“If you receive a sparkling engagement ring, a stunning piece of art or even took advantage of the end-of-year sales to treat yourself to a new set of golf clubs or fast new bike, it is important to contact your insurance professional to make sure the items are properly insured,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.
Generally speaking, personal possessions are covered under standard homeowners and renters insurance policies. However, there may be a limit on the amount covered for theft. Typically, items such as jewelry, furs, collectibles and precious stones are limited to $1,000 to $2,000.
To properly insure jewelry, consider purchasing additional coverage through a floater. In most cases, a floater also provides coverage for ‘mysterious disappearance,’—for example, if your wedding ring falls off your finger or is lost, you would be financially protected.
Floaters (also known as endorsements) are available as an addition to homeowners and renters insurance policies, carry no deductibles and frequently provide the option of having the insurance company replace the item for you. Prices vary depending on the type of jewelry, the insurance company you choose, where you live and where the item will be kept. In addition to jewelry, floaters are also available for furs, fine art, musical instruments and even sports equipment.
If you receive an expensive present and want to make sure it is adequately protected, the I.I.I. suggests the following: