State Farm® urges consumers to consider purchasing a personal articles policy (PAP) to cover unexpected jewelry loss.For most consumers, a standard homeowner or rental insurance policy includes coverage for loss to personal property. However, there are deductibles and coverage limits. For example, a standard homeowner’s policy won’t cover an accidental loss such as dropping a ring in the toilet or sink. If you lose the ring, you can lose your entire investment.
For valuable items, such as jewelry, a PAP can provide you with the additional affordable coverage you need. A PAP is a separate policy you take out on valuable items that your home insurance won't adequately cover. Insured jewelry is covered for accidental physical loss or damage. In other words, if your best man loses the wedding ring, it is covered.
When getting personal articles policy coverage, consider these tips:
* Keep your home inventory list updated every time you make a major purchase. Include the receipt, serial number and photograph of the new item as proof of ownership.
* An appraisal with a proper description is required on each jewelry item in excess of $5,000.
* If your jewelry has been appraised, make sure you keep all documentation with the purchase receipt and photos. Should you need to file a claim, this will help with the claims process.
* Consider having jewelry re-appraised every so often to ensure that the policy is providing appropriate coverage. Since 1981, Princess Diana’s ring has seen an increase in value of 733 percent.