All of your belongings, including jewelry and other valuables, are covered under the personal property coverage section of your homeowners insurance. Your personal property is covered for losses caused by specific perils listed in your policy. Some common covered perils include house fires, windstorms, theft, and vandalism.
Since jewelry and other high-value possessions are a common target for thieves, insurers have a limit to how much they’ll pay out for jewelry theft. Also known as a special limit of liability, or sublimit, this is the maximum amount your insurer will reimburse you for a loss.
In a standard home insurance policy, jewelry payouts are usually capped at around $1,500 for theft losses. However, you can add a scheduled personal property endorsement to your policy to extend coverage past those sublimits.
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When does homeowners insurance cover jewelry?
Standard homeowners insurance covers your personal belongings — including jewelry — from covered perils in your policy. If your jewelry is damaged due to the following perils, homeowners insurance may help pay to repair or replace it.
Fire or smoke damage
Certain types of water damage, like a burst pipe
Weather-related damage, like a windstorm
Vandalism
Theft (most policies have a $1,500 sublimit for stolen jewelry)
Here's an example.
Say your necklace is destroyed in a fire. You can file a claim with your insurance company to be reimbursed for the loss up to the personal property coverage limit in your policy. This limit is typically around 50% of your home’s insured value, or dwelling coverage amount.
However, there are special limits of liability — or sublimits — that are applied to jewelry and other certain expensive valuables if they're stolen. Sublimits are the maximum amount an insurance company will pay you out for a covered loss.
What’s a sublimit in insurance?
A sublimit is the maximum amount an insurance company will pay for a specific type of loss. For example, your insurance policy may have a $1,500 per item sublimit for stolen jewelry, which means the company would pay no more than $1,500 to replace your stolen engagement ring, no matter how much you originally paid for it.
Does homeowners insurance cover lost jewelry?
No, standard homeowners insurance doesn’t cover jewelry or any other personal belongings if they disappear out of the blue or are dropped down the drain.
If you’re anxious about leaving your bling at the beach or in the gym shower, consider adding scheduled personal property coverage to your policy. Not only does this endorsement increase your coverage sublimits, it also covers "mysterious disappearance."
Does ring insurance cover a lost ring?
Rings would be covered under a stand-alone jewelry insurance policy that may cover mysterious disappearance. Depending on the insurer, if you lose your ring, you may be reimbursed up to a percentage of the ring’s appraised value.
How is jewelry covered by homeowners insurance?
Homeowners insurance will help pay to repair your damaged jewelry up to your policy’s coverage limit. But there will be special limits of liability (or sublimits) for jewelry that is stolen. Sublimits can come both in the form of per-item and blanket limits.
Here's how it works.
Per-item jewelry sublimit: The maximum you’ll be paid out for a single piece of stolen jewelry, so if your per-item is $1,000, that's the most you'll be reimbursed.
Blanket jewelry sublimit: The maximum you’ll be paid out for all of your jewelry in the event of a theft loss. If your blanket limit is $1,500, that's the most you'll be reimbursed if your entire jewelry collection is stolen.
Keep in mind that you’ll also need to pay your deductible before your insurance company will reimburse you for a claim. That means if $1,500 worth of jewelry was taken from your home and you have a $500 deductible, you’ll need to pay $500 out of pocket before your insurer will reimburse you for the remaining $1,000.
3 ways to increase your policy’s jewelry coverage
If you own an expensive piece of jewelry or a high-value jewelry collection, consider additional coverage to ensure you’re fully protected in the event that something bad happens. Here are a few ways you can do that:
1. See if you can raise the sublimits in your policy
Some homeowners insurance companies will let you simply raise the special limits of liability for items with reimbursement limits — including jewelry, furs, electronics, collectibles, and more.
Depending on the company, you may be able to raise the limits for individual categories of items (referred to as blanket coverage) or select a product tier that raises the coverage limits across every category.
For example, if your standard policy limit for jewelry is $500/$1,500, that means you’re covered for $500 per item and $1,500 for all of your jewelry. If your engagement ring was stolen you would get a maximum of $500, but if your house burned down and all of your jewelry was destroyed you would get a maximum of $1,500.
If these limits aren’t enough, your company may let you increase it to $2,000/$5,000 or $2,000/$10,000.
2. Check for coverage endorsements like scheduled property coverage
Most homeowners insurance companies also let you itemize or “schedule” expensive valuables by adding a scheduled personal property or personal articles endorsement to your policy for an additional premium. You should first get your jewelry appraised so you know how much coverage you need.
While it depends on the company, these endorsements typically let you raise the coverage limits on certain items to $10,000 and cover all types of loss, including mysterious disappearance if you misplace your jewelry or accidentally drop it down the drain.
3. Consider jewelry insurance
If you don’t have homeowners or renters insurance, you can also look into standalone jewelry insurance. Like a scheduled personal property endorsement, jewelry insurance covers jewelry against more instances of loss than a standard policy. You also don’t need to pay a deductible on a jewelry insurance claim.
Most major home and auto insurance companies also offer jewelry insurance. Progressive, for example, offers jewelry coverage that costs anywhere from 1% to 2% of the appraised value of your jewelry annually.
How to file a claim for lost or stolen jewelry
If your jewelry is stolen, you should first contact the police and file a police report. You’ll need a copy of the police report when filing a claim with your insurance company. If your jewelry is damaged by a covered event, you should gather as much proof as possible, like photos and videos of the source of damage. Once you’re through with that, contact your insurer.
Depending on what type of coverage you have, you may need to pay a deductible when filing a claim for damaged jewelry. Be prepared to provide your insurance company with as much information as possible, including receipts or an appraisal showing how much the jewelry is worth.
If the claim is approved, your insurer will reimburse you up to your coverage limit.
How can I protect my jewelry at home?
Accidents can happen to anyone, but there are steps you can take at home to protect your jewelry from theft or damage.
Store it in a fireproof safe. This will help prevent your expensive jewelry and heirlooms from being destroyed in the event of a fire, but it can also help prevent damage from other perils like theft and windstorms.
Take precautions and plan ahead. Install drain covers in your sinks and bathtubs, don’t wear jewelry while sleeping, and have secure places to store jewelry when you’re not wearing it, like a jewelry box or fireproof safe, to keep it away from small children or pets.
Leave it at home. If you’re going to the beach or a public pool, you might be better off leaving your jewelry at home to prevent theft or damage from sand or chlorine. Many athletes and outdoor enthusiasts also leave their expensive jewelry at home and wear silicone rings or other cheap substitutions instead while they’re hiking, biking, or swimming.
Frequently asked questions
Does homeowners insurance cover lost items?
A basic homeowners insurance policy won’t cover items that were lost or misplaced out of nowhere. But you can add scheduled personal property coverage to your policy to cover losses related to “mysterious disappearance.”
How much jewelry does homeowners insurance cover?
Homeowners insurance covers jewelry if it’s damaged by a covered peril — up to your policy's personal property coverage limit, which is typically 50% of your dwelling coverage limit. However, reimbursements for jewelry that’s stolen are usually capped at $1,500.
When does homeowners insurance not cover jewelry?
A base homeowners insurance policy won’t cover jewelry if it’s damaged in a flood or earthquake. It also won’t cover jewelry if it’s damaged from wear and tear over time, or if you misplace or lose it out of the blue.
