What Is a Jewelry Floater?
Let me explain what a jewelry floater is—it's a type of supplemental insurance you can get to protect your precious jewelry. You often buy it alongside your homeowners or renters insurance. While those policies usually cover some jewelry, a floater expands that coverage, which is essential if you have valuable pieces.
How Jewelry Floaters Work
A jewelry floater acts as an optional addition to your homeowners insurance, safeguarding you from financial loss if your valuable jewelry gets damaged or stolen. Basic homeowners policies do provide some coverage for jewelry, but if you own a significant collection, you'll likely want this extra layer to get a higher payout if something happens. Beyond jewelry, you can get floaters for other valuables, often called personal articles floaters, like fine art, expensive watches, or collectibles such as baseball cards. If you're an investor treating these as alternative assets, or just someone with wealth, adding a floater gives you peace of mind. You'll probably need a formal appraisal of your jewelry's value too—it helps prove what it's worth when you file a claim and avoids disputes with your insurer. Many insurance companies insist on a professional appraisal to set the right premiums based on the item's true value.
Example of a Jewelry Floater
Consider Taylor, who collects high-end jewelry. Their renters insurance covers personal possessions up to a certain limit, but Taylor knows a theft or loss could exceed that quickly. Plus, the rarity of the pieces means the insurer might not grasp their replacement value. So, Taylor gets a jewelry floater, starts with a professional appraisal, and builds it into the policy. This ensures the insurer agrees on the value upfront, and the coverage limit matches the collection's full worth.
Does Homeowners Insurance Cover Jewelry Theft?
Yes, standard homeowners or renters insurance typically covers jewelry theft, but only up to a fixed limit, like $1,500 or $2,000. If your jewelry is worth more, a floater extends that coverage to handle the higher value.
What Does a Jewelry Floater Cover?
A jewelry floater provides broader protection than your homeowners insurance alone. It can cover accidental loss, theft whether you're at home or away, and damage like broken prongs or clasps.
How Much Does a Jewelry Floater Cost?
You can expect a jewelry floater to cost between 1% and 2% of the jewelry's value each year. For instance, if you have a $12,000 diamond necklace, it might run you about $120 annually.
The Bottom Line
In summary, a jewelry floater is extra insurance you add to your homeowners policy to protect your jewelry beyond the basics. It covers theft, loss, or damage, helping you avoid paying out of pocket for repairs or replacements.
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