How Does Jewelry Insurance Pay Out-

HOW DOES
J E W E L R Y
I N S U R A N C E
PAY OUT?

Understanding how your insurance company will pay for
a claim on jewelry is important. Why? It will help you
insure your prized gems properly and save money in the
long run. Also, it will give you an inside look at how pay
out works with property claims. It's information that
might surprise you.
Jewelry claims are paid according to the type of
insurance policy they are covered under. The two basic
policies are homeowners and personal article floaters.
Under a homeowner policy, jewelry claims are typically
paid based on their current market value at the time of
the loss up to a specified limit and less the deductible. So,
for instance, a watch you paid $2,000 for, but depreciates
through the years to $200 will only be worth the $200 at
the time of the claim. If your homeowner's deductible is
also $200, you will end up getting paid nothing. Personal
article floaters pay jewelry claims based on the listed
value for the piece on the policy. They require that you
appraise your jewelry and keep this value up-to-date. So,
for instance, a necklace listed at $2,000 on the floater
policy will only pay out at this amount during a claim
regardless of appreciation or depreciation. So, if this
watch appreciates through the years to $10,000, you will
still only get $2,000 unless you update your floater. It's
important to note that most people who own inexpensive
jewelry insure it all under their homeowner's policy.
Conversely, people who own more expensive jewelry opt
for a personal articles floater.

Be aware that certain losses aren't covered. Obviously,
theft is a covered loss on any jewelry policy, but nuclear
war is not. Since this type of loss is improbable, the lack
of coverage is not important. However, it is worth any
policyholder's time to go over the exclusions listed on
their insurance policy to make sure there is not
something listed that he or she needs covered. Outside of
this factor, the main focus is adequate coverage and,
again, this depends on the value of your jewelry.
Inexpensive jewelry can be adequately covered under a
homeowner's policy. Expensive jewelry can be adequately
covered under a personal articles floater. So take
inventory and make sure you are properly insured.
Article Source:
Ehow
Image Source:
Centrestone Jewellery
Insurance Website