your personal property protection helps to repair or replace the items, subject to your deductible. 

However, some policies may have limitations when it comes to covering expensive valuables like fine art or jewelry, meaning you may not receive full coverage if those precious items are lost or damaged. When it comes to expensive jewelry like engagement rings, wedding rings, or family heirlooms you should consider scheduling them on your policy. 

What are scheduled items? 

Scheduled items offer additional coverage that can be added on to existing policies, guaranteeing greater protection of any valuables than under standard personal property protection. 

Scheduling an item on your policy guarantees that your valuable items like jewelry would be covered fully for a broader range of perils than unscheduled items and would receive repairs, replacement, or reimbursement if they were damaged, lost, or stolen. 

Additionally, scheduled items have no deductible applied to them on your policy, meaning you won’t have to pay out-of-pocket for any claim made for lost or damaged scheduled items. 

However, scheduling items does not include protection from any normal wear and tear that occurs naturally overtime, rust, or any gradual deterioration. So if a diamond becomes offset or falls off your engagement ring entirely, it would not be covered by your insurance. 

How do I schedule jewelry?

After determining what jewelry or valuable items you wish to schedule on your policy, you then need to contact your insurance agent or provider to see what items can be scheduled under your existing policy and how much coverage they’re listed at. 

The insurance agent will ask for the proof of value of the items, likely calculated by an appraiser beforehand if receipts of the items are not available. Specifically with jewelry, you would need to record the important details of the item - such as metal type, gemstone color or cut, and more. These details will be important if the jewelry ever needs to be replaced. 

After receiving the required information and appraisal amount, the agent will then reach out to insurance providers and get those items scheduled individually under your homeowners insurance policy.

How does insurance replace jewelry? 

When scheduling items on your policy, you will likely have an option of how you would want to be compensated in the unfortunate event that your jewelry is lost or damaged. 

Most insurers will require you to insure the scheduled item for what it was appraised for - so for example, lets say your new diamond engagement ring is appraised for $6,000. The ring would need to be insured for $6,000 and that appraisal amount would influence how much you pay to cover it each year. 

However, this is where it gets interesting. 

Since insurers will work with vendors they have strong relationships with to replace lost/damaged jewelry, they will likely be able to replace the piece of jewelry to the original’s specifications for less money. So, if you lose your $6,000 diamond ring in the ocean, then your insurer may be able to provide you with a replacement for $4,500 - which would rightfully make anyone question why they’re insuring/paying for a $6,000 limit. 

It’s actually normal to pay more to protect scheduled items than you would ever get back, but it is not the only option. 

What is agreed value coverage? 

Some insurance providers offer scheduling items with agreed value coverage. This ensures that if you file a claim on a scheduled item, you would instead receive a check of the original appraised value of the item. So, if you lose that $6,000 ring, you’d receive $6,000 back that you can then spend on a replacement. 

While agreed value coverage would cost you more for coverage each year, it would ensure that you are fully compensated for what you are paying to protect - and when it comes to our most valuable items, it is likely worth it. 

According to our team at Berry, agreed value coverage is not offered by every insurance provider and may only cover jewelry - so be sure to speak with your agent to see if this is an option under your current policy. 

How much does it cost to insure jewelry? 

The cost of scheduling jewelry on your homeowners insurance is dependent upon the item itself, its value, and which replacement option you choose. 

The standard cost for jewelry is typically 1.3 - 1.4% of its determined value. 

Since the value of your jewelry must be determined by an appraiser before it can be scheduled on to your policy, it is a good idea to hire appraisers every couple of years, so they can adjust the item’s value based on current trends or depreciation over time. 

Precious protection

When it comes to the things most valuable to us, it only makes sense to want the best protections you can buy. By scheduling items like jewelry on your policy, you are guaranteed to have your valuable items protected if anything were to ever happen to them. 

If you haven’t heard of scheduled items before, you may not be aware of the other optional coverages that could be missing from your homeowners insurance policy. Check out our guide to see what other protections you may want to consider adding: 5 Things that May be Missing from Your Home Insurance Policy.