Does Homeowners Insurance Cover A Diamond Ring?

Most homeowners policies will cover stolen or lost items up to a specific limit (typically only up to $1000 per item) as a part of the standard policy. There is also a relatively low overall limit up to what insurance will cover for all lost and/or stolen items as well. For example, Allstate's typical homeowners policy covers items that are lost or stolen up to $1000 per item. With option J, at an additional cost, you can increase coverage up to $2,000 - $3,000 per item and $25,000 overall. Depending on the replacement value of your ring, your standard homeowners or renters policy may not cover all of the replacement value.

If you don't have scheduled personal property insurance added to your homeowners policy, then it's likely that you won't be covered for any item over $1000. Scheduled personal property coverage should be added to your homeowners or renters insurance if you have any relatively valuable items in your home. A diamond ring worth over $1,000 should definitely be added to a scheduled personal property policy rider.

What types of items should I add to scheduled personal property coverage?

If you have the following types of items in your home, then you should definitely get them covered under a scheduled personal property rider:

For especially fragile items such as vases, glassware, etc., you will need to ask for separate breakage coverage. Broken especially fragile items will not be covered under the optional SPP coverage alone.

What other advantages are there to having a scheduled personal property rider?

SPP riders cover you for more than the typical homeowners policy. Most standard homeowners policies have limits to the types of losses they will cover. For example, fire or theft may be covered but loss or damage is not. Also, you will only be covered up to a relatively low maximum and not the full replacement value of the item. You can also cover valuable personal property that you take with you as well under an enhanced SPP as well as items you store in an outside vault or safety deposit box at a bank or other institution.

What do I need to qualify for scheduled personal property coverage?

You will need to already have homeowners or renters coverage. If you don't currently have homeowners or renters or want to see if other companies can save you more, then shop around for additional quotes for comparison. You will also need receipts and/or verified appraisals from experts knowledgeable about the type of item you want to insure. Ask your agent about the appraisal process.

You can get discounts on your SPP policy rider for the following:

*If you keep your items in an outside vault and you want to remove them for any reason, then you typically must notify your insurance company prior to removing the item. Otherwise, your item will not be covered.

Want to get a quote on homeowners insurance with SPP coverage?

If you would like to see if you can save some money compared to your current homeowners insurance or if you are buying your first home, then we suggest that you compare policies and rates from as many insurance companies as you can prior to buying a policy. We recommend Insureme who allows you to compare several home insurance policies from major highly rated insurers. They are also unique in that they include quotes from dozens of local insurance agents in your area. In many cases, independent agents may be able to give you a better deal for becoming one of their customers. Be sure to mention that you are interested in a scheduled personal property rider.

This should not be considered financial advice which can only be given by a qualified financial professional. We suggest you consult with a qualified financial planner and/or insurance professional who is most qualified to consult with you regarding policy decisions. Many factors are involved in your policy premium some of which may not be mentioned in this article. We are an affiliate of the Bankrate Insurance Network.

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