Many people choose to include scheduled jewelry on their homeowner\’s insurance policy as a convenient way to cover their jewelry. This is a convenient way however; it may not be the best way. Here are some good reasons not to include jewelry. Losses related to jewelry are high and according to the Department of Justice statistics, 70% of all personal property (contents) theft losses are jewelry. Insurance companies pay out billions of dollars in jewelry losses each year. If a jewelry claim is on a homeowner\’s policy, the impact of the claim can be serious. Jewelry is a magnet for theft and is also prone to \”mysterious disappearance\”. If that lost or stolen jewelry is on a homeowner\’s loss it can have a serious consequences for the homeowner sometimes resulting in a policy receiving a non-renewal notice in a worse case scenario. Another drawback to putting jewelry on the homeowners policy is the the insurance companies usually have restrictions and imitation for jewelry.
A stand-alone jewelry policy called a personal articles floater addresses the jewelry need without impacting the homeowners policy. Also keep in mind the stand-alone policy may offer higher limits than the homeowners policy.
