Valentine’s Day is approaching, which means jewelry is on the minds of many women (and some men). The average cost of an engagement ring in 2013 was $5,200. This is about the equivalent of a 65-inch LCD flatscreen TV. Do you have insurance to cover your belongings? What all does that insurance cover? Protect your investments.
We need you to take initiative to weigh your personal options. If you have a lot of stuff, and you care about the financial value of your stuff, take inventory and formulate a plan.
Consider, for example, Helzberg Diamond’s Lifetime Care Policy. Their plan offers free repairs with the cost of the plan, but does not cover loss, theft or Acts of God (a natural disaster or other event for which no one can be held responsible). The plan requires checkups every six months and the item cannot be serviced by any store other than Helzberg Diamonds. The cost of the plan is based on price of item—a few hundred dollars for that engagement ring. While this may be an excellent care plan for someone who has time and effort to maintain their possessions, this is not insurance. Some of us don’t even go to the doctor regularly to take care of ourselves – will we truly have a ring serviced every six months?
- Basic Home Insurance
Obtaining personal belonging coverage under your homeowners insurance is less demanding. The only upkeep required is to make sure your policy is updated, and to continue your normal coverage process. Basic home insurance covers your home and personal property from damage caused by things like fire, wind, explosions, vehicles, theft, vandalism and a slew of other occurrences.
Unlike a jewelry store care policy, homeowners insurance does cover loss, theft and some Acts of God.
- Beyond Basic Home Insurance
TYPE
|
COST
|
PAY
|
DETAILS
|
Replacement Cost Coverage
|
Higher premium
|
Higher pay
|
Payout would cover what it costs to buy the item again at new value.
|
Actual Cash Value Coverage
|
Lower premium
|
Lower pay
|
Payout would be the depreciated value of the item.
|
Scheduled Personal Property
|
Higher premium
|
Highest pay
|
Each item is added separately. There may be a $1,000 limit per piece of jewelry. If the engagement ring was appraised at $5,200, this would cover that specific ring at a higher amount.
|
- Don’t Own Your Home?
If you don’t own your home, don’t worry! Renters Insurance also covers personal belongings. To read more about renters insurance, click here.
Melinda Warren
Jones Insurance & Associates Contributor
Jones Insurance & Associates Contributor
Resources
