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I’ve lost a diamond in my ring – am I covered under my home insurance?

You could’ve sworn your diamond engagement ring was on the bedside table, but when you rushed home to get it it wasn’t there. Now you’ve looked high and low and you still can’t find the ring. Not only have you lost a special piece of jewellery that has a lot of sentimental value but you’ve also lost an expensive item. Now the question is: Will your home insurance cover this loss? The answer is yes, but the extent of coverage will depend on how you insured it.

Your diamond ring is covered but maybe not the full cost.

The good news is that items of value that are lost or damaged are typically covered under your home insurance policy. After paying your deductible, your home insurance will likely cover the replacement of the ring – but only up to your single item limit. This is usually between $1,000 and $2,500. That means if your ring was worth more, you’ll only receive this amount.

The exception is if you insured it with a specialized endorsement known as a floater. This protection is designed for more expensive items like jewellery, artwork, sports equipment and collections to ensure they’re adequately insured.

The key is to make sure you have enough coverage for your most valuable items. That means talking to your independent insurance broker before you have to make a claim about getting extra coverage added to your homeowner policy. This may mean a slight increase in your monthly or annual premiums but it ensures that you’re fully covered for the total loss should something happen to your precious jewellery.

The cost for adding extra insurance coverage for your jewellery is quite nominal typically 1.5% to 2% of the ring’s appraised value. That means on a $5,000 engagement ring you’d pay an extra $75 to $100 per year for this extra protection. However, prices will vary depending on the insurer and what you’re insuring.

Before agreeing to insure high-value jewellery items, most insurance companies will request photos and a current appraisal of the piece (or receipt of purchase). This helps to accurately establish the ring’s value. Keep in mind that jewellery tends to appreciate in value over the years so your insurance company may require an independent appraisal every five years.

Talk to your broker for more information about insuring your jewellery.