With the economy still sputtering and our dollar and world currencies weakening. both gold and silver have seen sizable gains in value over the last few years -- your precious possessions may be due for an insurance upgrade.
A 14-karat-gold necklace that cost $750 to replace five years ago, for example, could be twice that amount.
The standard homeowners policy limits coverage on jewelry and certain other valuables to around $1,000 per category subject to your deductible.
So if your home is burglarized and your jewelry box emptied, you could get shorted. Even with a rider, which extends protection on specific items, you're covered for only the last appraised value. Now is the time to review your valuable items especially your jewelry items. While you're at it, re-evaluate insurance on other valuables, too -- namely, art, antiques, furs, wines, and collectibles.
Get an appraisal
Ordinarily, having valuables appraised every five years is sufficient. But when their prices are particularly volatile, as with jewelry today, have it done every two years.
Typical appraisals starting costs are about $100 to $200 for jewelry collections (depends on size of collection) and $200 to $600 an hour for art, though a reappraisal can cost 40% less than the original, says Aleya Lehmann Bench of the Appraisers Association of America. A good source to finding appraisers is appraisers-assoc.org.
Know the insurance lingo
You can add protection for individual items via a homeowners insurance rider usually called a floater. The premium depends on risk and location, so storing jewelry at the bank, for instance, can cut premiums by up to 60%. A floater for jewelry ranges from 90 cents to $2 per $100 of coverage; for art, 25 cents to $1; for wine, 33 cents to 55 cents.
Ronald Dwyer is an independent insurance agent licensed in Michigan for Home - Auto – Business Insurance. He can be reached at rondwyer@roninsureme.com or 248-390-6345. His website address is www.roninsureme.com , Linkedin address is www.linkedin.com/in/ronalddwyer and Facebook address is www.facebook.com/dwyerinsurance
A 14-karat-gold necklace that cost $750 to replace five years ago, for example, could be twice that amount.
The standard homeowners policy limits coverage on jewelry and certain other valuables to around $1,000 per category subject to your deductible.
So if your home is burglarized and your jewelry box emptied, you could get shorted. Even with a rider, which extends protection on specific items, you're covered for only the last appraised value. Now is the time to review your valuable items especially your jewelry items. While you're at it, re-evaluate insurance on other valuables, too -- namely, art, antiques, furs, wines, and collectibles.
Get an appraisal
Ordinarily, having valuables appraised every five years is sufficient. But when their prices are particularly volatile, as with jewelry today, have it done every two years.
Typical appraisals starting costs are about $100 to $200 for jewelry collections (depends on size of collection) and $200 to $600 an hour for art, though a reappraisal can cost 40% less than the original, says Aleya Lehmann Bench of the Appraisers Association of America. A good source to finding appraisers is appraisers-assoc.org.
Know the insurance lingo
You can add protection for individual items via a homeowners insurance rider usually called a floater. The premium depends on risk and location, so storing jewelry at the bank, for instance, can cut premiums by up to 60%. A floater for jewelry ranges from 90 cents to $2 per $100 of coverage; for art, 25 cents to $1; for wine, 33 cents to 55 cents.
Ronald Dwyer is an independent insurance agent licensed in Michigan for Home - Auto – Business Insurance. He can be reached at rondwyer@roninsureme.com or 248-390-6345. His website address is www.roninsureme.com , Linkedin address is www.linkedin.com/in/ronalddwyer and Facebook address is www.facebook.com/dwyerinsurance
