Picture coming home to find your wedding ring, your watch and your grandmother's necklace gone. In the episode's opening example they are worth $15,000 together, and the insurance company says it will pay $1,500. Special limits are the reason. Aaron Bollinger of Bollinsure Insurance Services explains how they work and what to do about them before a loss.

This page follows that episode. It is an illustration, not a quote. The limits on your own policy, and the carrier's terms, control.

Personal property is not one number

Personal property coverage is the part of a policy that covers the things inside the home, not the building. In the episode, items that are easy to take, such as jewelry, watches, furs, cash, firearms, silverware and collectibles like sports cards, carry a small cap. That cap is a sublimit: a separate limit that sits under the personal property coverage.

The example in the episode is a policy with $300,000 of personal property coverage that still caps jewelry theft far below the value of a good ring. The same applies to renters policies. The episode says an unscheduled jewelry theft limit is often around $1,500, and it adds that it cannot guarantee that figure for any policy. A higher net worth carrier may remove or raise those caps, but only if you have talked to the company about it.

Theft versus loss

A regular policy covers theft. It does not cover losing a ring at the beach or a stone falling out of a setting. To be covered for lost items you need the item scheduled, or a personal articles floater (PAF), which can cover mysterious disappearance. The episode says scheduling can sometimes be done with the homeowners carrier, but it has to be explicit. A floater is usually a separate policy.

How scheduling works

  • List the item and its value. A recent appraisal from a local jeweler works. The episode says a receipt can also work. An old appraisal does not, because the value has to be current.
  • Check the terms. The episode says scheduled coverage is often worldwide and often has no deductible, and that carriers differ. Markel is the example carrier named for a floater that covers mysterious disappearance.
  • Reappraise. The episode says carriers often ask for a reappraisal every three to five years. If an item is worth less now, the coverage is adjusted, and if you never update it you can end up with less than you expected.

The $12,000 ring example

If a $12,000 ring is stolen and it is unscheduled on a homeowners or renters policy, the episode's example payout is around $1,500. You then have to find the other $10,500 yourself. It is basic math, and it is the reason the episode treats scheduling as pre-planning.

Beyond jewelry

The episode names other things that can outgrow a sublimit: watch collections, sneaker and card collections that have no appraisal, art, collectibles such as Hummel figurines, instruments such as a violin or a piano, and cameras. Art that is in transit is a conversation about a personal articles floater and a marine policy. Several items can often be placed on one floater, and the episode says carriers can give credit for insuring more with them.

Endorsement or standalone policy

Raising the supplement on your homeowners or renters policy is usually the lower-cost route, according to the episode. A standalone collection or floater policy is the broader one. The episode's point is that an endorsement can leave gaps, such as mysterious disappearance, items that are moving between places, or items that cross a state line, which a floater is more likely to address. Ask which situations each option covers before you decide.

The homework

The episode ends with one task. Make a list of anything worth more than a couple thousand dollars, find the receipts or get an appraisal, and send it to your broker. It takes about an hour, and it is the difference between a $1,500 payout and the real value of the item.

See home insurance in California, or request a coverage review for your jewelry and collections. You can also call 562-268-9355.

This guide is general educational information. It is not legal, tax, or coverage advice. Coverage, eligibility, and pricing depend on the carrier, underwriting, and your policy terms. CA License 6013787.

Sources and Further Reading