Avoid Heartache This Valentine's Day by Insuring Your Gifts

With consumers estimated to spend nearly 15 billion dollars on Valentine’s Day gifts this year, it is important that expensive items such as jewelry or electronics are properly insured, according to the South Carolina Insurance News Service.

Standard homeowners and renters insurance policies include coverage for personal items such as jewelry. However, many policies limit the dollar amount of coverage for theft or loss due of valuable personal possessions such as jewelry, furs, and precious stones from $1,000 to $2,000.

"To properly insure jewelry and other expensive items like fine art, musical instruments, and even golf equipment consider purchasing additional coverage through a floater or an endorsement. The cost is quite inexpensive in comparison to the cost of the jewelry," says Allison Dean Love, the South Carolina Insurance News Service executive director. In most cases, you would be covered for "mysterious disappearance" if the ring is lost for any number of reasons. If your ring falls off your finger or is lost, you would be financially protected. With floaters and endorsements, there are no deductibles and frequently you will get the option of having the insurance company replace the item for you, according to Love.

"Despite the recession, love prevails. There is no way to put a dollar value on sentiment," cautions Ms. Love. "It's important to know what you have, what it's worth and to obtain proper insurance coverage."

To make sure your jewelry is adequately protected, the South Carolina Insurance News Service suggests:

Contact your insurance professional immediately
Let your agent or company representative know that you are now in possession of an expensive piece of jewelry or other costly items. Find out how much coverage you have and if additional insurance is needed.

Have the item appraised
Heirlooms and items that were purchased several years ago will need to be appraised for their dollar value. Ask your insurer for recommendations regarding a reputable appraiser. It is important that expensive items are appraised properly. If you purchase a floater or endorsement, you will pay a premium based on this amount. In the event of a claim, you will be compensated for this dollar amount as well.

Keep a copy of the store receipt
You will need to forward a copy of the receipt to your insurer so that the company knows the current retail value of the item. Keep a copy for yourself and include it in your home inventory.

Store valuables in a secure location
Protect your jewelry by storing it in a secure location in your home. If you don’t plan to wear the item regularly or are holding it for a child, consider keeping it in a safe deposit box. You may save money on the cost of insuring it, as some companies offer "in vault" coverage. If you want to wear the jewelry for a special occasion, many insurers will offer the option of purchasing additional coverage for the time it is out of the bank. You would, of course, have to notify your insurer ahead of time.

Take a picture of the item or collection and add the item to your home inventory
Having an up-to-date home inventory of personal possessions helps you purchase the correct amount of insurance and makes the claims process easier if there is a loss. The South Carolina Insurance News Service provides free, downloadable software “Know Your Stuff” on its web page at www.scinsurance.net. You can add a digital photograph of your new gift and save receipts. Computerizing your inventory also makes updating it fast and easy.

Update the value of your jewelry and valuables
Expensive items fluctuate in value over time. Talk to your insurance professional about how to make sure the dollar amount of your floater or endorsement reflects these changes. Prices for floaters and endorsements will vary depending on the type of jewelry, the insurance company you chose, where you live and where the item will be kept.

For more information, link to www.scinsurance.net.