Did You Get an Engagement Ring or Other Expensive Piece of Jewelry for Valentine’s Day?

If you receive an engagement ring or other expensive piece of jewelry this Valentine’s Day, who are you going to call to tell about it? Your mother? Your best friend? Maybe you’ll post your good fortune on Facebook? While these may be your first impulses, if you want to protect your sparkling new gift, the most important call will be to your insurance agent or company representative to make sure you have the necessary insurance, according to the Insurance Information Institute (I.I.I.).

Standard homeowners and renters insurance policies include coverage for personal items such as jewelry and other valuables. However, many policies limit the dollar amount for the theft of valuable personal possessions such as jewelry, furs and precious stones to $1,000 to $2,000.

“To properly insure jewelry, consider purchasing additional coverage through a floater or an endorsement,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.

In most cases, this would also be covered you for ‘mysterious disappearance’. This means that if your ring falls off your finger or is lost, you would be financially protected. Floaters and endorsements carry no deductibles and frequently provide the option of having the insurance company replace the item for you.

Floaters and endorsements are available as additions to homeowners and renters insurance policies. Some companies also offer a stand-alone policy to cover jewelry without having to purchase a full homeowners or renters policy.

“While there is no way to insure the sentimental value of jewelry, at least having it properly insured will provide financial protection in the event it is lost or stolen,” noted Salvatore.

To make sure your jewelry is adequately protected, the I.I.I. suggests the following:

■Contact your insurance professional immediately
Let your agent or company representative know that you are now in possession of an expensive piece of jewelry. Find out how much coverage you have and if additional insurance is needed.

■Have the item appraised
Heirlooms and antique jewelry will need to be appraised for their dollar value. Ask your insurer for recommendations regarding a reputable appraiser. It is important that expensive items be appraised properly—if you purchase a floater or endorsement, you will pay a premium based on the appraised value and in the event of a claim, will be compensated for this dollar amount.

■Keep a copy of the store receipt
Forward a copy of the receipt to your insurer so that the company knows the current retail value of the item. Keep a copy for yourself and include it with your home inventory.

■Store valuables in a secure location
Protect your jewelry by storing it in a secure location in your home. If you do not plan to wear the item regularly or are holding it for a child, consider keeping it in a safe deposit box. You may save money on the cost of insuring it, as some companies offer ‘in vault’ coverage. If you want to wear the jewelry for a special occasion, many insurers will offer the option of purchasing additional coverage for the time it is out of the bank. You would, of course, have to notify your insurer ahead of time.

■Update the value of your jewelry
Expensive items can go up or go down in value. Talk to your insurance professional about how to make sure the dollar amount of your floater or endorsement reflects these changes. Prices for floaters and endorsements will vary depending on the type of jewelry, the insurance company you choose, where you live and where the item will be kept.

■Take a picture of the item
Get into the habit of keeping a visual record of all of your personal possessions. This helps to document your loss and speed up the claims process. It is also useful to document antique and unusual pieces of jewelry

■Add the item to your home inventory
Everyone should have an up-to-date inventory of their personal possessions. An inventory can help you purchase the correct amount of insurance and speed up the claims process when there is a loss. The I.I.I. has created free, online software, Know your Stuff® - Home Inventory, to make creating a home inventory easier. You can also add a digital photograph of your new gift and save scanned receipts. Computerizing your inventory makes updating easier and more efficient.


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Insurance Information Institute, 110 William Street, New York, NY 10038, (212) 346-5500

Freezing Pipes - Prevention

To help protect your pipes from freezing, consider the following:

• Insulate all accessible pipes using pipe insulation (this can be found at your local hardware store).
• Keep all exterior entry, exit and overhead doors to unheated spaces closed as much as possible during the winter months.
• Prior to the winter months, ensure that all cracks, holes, and other openings on the exterior walls are sealed tightly with caulk or insulation to prevent cold air from penetrating the wall cavity.
• If any pipes are located adjacent to exterior walls or within base-cabinets or in closets, leave the cabinet/closet doors open or use a fan to increase warm air circulation around the pipes.
• If you have rest rooms, kitchens, or service rooms with water sources located on exterior walls, it is likely that the plumbing for these systems is located inside the exterior walls. Or, if you have piping coming up through the floor over an unheated room or unheated crawlspace under your building, it is likely there is plumbing exposed to freezing weather.
• In areas of severe cold weather, as specified on the map below, pay close attention to local weather reports for notice of extreme weather. When extreme cold weather is predicted, let all faucets drip to prevent freezing of the water inside the pipe and if freezing does occur, to relieve pressure buildup in the pipes between the ice blockage and the faucet. The pressure buildup is the actual cause of bursting pipes.

• Install a water leak detection system, available at your plumbing supply store, which will alert someone to respond in the event water is detected.
• Install a valve that allows you to shut off the water supply during periods when the building may be unoccupied, particularly when colder weather is expected. Be sure to drain your water supply system before leaving the building unoccupied.
• Connect your sprinkler system to a water flow alarm that will alert a responder. In the event of a pipe rupture or a damaged sprinkler head, the responder will shut off the water supply. This will help limit water damage potential.
• If your business is unoccupied for more than 24 hours at a time, you should have a plan in place to inspect the building once a day for freezing pipes during the winter months.
• To check pipes, turn on each water supply faucet individually (both hot and cold) to ensure that there is a steady stream of water present. If the flow of water is slowed, or worse, there is no flow, then it is likely that your pipe has frozen. Identify the blockage (probably the area of most exposure) and use a blow dryer (do NOT use an open flame torch!) to heat the supply line, leaving the faucet open. Continue heating the pipe until there is a steady flow of water.

For More Information Visit: DisasterSafety.org