The term jewellery insurance can give you a false sense of security, depending on your needs and your actual insurance policy. Every insurance company provides some level of jewellery insurance in their contents cover and these differ from one insurance company to the next. Therefore, it is important that you understand what you specific policy covers.
Check back to this blog and you will find regular posts that will inform you of different insurance types, issues and solutions.
It is important to note at the start that all insurance companies are different in terms of what their specific insurance policies may cover and the limits of their policy. Therefore the information presented is in general terms.
This post looks at Home & Contents policies that have a jewellery cover component.
Review of Home & Contents Policies that contain Jewellery Cover
Home & Contents Insurance: These policies usually provide a jewellery insurance section and what you are covered for may be determined by the type of policy you have with your insurer. For example, some insurance companies have a contents section that can be basic, mid – level or high level. These may be termed “standard” “Gold” or “Platinum Cover”. Essentially the difference with these policies is the amount you are covered for and the locations where you may be covered.
A basic contents policy might only cover you for $500 per jewellery item and a limit of three items. Therefore, your maximum claim cannot exceed $1,500 regardless of how much jewellery in lost.
A mid – level policy may cover you for $1,500 per item and no more than four items can be claimed. A high – level policy may cover you for $10,000 per item with a limit of four items per claim.
So these policies cover different amount depending on the type of policy you have and the premium you have paid to have that policy cover.
Where does your Home & Content Policy cover you?
The next point with contents insurance is where are you covered? Most policies will only cover a loss that occurs within the home. Therefore, the moment you step outside your door, the jewellery you are wearing or carrying is not covered.
Some of the high level policies may cover your jewellery outside of the home for travel in Australia and in some cases also New Zealand.
The important message is to check with your insurance company the following points;
1. What is the per item limit for your jewellery?
2. What is the total limit for your jewellery?
3. Where is your jewellery covered for loss or theft?
Unfortunately, most home & contents policyholders will have no idea what their jewellery limits are until they make a claim with their insurance company and at that time they are very disappointed with the outcome. Please take the time to contact your insurance company to make sure you know what you are covered for.