Jewlery & Art Coverage

Answer:

Homeowners insurance does provide coverage for personal property, but this coverage is limited. Under a standard homeowners policy, the coverage for all your personal property is limited to 50 percent of the coverage amount on your home.

Homeowners policies also set specific dollar limits for particular categories of personal property. For some categories (such as jewelry, firearms, and furs), the policy specifies a coverage limit for theft, but not for damage or destruction. The reason is that these items are especially susceptible to theft, and insurance companies want to limit their exposure to these fairly common incidents. Damage or destruction of these items is less common, and insurance companies are willing to cover them up to their actual cash value.

Some standard coverage limits for particular categories of personal property are as follows:

• $200 for money, bank notes, bullion, gold, silver, coins, and metals
• $1,000 for securities, accounts, deeds, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets, and some other related items
• $1,000 for the theft of jewelry, furs, watches, and precious and semi-precious stones
• $2,000 for the theft of firearms
• $2,500 for the theft of silverware, silver-plated ware, goldware, gold-plated ware, and pewterware
• $2,500 for property at the residence used for business purposes
• $250 for property used away from the residence for business purposes

Note that there is not a standard coverage limit for artwork (although your policy may vary). It usually would be included with all your other personal property, and the cumulative coverage would be limited to a maximum of 50 percent of the dwelling coverage amount. Keep in mind, however, that it could be difficult to convince your insurer of the value of your art collection without a professional appraisal.

You have the option of increasing your personal property coverage by purchasing either an endorsement or a floater. You may need an increased jewelry limit, for instance, for covering engagement or wedding rings. Or you might wish to purchase separate coverage for your art collection, because its value is far more than 50 percent of your dwelling.

In order to buy additional personal property coverage, you must be able to verify the cost and condition of the item. Photos or a video can be used to inventory your property; however, you should be sure to keep the inventory away from the premises (i.e., in a safe deposit box). Professional appraisals are needed for certain items, such as jewelry, antiques, art, and camera equipment (beyond a basic camera).