Homeowners insurance generally won’t cover you if you misplace an item, says Salvatore.
Consider a floater: If you have items worth more than you’re covered for, consider buying an additional policy using a “floater’’ or “rider’’ for their replacement cost, which will also cover lost jewelry. For floaters, insurers typically charge a percentage of an item’s value and don’t levy a deductible.
At State Farm Insurance, covering an item worth $10,000 in New York City would run about $175 per year, says Kip Diggs, a spokesman for State Farm. In a different city or state, it might cost half that, he says.
Insure the items you wear: Many people think they don’t need extra insurance until they get engaged and own a valuable ring, says Salvatore. But she advises insuring any items you wear regularly because wearing them increases the chance of losing them. She also recommends covering anything worth more than $1,000 and anything irreplaceable or of sentimental value.
Appraise everything: Before taking out an additional policy, have your jewelry appraised so you insure it for the right amount.
Keep in mind that the appraisal doesn’t guarantee the value will remain the same, says Roger Sevigny, president of the National Association of Insurance Commissioners. So it’s good to have jewelry appraised every several years.
You can find jewelry appraisers in your area on the American Gem Society’s website, www.americangemsociety.org. You also can get referral from the American Society of Appraisers at www.appraisers.org or take your pieces to a jewelry store you trust, says Celia Santana of Personal Risk Management Solutions, a New York-based insurance and financial advisory firm.
Document and guard your assets: Document everything you have insured and hold onto the receipts for both your jewelry and your appraisals, then make photocopies of all those papers and keep them someplace separate.
As for the valuables themselves, always store jewelry in a safe location when you aren’t wearing it. And, if you have a burglar alarm, change the code frequently.
