Did you receive some nice and meaningful jewelry this Christmas? Learn how to protect your priceless valuables.

Most homeowner policies provide minimal coverage for jewelry. The reason? Jewelry is high-valued (especially concerning its size), is easily lost or destroyed, and is vulnerable to theft (as well as fraud).

If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage. A few options are available such as buying supplemental insurance attached to your homeowners or tenant's policy or purchasing a separate jewelry policy.

Discussing what is needed and expected from separate coverage is very important. Does the coverage consider jewelry values that increase over time? Does it cover mysterious disappearance (when you know the property is gone, but can't pinpoint when and how the property was lost) and other causes of loss, or just fire and theft? Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.

What about its value over time?

If the jewelry has just been purchased, a store receipt or certificate should establish the insured value. However, as time passes or circumstances change, the insured value must be reevaluated, perhaps by seeking an appraisal (expert opinion).

The retailer where you purchased the jewelry may be the easiest source for documenting the property's value, initially by providing a detailed receipt. Many retailers provide appraisals, some for free. However, it is important to verify the expertise of the service, especially as sometimes, there could be a conflict of interest regarding valuations.

Handling The Limited Coverage Situation

Insurance companies are happy to provide more coverage if they are paid for their trouble. Specifically, limited coverage can be handled using the following methods:

Increased Coverage C Endorsement - this form is only appropriate for properties saddled with limited coverage for theft losses. This form is attached to a basic policy, and it increases the theft insurance limit (i.e. for jewelry from $1,500 to $5,000).

Scheduled Personal Property Endorsement - this form is used for increasing coverage for property that has protection reduced for all sources of loss. The property is removed from the basic policy's limits and is covered exclusively by the endorsement. This form takes more work since each item of property has to be listed and assigned a particular insurance limit.

Inland Marine Property Floater - this method works like the personal property endorsement, except that it is a separate policy. This alternative is more appropriate for persons owning substantial amounts of high-valued property. The coverage must often be purchased from specialized insurers and comes at a high cost. To qualify for such coverage, you may need to meet special circumstances such as having a residential alarm system or making use of vault storage.

Another Advantage Of Special Handling

To arrange coverage under a schedule or an inland marine policy, the property must be properly valued. This often involves appraising the property. It's very helpful to have an expert source establish the current value of jewelry, furs, or other valuable possessions. Such property should be appraised every two or three years since its values often increase over time.

Do you still have questions about the property that needs special handling? Talk to an insurance professional at Williams Insurance about your needs and make sure that you have proper protection.