What Is a Jewelry Floater?
A jewelry floater is a specialized type of insurance designed to safeguard valuable jewelry items. It is often acquired in addition to standard insurance policies like homeowners or renters insurance. While such policies offer some coverage for jewelry, jewelry floaters are tailored to provide extended protection, particularly for high-value items.
Key Takeaways
- Jewelry floaters offer supplementary protection for valuable jewelry pieces.
- These additional insurance options cater to various high-value personal possessions.
- Obtaining a jewelry floater might require a professional appraisal to establish the item’s value.
How Jewelry Floaters Work
Jewelry floaters serve as an optional supplement to homeowners insurance, shielding against financial losses stemming from theft or damage to valuable jewelry. While basic homeowners policies include some jewelry coverage, individuals with substantial or valuable collections often opt for jewelry floaters to enhance their protection. Should the jewelry be stolen, lost, or damaged, a jewelry floater offers higher coverage limits than what a standard home insurance plan would provide.
Aside from jewelry coverage, floaters are also common for other valuable assets, known as personal articles floaters (PAFs). These can include fine art, luxury watches, and collectibles like sports memorabilia. Some investors even consider these assets as alternative investments in their portfolios. For these individuals, and affluent individuals in general, investing in floaters can offer peace of mind for protecting their valuable assets.
Alongside purchasing jewelry floaters, policyholders often seek formal appraisals for their jewelry to ascertain its value. This appraisal serves as proof of value during any potential insurance claims, reducing the likelihood of disputes with insurers.
Insurers may require a professional appraisal as part of the due diligence process in obtaining a jewelry floater policy. The assessment helps the insurer set appropriate premiums based on the item’s value.
Example of a Jewelry Floater
Consider Taylor, a high-end jewelry collector. While covered under a rental insurance policy, Taylor recognizes that their valuable collection could surpass the policy’s coverage limit in case of theft or destruction. Concerned about the insurance company’s understanding of the collection’s value, Taylor decides to secure a jewelry floater. By obtaining a professional appraisal for their jewelry, Taylor ensures the insurance policy accurately reflects the collection’s worth, providing comprehensive coverage.
Does Homeowners Insurance Cover Jewelry Theft?
Yes, homeowners or renters insurance typically covers jewelry theft up to a specified limit, like $1,500 or $2,000. In comparison, a jewelry floater expands coverage for higher-valued jewelry items beyond what standard insurance limits.
What Does a Jewelry Floater Cover?
Jewelry floaters provide broader protection for jewelry damage compared to standard homeowners insurance. Coverages may include:
- Accidental loss
- Theft, both at home and away
- Damage such as broken prongs or clasps
How Much Does a Jewelry Floater Cost?
Jewelry floaters typically range from 1% to 2% of the jewelry’s value annually. For instance, a $12,000 diamond necklace could incur a $120 yearly cost for a jewelry floater.
The Bottom Line
A jewelry floater is a supplemental insurance worth considering to safeguard your precious jewelry collection beyond standard home insurance coverage. By investing in a jewelry floater, you ensure protection against theft, loss, or damage, alleviating potential out-of-pocket expenses for repair or replacement.