This is the last thing you want to hear from your significant other. You spent months researching the cut, color and clarity of numerous diamonds and finally found the perfect stone that fit your budget. It took another few weeks to figure out whether you should use a gold or platinum setting to complement the cut. Let's not forget the courage that you had to work up to finally ask the big question! Then one day you come home to find out that the ring vanished into thin air. Not too worry though because you had enough insight to schedule this ring on your insurance policy...right?
Most people think that jewelry is automatically covered under their home, condo or renters insurance policy. This is partially correct. The standard policy will only cover jewelry up to $1,000 per incident and will factor in your deductible. In addition, the automatic coverage is offered on a named peril basis which excludes mysterious disappearance. Now don't get me wrong, some policy holders are in the financial position to replace lost jewelry items without blinking an eye but for those who can't, there is a better way. I suggest scheduling the item on your existing policy or purchasing a separate valuable items policy. This will not only cover the ring up to its appraised value without factoring in the deductible, but it will also cover mysterious disappearance. The coverage is not expensive and it will allow you to sleep better at night knowing that this special item is protected.
For those of you who have already taken the steps to property insure your engagement ring I offer one piece of advice. Consider obtaining a new appraisal every few years to make sure that the item is sufficiently insured. One of my clients had a bad experience with her engagement ring before I was able to take over her account. She scheduled her diamond ring 20 years ago for $30,000 but never obtained an updated appraisal since. Keep in mind that her insurance agent should have had at least three appraisals on file but we will save that argument for another day. One day she lost the ring and had to file a mysterious disappearance claim. The insurance company cut the check, and wouldn't you know it, the day she received the check her handyman found the ring in her garage (let me know if you need a referral for an honest handyman!). She promptly sent the check back to her insurance company and a few weeks later she was referred to my attention from her financial planner. The first thing that I asked her to do regarding the ring was to obtain a new appraisal which came out to $50,000.
In addition to jewelry, you can also insure fine arts, furs, antique furniture, sports collectibles, oriental rugs and even wine. Larger collections typically have to be covered under a separate valuable items policy and can be covered on either a ‘per item' or ‘blanket' basis. If you want to learn more about insuring your valuables, please feel free to give me a call!
Until next time...
Ron Lazarto, Client Advisor, Gulfshore Insurance, 239-435-7159