Investing in Forever? Consider Special Coverage

For many couples starting their lives together, an engagement ring is a major financial investment. In fact, a nationwide survey of brides found that the average amount spent on an engagement ring in 2018 was $7,829.1

The possibility of losing such a sentimental and expensive possession may be hard to consider, but it happens. And many couples might not realize that their homeowners or renters insurance may not provide enough protection to replace a fine piece of jewelry or other expensive item that is lost, damaged, or stolen.


The personal property coverage in standard policies generally covers only certain incidents (damage or accidental loss are typically excluded), and losses for jewelry and certain other expensive items are typically limited to around $1,500.2 Of course, a claim under your standard policy would also be subject to your deductible.

If you have cherished jewelry or other valuable goods in your home, consider purchasing a separate personal property policy or adding a scheduled personal property endorsement or “floater” to your homeowners or renters policy. Unlike standard policies, this type of endorsement typically extends coverage for many potential mishaps including theft, accidental loss or damage, and unexplained disappearance.

So if your diamond engagement ring is lost in the ocean, a floater could help you recover the full replacement value (up to policy limits). Better yet, there is no deductible, or a relatively minimal one.

You can choose to insure a single item (a particular ring) or a class of luxury goods (all jewelry). Some other examples include silverware, computers, cameras, sporting goods, guns, musical instruments, furs, fine art and antiques, coin or stamp collections, and other valuable collectibles.

To obtain a floater, you will need a detailed description or photo(s) of the items and a bill of sale, appraisal, or other documentation of their value.

If the current value of any personal property you own exceeds the coverage offered in your current insurance policies, ask your insurance agent about the costs and benefits of additional coverage for those belongings. You may find it’s a relatively small price to pay for the added protection.