Table of Contents
- Is jewelry covered under a standard New Jersey homeowners insurance policy?
- When and how does New Jersey homeowners insurance cover jewelry?
- What will it cost me if New Jersey homeowners insurance doesn’t fully cover my jewelry?
Is jewelry covered under a standard New Jersey homeowners insurance policy?
I just bought my first home in New Jersey, and I’m curious about what all is covered under my insurance. I’m especially worried about my sizable, valuable, jewelry collection that I’ve accumulated over the years. I’d hate to lose any of my jewelry, have it get destroyed or damaged in a disaster, or have it get stolen. It’d be expensive to replace out of pocket. Is jewelry covered under standard homeowners insurance policies?
Well, you’ll be happy to hear that the answer is yes, it is. Homeowners insurance provides coverage for your personal property in general, which includes things like jewelry. That being said, however, for pieces of jewelry that are especially valuable, such as an expensive watch or heirloom necklace, it can be a good idea to purchase extra coverage to insure it for the full replacement value. Special jewelry floaters are also available for pricier items.
When and how does New Jersey homeowners insurance cover jewelry?
As with anything else covered under a standard homeowners insurance policy, many scenarios are considered to be covered perils when it comes to jewelry. Jewelry is treated very similarly to other items that fall under the personal property category of your policy, but one big difference is that it comes with its own special coverage limit. We’ll get more into that later, though. Let’s dive into the most common covered scenarios to begin with.
Standard New Jersey homeowners policies provide coverage for jewelry in the following scenarios:
- Break-ins: If someone breaks into your house and steals a bunch of your property including your jewelry, you’ll be covered.
- Misplacement: If you’re out somewhere and a piece of jewelry falls off and you never see it again, you’ll be covered. This coverage category is also nicknamed “mysterious disappearance.” Basically, if an item is lost and you have no idea what happened to it, you’ve got coverage.
- Damage/destruction: If your jewelry gets damaged, destroyed, or lost due to a covered peril such as a natural disaster, you’ll be covered. Covered natural disasters under standard New Jersey homeowners insurance policies include windstorms, hail, fires, and blizzards.
Homeowners insurance does not protect your property against damage/destruction/loss due to floods, mudslides, or earthquakes. Also, if you’ve got several pieces of extremely valuable jewelry, you’ll likely want to schedule each item on a special jewelry floater, which is a unique type of inland marine insurance. Appraisals for each item are required beforehand. A New Jersey independent insurance agent can then use those appraisals to find you the right coverage.
What will it cost me if New Jersey homeowners insurance doesn’t fully cover my jewelry?
After paying the deductible, you’re also responsible for anything exceeding your homeowners policy’s limit for the jewelry category under your personal property coverage. Limits vary by policy, so make sure to choose one that makes sense for you. If your home is broken into and a lot of your property gets stolen, you might hit your personal property limit quickly — another good reason to consider purchasing additional coverage or special jewelry floaters for valuable pieces.
Standard New Jersey homeowners policies come with a deductible that’s typically 1% of the home’s value. So if your home is worth $300,000, you might have to exceed $3,000 in stolen/damaged/destroyed/lost personal property before the insurance company will start reimbursing you. That can be a lot to pay out of pocket. However, an experienced New Jersey independent insurance agent can set you up with a policy that has a lower deductible.
Article Reviewed by | Paul Martin
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