Does homeowners insurance cover lost jewelry like wedding ring?

No, the standard homeowners insurance will not mostly cover jewelry, particularly expensive jewelry.

On paper, the homeowners insurance has a certain provision for personal property coverage and will provide coverage for your wedding ring. However, when it comes to claiming for the loss of such an expensive item, this coverage is not substantial and may not be able to cover the entire cost of the wedding ring.

Generally, your standard homeowners insurance will provide coverage for personal property up to the amounts of $1,000 or $2,000 per item subject to a maximum limit for all items. Aside from this limited amount, the deductible will also kick in, further decreasing the amount you stand to get from the insurance company. Also, the claim is paid based on the appraised value of the ring and may be subject to depreciation or wear and tear.

For instance, you have a policy that provides $1,000 per item as part of your personal possessions coverage, with a $500 deductible. Your wedding ring is worth $10,000 and it was stolen. The insurance company will pay only up to $1,000. That means you will only get $500 from your insurance company for a $10,000 ring.

You need to get a jewelry floater that outlines and covers the specific pieces of jewelry that you have and want to protect. This is for all your expensive personal property such as jewelry, furs and musical instruments, that exceed the limits of your policy for personal possession coverage.

The insurance company will first make an appraisal of your expensive possessions before they will issue the floater coverage. Some insurance companies actually have a certified gemologist on their payroll to help appraise jewelry.

Of course, you will have to pay extra premiums for this extra coverage. It is also important to regularly update the appraisal value of your jewelry. If your jewelry increases its value over the years and you lose it, you will only be paid up to the amount of the latest appraised value you filed with the insurance company.

Another area to consider is that some insurance companies will not provide insurance protection for theft, or they will limit the amount of their exposure to losses due to theft. Other risks that are not covered include nuclear war, riots and acts of war.

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