Whether it’s an engagement ring from a partner, a family heirloom passed down through generations, or a necklace bought to mark a personal milestone, jewellery is unique in that it can be both a sentimental treasure and a financial asset.
As with any valuable item of this nature, protecting it is a priority. While regular cleaning, preventative maintenance, and proper storage are one way to do that, insurance is another. But what kind of insurance do you need, exactly?
In this article, you’ll learn that while jewellery is often covered by the insurance policy you have for your home, condo, or rental unit, there are limits and considerations to keep in mind. These factors will determine whether the coverage you already have is enough or if additional coverage in the form of a floater or jewellery insurance would make you feel more comfortable.
Is jewellery covered under home insurance?
Yes, jewellery is typically covered under the contents insurance (or personal belongings coverage) section of your home, condo, or rental insurance policy. However, there are limits to consider.
For starters, personal belongings are usually grouped into categories, each with an assigned coverage limit. Depending on your policy, jewellery may have its own separate limit or be included under a broader personal property coverage limit.
This limit represents the maximum amount your insurer may pay out for items in that category in the event of a successful claim. If the value of your jewellery exceeds this limit, you may want additional coverage in the form of a floater to ensure you’re fully compensated for its appraised value in the event of a covered loss.
It’s also important to be aware of any exclusions. While home insurance typically covers jewellery against risks like theft or fire, policies often exclude:
- Accidental loss or mysterious disappearances
- Damage from normal wear and tear (ex. scratches, missing stones, or prongs wearing down)
- Design flaws or craftsmanship issues
- Loss or damage due to owner negligence (ex. jewellery stolen from an unlocked car)
- Damage caused by pets (ex. jewellery swallowed by a dog)
Should you add jewellery to your home insurance policy?
Yes, you can add a specific piece of jewellery to your home insurance policy – but whether you need to depends on its value and how well your existing coverage protects it.
Home, condo, and tenant insurance policies in Canada typically include jewellery as part of your personal belongings coverage by default. This means you may not need to list individual pieces if your collection falls within your policy’s coverage limit. For instance, if your policy covers jewellery up to $5,000 and your only valuable piece is an engagement ring worth $2,000, your existing coverage may be enough.
However, if you own a larger collection or a single high-value piece that exceeds your policy’s limit, you might want to add a floater to your home insurance policy. For example, if you buy a $10,000 watch, your policy’s jewellery limit won’t be enough to cover it and any other fine jewellery you may have. In this case, adding a floater for the watch and any other high-value pieces can provide the protection you need.
Remember, with a floater, if the listed item is lost, stolen, or damaged in a covered event, you’ll be reimbursed for its full insured value. This way, there is still room to cover the repair or replacement of other items within the same category. While this comes at an additional cost and will increase your premium, the price may be more affordable than you think.
Is it better to insure jewellery separately from home insurance?
Not necessarily. Whether you need separate jewellery insurance depends on how much fine jewellery you own, its total value, and your home insurance policy’s coverage limit for jewellery. If your collection is modest and falls within your policy’s limit, your existing coverage may be enough.
However, if you own multiple high-value pieces or even a single item that is particularly expensive, you may want extra coverage. In that case, you typically have two options: you can add a floater to your home insurance policy, or you can purchase a standalone jewellery insurance from a specialized provider. Many Canadians opt to add a floater because it tends to offer better value compared to standalone jewellery policies, simplifies coverage, and keeps all assets under one policy.
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