Does Homeowner's Insurance Cover Jewelry?

Homeowner’s insurance policies provide limited coverage for personal valuables including jewelry. Homeowners with valuable jewelry items should purchase additional coverage to supplement their existing homeowner’s insurance policies. Umbrella coverage offers most homeowners adequate coverage for a nominal monthly premium. Coverage includes replacement costs for misplaced jewelry, theft and damage.

Homeowner’s insurance typically provides half of the insurance coverage as the face value of the total coverage. For instance, homeowners who insure their homes with a $500,000 coverage policy will receive coverage for $250,000 to cover their home and personal belongings. Most homeowner’s insurance coverage policies automatically insure the personal properties within the insured home. However, the insurance coverage for personal articles may not be adequate. Higher-premium insurance coverage typically provides more coverage to personal belongings than lower-premium insurance policies.

Most insurance companies limit the amount of coverage for personal items. The insurance coverage for jewelry is generally limited to a fraction of the total policy coverage amount. Homeowners who have a $500,000 homeowner’s policy may have policy limits of $2,000 for the jewelry portion of their homeowner's coverage.

To obtain adequate coverage for jewelry, many homeowners need additional insurance. Purchased through riders to existing policies, the additional coverage provides jewelry protection for set amounts. Some insurance companies require homeowners to obtain written jewelry appraisals as substantiation for replacement cost, if necessary. Some companies use the term “umbrella” to describe the excess jewelry coverage.

Jewelry coverage through riders or umbrella insurance will cover the replacement cost of the items that are destroyed or lost. Insurance companies also cover theft or larceny. Basic homeowner’s coverage typically covers up to a limited amount for theft, destruction or misplaced property. Purchasing a separate personal liability policy through the existing homeowner’s policy entails a higher premium for both types of insurance.

Purchasing adequate jewelry coverage requires an inventory of all jewelry items the homeowner is insuring. Providing the inventory simplifies the process for submitting insurance claims, if necessary.