Whether it’s a ring given in an engagement by a loved one, a family heirloom passed down through generations, or one purchased to mark a significant achievement, jewelry holds a unique place in our hearts. It’s not just a valuable financial asset but a sentimental treasure that carries the weight of our most cherished memories.
As with any expensive product of this kind, safeguarding it is essential. While frequent cleaning, preventative maintenance, and adequate storage are one way this can be done, insurance is another. However, what type of insurance do you desire, exactly?
In this article, you’ll gain a comprehensive understanding of how your existing home, condo, or rental insurance policy protects your jewelry. By knowing the caps and considerations, you can make informed decisions about whether additional protection, such as a floater or jewelry insurance, is necessary for your peace of mind.
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Jewellery Protected Under Home Insurance
Your jewelry is automatically protected under the contents insurance or private possessions protection part of your condo, home, or rental insurance policy. This should provide you with a sense of security, knowing that your valuables are covered. However, it’s essential to consider the caps that come with this protection.
For beginners, private possessions are often merged into classes, each with a nominated protection cap. Based on your policy, jewelry may have its separate cap or be covered under a broader private property protection cap.
This cap represents the highest sum your insurer may reimburse for items in that class in the case of a successful claim. If the worth of your jewelry surpasses this cap, you may desire extra protection in the method of a floater to make sure you are entirely paid for its appraised worth in the case of a protected loss.
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It is also crucial to be aware of any exemptions. While home insurance typically protects jewelry against threats such as theft or fire, guidelines usually exempt:
- Accidental loss or disappearing mysteriously
- Harm from normal wear and tear such as scratches, missing gems
- Design mistakes or craftsmanship problems
- Loss or harm because of owner negligence
- Damage triggered by pets, such as jewelry swallowed by a pet
Adding Jewellery To Your Home Insurance Policy
You can include a particular piece of jewelry in your home insurance policy; however, whether you require it depends on its value and how well your existing coverage protects it.
Home, rental, and condo insurance policies in Canada typically include jewelry as part of your personal possessions coverage by default. This implies you may not be required to mention personal pieces if your collection falls within your policy’s protection cap. For example, if your policy protects jewelry valued at approximately $5,000 and your only invaluable item is an engagement ring worth $2,000, your existing coverage may be sufficient.
If you own a larger collection or a single high-value piece that exceeds your policy’s cap, you may want to consider adding a ‘floater’ to your home insurance policy. A floater is an additional policy that provides extra coverage for specific high-value items, such as a $10,000 wristwatch, that exceed your policy’s jewelry cap.
Keep in mind that with a floater, if the stated item is lost, stolen, or damaged in a covered incident, you will be paid for its full insured value. With this, there is still space to protect the repair or replacement of other products within the same classification. While this comes at an extra expense and will elevate your dividend, the cost may be more inexpensive than you assume.
