Will my homeowners insurance policy cover lost jewelry?

One of the portions of a homeowner's insurance policy is to cover your personal property such as furniture, appliances, and even your jewelry. The coverage is typically for jewelry that is stolen or destroyed, but lost items may be covered as well. To find out for sure whether your policy covers lost jewelry, you will have to refer to the policy itself or contact your insurance company. In most cases, your jewelry is covered, even if it is lost while away from home.

Lost jewelry may not be covered if it is considered negligence on the part of yourself or whoever was in possession of the item at the time. For instance, if you wore an expensive Rolex knowing the clasp was broken, then losing it would be negligence on your part because you did not take special precautions in view of the known fault.

The personal property portion of your homeowner's policy will only cover your personal items up to a specified percentage of the policy value. In most policies, this is 10% of the policy value, but the actual figure may differ from one insurer to another. The point is, even if your jewelry is covered, it may not be covered up to the full value if you are filing a claim for an expensive item. Some insurance companies may allow you to purchase full replacement cost coverage to guarantee replacement of the lost jewelry rather than a depreciated settlement value.

If you are particularly concerned, or have expensive jewelry to protect, your best move could be to purchase a rider policy that provides specific coverage for listed items. This works well for jewelry, antiques, and even things such as computers and high quality electronics. The idea is to get extra protection without pressing the limits of your home insurance if you are forced to file a major claim.