That $2,500 Limit on Jewelry: Why Your Fiancée’s Engagement Ring Isn’t Really Covered.
The Most Painful Fine Print in a Homeowners Policy.
After we were burglarized, my fiancée was heartbroken that her $12,000 engagement ring was stolen. I was confident, telling her, “Don’t worry, we have insurance.” I was wrong. I discovered the painful fine print in my homeowners policy: a “sub-limit” that capped the coverage for theft of jewelry at a mere $2,500. I had a half-million-dollar policy, but it only paid a tiny fraction of our most valuable loss. It was a shocking and costly lesson in the limitations of standard coverage.
How to Insure Your Valuables for Their Full, Appraised Value with a “Scheduler.”
The VIP Treatment for Your Most Prized Possessions.
The solution to the low sub-limits is to “schedule” your valuable items. I took my wife’s new ring to a certified appraiser. Then, I gave that appraisal to my insurance agent. For a small additional premium, he added a “Scheduled Personal Property” rider to my policy. This rider specifically lists her ring for its full, appraised value of $15,000. Now, if that specific item is lost, stolen, or damaged, we are guaranteed to be paid the full, agreed-upon value.
The “Mysterious Disappearance” Clause That a Scheduler Adds to Your Policy.
The Magic Coverage That a Standard Policy Lacks.
A standard homeowners policy only covers your belongings for a list of “named perils,” and “I don’t know what happened to it” is not on that list. A scheduled property rider provides “open peril” coverage. This includes the magical protection of “mysterious disappearance.” If my wife’s scheduled ring simply vanishes—if she loses it on the beach or it disappears from her nightstand—the policy will pay for it. This broad, all-risk coverage is a massive and valuable upgrade.
From Fine Art to Firearms: The Items You MUST Schedule Separately.
The “Special Sub-limits” You Need to Know About.
Every standard homeowners policy has a list of special categories of property that have very low, specific theft limits. You must be aware of these. The most common ones are:
- Jewelry, watches, and furs (typically $1,500 – $2,500)
- Firearms (typically $2,500)
- Silverware and goldware (typically $2,500)
- Cash and currency (typically $200)
If you own any items in these categories that exceed these low limits, you absolutely must schedule them separately to be fully protected.
Standard Coverage Has a High Deductible. A Scheduled Item Has a $0 Deductible.
The First-Dollar Coverage You Get with a Rider.
Another huge advantage of scheduling your valuables is that the coverage typically has a $0 deductible. If my unscheduled camera is stolen from my house, I first have to pay my $1,000 homeowners deductible before the insurance pays anything. But if my $5,000 camera is specifically scheduled on a rider, and it gets stolen, the insurance company simply sends me a check for the full $5,000. There is no deductible. It is a true, first-dollar coverage.
“I Lost My Ring on the Beach.” A Tale of Two Claims: One Scheduled, One Not.
A Payout vs. a Denial.
Two friends lost their engagement rings. The first friend’s ring was not scheduled. It was a “mysterious disappearance,” which is not a covered peril on her standard policy. The claim was denied. The second friend had scheduled her ring. Her policy had “open peril” coverage, including mysterious disappearance. She filed a claim, and the insurance company paid her the full, appraised value. Same loss, but a world of difference in the outcome, all because of one simple rider.
The Small Premium to Schedule an Item is Nothing Compared to the Cost of Losing It.
A Tiny Price for a Huge Peace of Mind.
The premium to schedule a valuable item is surprisingly low, often about 1-2% of the item’s value per year. So, to insure a $10,000 ring, you might pay an extra
100−100−
150 a year. It seems like a lot, until you compare it to the alternative: the gut-wrenching, $10,000 loss you would suffer if the unscheduled ring was lost or stolen. That small, predictable premium is a tiny price to pay for the absolute certainty of knowing your most precious belongings are fully protected.
How to Get an Appraisal and Add a Personal Property Rider to Your Policy.
A Simple, Two-Step Process.
Protecting your valuables is easy. Step 1: Take your item (like jewelry, fine art, or a collectible) to a certified appraiser to get a formal, written appraisal of its current value. Step 2: Send a copy of that appraisal to your insurance agent and ask them to add a “Scheduled Personal Property” rider or “floater” to your homeowners or renters policy for that specific item. That’s it. You are now fully covered.
Stop Assuming Your Expensive Things are Covered. They’re Not.
The Most Dangerous Assumption a Homeowner Can Make.
The single biggest and most common mistake people make is assuming their high-value belongings are fully covered by their standard homeowners policy. They are not. The policy is intentionally designed with low sub-limits to exclude these items from full coverage. It is your responsibility to identify your valuables and take the extra, simple step of scheduling them separately. Assuming you are covered is a recipe for a devastating and completely avoidable financial loss.
The VIP Insurance Treatment for Your Most Prized Possessions.
A First-Class Ticket for Your Valuables.
Think of your standard personal property coverage as a coach airline ticket. It gets the job done for your everyday stuff, but it has limitations. A scheduled property rider is a first-class ticket. It gives your most valuable, prized possessions the VIP treatment they deserve: a higher limit, broader “all-risk” coverage, a $0 deductible, and a guaranteed payout. For the items you love the most, don’t settle for the cramped confines of coach. Give them the first-class protection of a scheduler.