Equifax

Finance Blog

Insuring Jewelry and Other Valuables

Written by Linda Rey on June 24, 2010 in Insurance  |   3 comments

Got really nice stuff? Some of your special possessions, jewelry and other valuables covered under your homeowner policy may be severely underinsured, or even completely uninsured. How can you insure jewelry and other valuables? Consider adding a personal articles floater (PAF) to your insurance policies….

Insurance for jewelry and other valuablesGot really nice stuff? Some of your special possessions, jewelry and other valuables covered under your homeowner policy may be severely underinsured, or even completely uninsured.

How can you insure jewelry and other valuables? Consider adding a personal articles floater (PAF) to your insurance policies.

A personal articles floater is, depending on the carrier, either a separate insurance policy or a supplemental rider added to your homeowner policy. A personal articles floater protects against loss, such as theft, and/or damage as a result of an accident to valuable personal effects.

Your current homeowners insurance policy may cover certain items such as jewelry, electronics, and other valuables, however, the amount of coverage is very limited. Depending on the item, the coverage may be anywhere from $500 to $2,500 and may include a deductible. Check your policy for exact limits.

What should be covered under a personal articles floater?

If you own any of the following, you may want to ask your insurance company about whether they are protected under your current homeowners insurance policy or if you need a personal articles floater:

  • Jewelry
  • Artwork including paintings, statues, rugs, items of historical relevance, etc.
  • Furs
  • Cameras & video equipment
  • Personal computers & electronics
  • Musical instruments
  • Sporting equipment
  • Stamps & Coin collection
  • China, crystal & silverware

Why use a personal articles floater?

An item’s value is not the only consideration when determining whether to buy a personal articles floater policy. The type of peril to protect against should be considered, whether a stone falls out of your engagement or wedding ring or your computer is damaged in a flooded basement. These are damages typically covered under a personal articles floater policy versus a homeowner’s policy.

Depending on where you buy your policy, you can either itemize your valuable items on a separate personal articles floater policy or list your items on a blanket coverage. Insurance carriers have different requirements depending on the item(s) and respective value(s).

If you have appraisals for your valuables, the agent will be able to write a policy with items listed and covered on an agreed value based on the appraisal. Having an appraisal on a piece of artwork means that if you were to file a claim, you would be reimbursed for the appraised value.

If you don’t have appraisals but have some sort of proof of purchase, such as a receipt, the agent would be able to include the total of all items on a blanket coverage. However, the coverage is based on replacement cost or actual cash value versus agreed value. So you may not be covered for the full amount of what you paid for the actual lost piece.

Regarding “pair and set” coverage, which would be used for jewelry including earrings or an engagement ring and matching wedding band, the carrier will reimburse you for the full cost of the pair or set as long as you surrender the existing pieces you have in your possession to the carrier. In other words, if the policy reimburses you for the loss of one earring and you have to buy a pair to replace them, you have to surrender the other earring as part of the claim.

How to buy a personal articles floater

Follow these steps to make sure you’re buying the proper policy for insuring your jewelry and other valuables:

  1. List your valuables. If you have a collection of valuable items you would like to insure, provide a list of these items to your insurance agent. The list should include a description of each item and their appraised or purchased value. An appraisal is typically acceptable if it was done within the past 3 to 5 years. (But be sure to keep your appraisals updated if you’re considering switching policies.)
  2. Check your policy provisions for newly acquired property. What happens if you buy a new piece of artwork or jewelry after the policy is in place? Make sure you understand what you have to do to get it covered under your policy.
  3. Is there a deductible? Ask your agent if the personal articles floater has a deductible and if you can adjust the size of the deductible to minimize the premium cost.
  4. Keep photos or video of your valuable items in addition to appraisals and proof of purchase. You’ll need these in case you file a claim, so be sure you keep them in a safe deposit box or scan them and keep several electronic copies in different locations.
  5. Consider installing an alarm system in your home. Increased home security should translate into a discount on the premium.
  6. Can you store your jewelry and other valuables off-site? If the items can be placed in a bank safety deposit box, this will also qualify for a significant savings on the policy premium.

Remember, not everything you own needs to be under a personal articles floater policy. Just the really good stuff.

—-
Linda Rey is a licensed insurance agent at Rey Insurance with a broad spectrum of expertise in life, accident, health, property and casualty insurance as well as retirement planning and college funding strategies.
Follow Linda on Twitter.

Read More.

Flood Insurance: What to do Before, During and After a Flood

3 comments

  1. tom987789 says:

    . Its comments came as it said the amount lent in new home loans rose by 7% in May from the previous month to £11.3bn. Although that was up 10% from a year ago, the level of new lending this year has been low by historical standards.
    ————————-tom
    Real Estate Website

  2. eliana says:

    good blog


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Insurance Archive

Stay Informed Sign up for our FREE Equifax email Newsletter