Should I Get Extra Insurance For My Valuables?

Valuable pearls, diamonds and gold jewelry

Your diamond wedding ring; your grandmother’s onyx necklace; an original Andy Warhol print; your great-uncle’s collection of rare stamps. 

What do all these things have in common? Easy – they’re valuable, both in terms of money and sentimentality. To help protect them, you may want to consider extra insurance coverage. 

Check Your Current Policy

As a homeowner or renter, you probably (and should!) already have a homeowners or renters insurance policy, which should offer you financial protection over your dwelling and possessions if they’re damaged or stolen. 

These policies are important, but they can be limited when it comes to high-ticket items like a wedding ring, according to Investopedia writer Stefanie O’Connell.

For example, if your ring costs more than what the insurance policy would give you, additional insurance might be worth the price. O’Connell advises getting an appraisal that abides by the insurance company’s rules to determine the actual value of the item before you start shopping for an extra policy. 

The bracelet handed down through generations believed to feature flawless emeralds could just be a stellar piece of costume jewelry — still beautiful and special, just not extra-insurance-worthy. Or the amount your current policy earmarks for jewelry replacement could be enough to cover the cost of your sentimental band.

Related: Five Factors That Influence Your Car Insurance Rates >>

Exploring Insurance Riders and Endorsements

The coverage offered by an insurance rider or endorsement could be the extra coverage you need to protect your valuables. The best part is they can complement your current plan. 

According to The Balance writer Mila Araujo, if your home boasts fine art, silverware, rugs, priceless jewelry, furs or antiques, a rider could be a shrewd investment.

“A rider or endorsement is like a mini insurance policy added to your current homeowners insurance policy, and it will give added protection to certain items that may be excluded or have low limits on your homeowners insurance policy,” explains Araujo.  

High-value home insurance is another option if you’re struggling to find a rider, endorsement or traditional policy to fit your needs or to cover the multitude of high-ticket items you want to protect. 

Although insurance endorsements and riders offer more coverage than a traditional homeowners or renters insurance policy, they still have limits.

“There are high-end insurance policies that will have higher special limits and fewer exclusions, as well as better claims settlement options, such as ‘no obligation to replace’ policies,” Araujo said.

Related: Avoid These 6 Retirement Planning Mistakes >>

Weighing the Cost of Extra Insurance

Deciding to invest in extra insurance to protect your possessions should be made thoughtfully after a serious conversation with a reputable insurance agent or two. 

Start with your current agent for a quote and branch out to different insurance companies if necessary. By vetting your current policy limits and rules, researching policy options and the value of your items, and understanding the cost of replacing them, you can determine if investing in extra insurance is right for you.

Discover the value of the items you’d be heartbroken to lose to figure out your insurance needs – you never know when you might need to make a claim.

Protect What Matters to You

Insuring your most valuable possessions is a great step toward protecting your financial future. As you plan ahead, have you thought about reaching other financial goals – like saving for retirement or to fund your child’s education?

Our free financial calculators can help you check your current net worth, see what it would take to save $1 million, investigate a CD laddering strategy and more. Try them out today.

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Published by Minster Bank

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