Posts Tagged ‘insurance industry’

It’s Valentine’s Day, and thoughts of people everywhere turn to … jewelry.

 “About one out of every four Americans buys jewelry, spending $2,000 per year on average, and industry experts expect jewelry sales to grow by at least 5% annually through 2025,” says Ross Turner of The Turner Agency, Inc. Those who don’t buy shiny things for Valentine’s Day may prefer other types of valuables, such as electronics, artwork, antiques, wine and furs.

 Whatever the purchase, American consumers should take steps to safeguard and insure their valuables. Homeowners insurance generally covers valuable and precious items such as jewelry, but they usually have limits.

 Typically policies restrict the dollar amount of coverage for individual valuable items ($1,000 is a typical maximum), as well as “sub-limits” that constrain coverage for certain categories of possessions (all the jewelry in the house, for example) to a certain dollar amount (say, $10,000).

 What’s more, most homeowners insurance policies cover “named perils” such as fire, lightning, and windstorm. That will exclude many events that create financial losses. Note, for example, that “my five-year-old dropping my engagement ring in the toilet and flushing” is not a named peril.

 To cover such circumstances—or other situations that the insurance industry has dubbed “mysterious disappearance” —you’ll need a valuable articles personal property endorsement (also called a “floater”) on your homeowners contract. Some homeowners insurance carriers also sell stand-alone valuables policies.

Need to know what’s best to protect your beloved Valentine’s Day gift? Ask your insurance agent. He or she will need a copy of your receipt or bill of sale for jewelry, furs, electronics and other valuable items.

With valuable items, two of the biggest snags that consumers run into at the time of a claim are proving that an item is missing or stolen, and establishing a value for the item.

 Proving the value (termed “proof of loss”) of items is imperative when it’s time to file a claim. Claims are simpler and faster for consumers when they have photos of valuable items and collections; receipts or appraisal reports: and a written inventory.

 Most valuables “floaters” or values policies can provide:

•  All-risks coverage, which covers mysterious disappearance as well as flooding or breakage.
• $0 deductible, which means that the entire replacement cost of that engagement ring is covered.
• Blanket coverage for groups of valuables such as jewelry, crystal, or fine arts.
• “Scheduled” coverage (meaning that items are individually listed) for valuables.
• Coverage for valuables purchased but not yet reported to the insurance agent or carrier.

 Whatever is on your Valentine’s Day wish list or shopping list, protect it. It’ll help you love it even more.

How was your Valentine’s Day?

Of those who didn’t buy shiny things for Valentine’s Day, many purchased electronics, artwork, antiques, wine and furs. All totaled, Valentine’s Day spending equalled approximately $17.6 billion of retail sales, with $4.1 billion of that being spent on jewelry, according to the National Retail Federation’s 2012 Valentine’s Day Consumer Trends report.

Whatever the purchase, be sure to take steps to safeguard and insure your valuables. Homeowners insurance generally covers valuable and precious items such as jewelry, but usually has limits, so it’s important for you to check with us or a Trusted Choice® independent insurance agent to make sure you are covered.

While most homeowner’s insurance policies cover risks such as fire, lightning, and windstorm, they may exclude many events that create financial losses- for example, a claim that is submitted because “my three-year-old dropped my new diamond earrings into the toilet and flushed” may not be covered under a typical policy. To cover these kinds of incidents—or other situations that the insurance industry has dubbed “mysterious disappearance” —you’ll need what’s known as a valuable articles personal property endorsement on your homeowner’s contract. Some homeowner’s insurance carriers also sell stand-alone valuables policies.

Another reason to contact us or your Trusted Choice agent? Typically insurance policies restrict the dollar amount of coverage for individual valuable items in the case of theft ($1,000- $1,500), so you want to make sure that if jewelry is ever stolen, you’re not stuck with coverage that is less than the value of the item.

With valuable items, two of the biggest snags that consumers run into at the time of a claim are proving that an item is missing or stolen and establishing a value for the items. In fact, insurance carriers, when contacted for a claim, sometimes even ask consumers to get a police report for the missing item, even if the loss was not thought to be a theft.

Proving the value of items is very important when it’s time to file a claim. Claims are simpler and faster for consumers when they have photos of valuable items and collections, receipts or appraisal reports, and a written inventory.

Most additions to your homeowners policy or a separate valuables policies can provide:

• Coverage for mysterious disappearance as well as flooding or breakage.
• $0 deductible, which means that the entire replacement cost of that engagement ring is covered.
• Blanket coverage for groups of valuables such as jewelry, crystal, or fine arts.
• “Scheduled” coverage (meaning that items are individually listed) for valuables.
• Coverage for valuables purchased but not yet reported to the insurance agent or carrier.

Need to know what’s best to protect your Valentine’s Day gift? Ask us.