What You Need to Know About Insuring Fine Jewelry

Katie Tu is an insurance specialist at QuoteWizard. QuoteWizard helps consumers compare insurance quotes to find the best policy.

Imagine if your engagement ring was ruined in a house fire. Or the pendant that your great-grandmother cherished was stolen from your bedroom. 

While no one wants to think about it, these tragedies could happen. But would your home insurance cover those losses? In many cases, your existing coverage isn’t adequate enough to compensate you for fine jewelry that’s damaged, destroyed, lost or stolen.

Considering that the average engagement ring cost nearly $5,700 in 2018, purchasing special insurance for your jewelry — as an add-on to your homeowners coverage or as a stand-alone policy — might be worth the investment.

What Does a Standard Homeowners Policy Cover?

A typical homeowners insurance policy covers jewelry, but only up to a point.

Under a standard policy, jewelry is covered for losses caused by any peril that’s included in your policy, such as fire, tornado or theft, according to the Insurance Information Institute.

However, the standard policy limits theft coverage for jewelry, since jewelry is easy to steal, the institute says. The standard policy has a low limit of liability for theft, generally about $1,500. So, in the case of an engagement ring valued at $5,700, your home insurer typically would cover just $1,500 (minus any deductible that your policy has).