Does Homeowners Insurance Cover Jewelry?

Standard homeowners insurance policies cover personal items, including jewelry. Your policy protects these items under personal property coverage.

The personal property coverage from your homeowners insurance policy covers the cost of replacing or repairing personal items you have insured in case of loss or damage due to a covered peril.

However, if your jewelry is very expensive, your personal property limits may not be enough to cover it. In that case, you'll need to purchase a scheduled personal property endorsement, which is supplemental coverage to fully cover valuable items.

Because jewelry is highly valuable and easily stolen, homeowners insurance will cover jewelry as long as the perils causing damage or loss are included in your policy. The insurance policy will reimburse you for damages if:

Personal property coverage can also have its limitations for jewelry, particularly with covered risks such as theft. It would be best to speak with your insurance provider about the special limitations placed on your jewelry.

Note that you'll need additional protection, especially if your jewelry is of high value. Scheduled personal property coverage is a floater policy that lets you schedule the limits for expensive possessions, like jewelry and watches. Such endorsement policies also cover accidental jewelry loss, which is not covered under your personal property coverage. It also ensures that your jewelry receives the broadest protection.

However, before you insure your jewelry using scheduled property coverage, it must be appraised by a specialist.

While the personal property coverage in your homeowners insurance policy covers jewelry and other valuables, you may not be covered in the following instances:

• Jewelry is lost due to your negligence.
• Jewelry is lost or damaged due to floods.

In general, personal property insurance does not cover lost jewelry. Additionally, homeowners insurance policies offer limited coverage for stolen valuables. Increasing the personal property coverage limit is the cheapest way to increase protection, so you may want to consider it.

Even if your homeowners insurance covers jewelry, you should always take precautions to keep it safe. Installing home security systems and locking expensive or sentimental jewelry in a safe are some options.

Most large and small insurers, like State Farm and Hippo, respectively, offer homeowners insurance. Homeowners insurance costs roughly $175 per month. Homeowners insurance rates vary across insurance providers. MoneyGeek recommends shopping around and comparing quotes from various providers to ensure you get the best bargain.

The amount of personal property you decide to insure will significantly affect the overall cost. Use MoneyGeek's personal property calculator to figure out how much coverage you may need.