Importance of Insuring Jewelry
Jewelry is included in personal property coverage but usually only up to a specified dollar amount. Insurance companies tend to cap jewelry coverage at a relatively low limit due to its high value and theft risk. Most personal property insurance policies cover jewelry, but there are key considerations to keep in mind.
Coverage Limits and Options
Your homeowners insurance will cover jewelry lost or destroyed due to covered risks like theft or fire. Coverage limits for insuring jewelry are outlined in your policy, with most renters insurance capping coverage around $1,500. If your jewelry’s value exceeds this limit, you may need to increase your coverage limits or opt for an add-on rider.
Understanding Personal Property
Personal property includes movable belongings like jewelry, electronics, and family heirlooms. Jewelry, being a valuable asset, is considered personal property and can be insured against theft or damage. The distinction between personal and real property is crucial in insurance policies and taxation.