If you are on the receiving end of the National Retail Federation's projected 19 percent who will gift jewelry for Valentine's Day (3.9 billion dollars worth), it's a good idea to review how to protect your true love's financial investment.
According to the Insurance Information Institute, jewelry is one of the most claimed losses in home content related insurance claims. The Bureau of Justice Statistics reports that the largest percentage of completed burglaries involve the theft of personal items, with jewelry (including watches) being among the top items stolen. Although the sentimental value of a special piece of jewelry can never be recovered, there is security in knowing the monetary value is protected.
The Insurance Information Institute has provided four simple steps to ensure adequate protection for sparkling valuables:
1. Contact your insurance professional immediately.
Find out how much coverage you already have and whether you will need additional insurance. Most standard homeowners and renters insurance policies include coverage for personal items such as jewelry, however, many policies limit the dollar amount for the theft of high-value personal items, usually from $1000 to $2000. These policies would cover a loss if the item were destroyed by disasters listed in the policy (fire or hurricane, for example), but if your expensive new gift is lost or stolen, you would need separate insurance to be covered.
2. Obtain a copy of the store receipt.
Forward a copy of the receipt to your agent so that your insurance company know the current retail value of the item. Keep a copy for your records and include it in your home inventory. If the item was purchased on sale, it's a good idea to get a copy of its appraised value.
3. If you receive an heirloom or antique piece of jewelry, have the item appraised.
4. Add the item to your home inventory.
A current inventory of your personal possessions can ensure you have adequate coverage and speed up the claims process if you have a loss. If you don't have a home inventory, there is no better time to start than now. The I.I.I. offers free web-based Know Your Stuff® Home Inventory software and apps, so creating one is easy.
A note to renters:
A 2013 I.I.I. poll found that 96% of homeowners had insurance coverage but only 35% of renters had renters insurance. This insurance provides important financial protection in the event your belongings are lost or stolen.
For any of your insurance questions or needs, contact us at ALINK Insurance Services.
Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148
We can help!