Homeowners Insurance – How to Get an Adequate Jewelry Rider Coverage?

By Adams Bridges

Jewelry rider is an endorsement insurance policy protects you as a homeowner from being underinsured. Jewelry is theft-prone items and it has a greater sentimental value than its material value. You have to be cautious when you decide your jewelry rider’s coverage amount. And how much do you get reimbursed if you file a claim.

Buying jewelry rider is a must for you to protect your jewelry.

Jewelry is a burglar’s favorite, because it’s expensive and easy to be stolen. Homeowners insurance providers limit the coverage of basic policy to $300-$2500 for expensive items. Hence jewelry is the most possessions need to be insured under a separate policy. Which is an additional policy beside your standard homeowners insurance coverage. Jewelry rider will cost you an additional premium, but you will be reimbursed for your jewelry if it is stolen.

Before you buy a jewelry rider, know how much coverage you need.

Homeowners insurance company calculate your premium based on how much is jewelry that you need to insure worth. For that reason you should hire a professional independent jewelry appraiser who will provide you with a document or a proof of ownership if your jewelry is damaged or stolen. Homeowners insurance companies put their trust in Appraisal made by GIA certified gemologist who will spare you unnecessary hassle if you file a claim.

Insure your jewelry on the basis of replacement cost not actual cash value.

To maximize the benefit of your homeowners insurance policies especially your jewelry rider you must insure your belongings at a replacement cost. That guarantees replacing your valuable gems if they’re stolen in theft with brand new identical items at the same price. On the contrary, having your possessions insured on the basis of actual cash value most likely limit your coverage and makes you underinsured.

Take an inventory of your jewelry to make sure you have enough coverage.

All homeowners insurance providers encourage the policyholders to make documented inventory and to continually update it. The inventory list is considered as reliable proof of ownership beside it’s one of the ingredients to determine your homeowners insurance rate especially if you buy more jewelry and consequently need more insurance coverage. It’s recommended to document your valuable belongings and its purchase receipts on a video tape and keep it in fire-proof safe.

Before you put your signature on the rider policy read the contract fine print. Decide precisely the coverage amount you need by having detailed inventory list.