Jewelry Floater

A jewelry floater is a term used in the insurance industry to describe supplemental insurance covering precious jewelry.

A jewelry floater is an optional addition to a homeowner's insurance policy that protects against financial loss from the damage or theft of valuable jewelry. Though a basic homeowners policy provides some jewelry coverage, if an individual has a sizable and valuable jewelry collection they should add a jewelry floater on top of their basic policy. The jewelry floater will provide a higher dollar amount of coverage for jewelry than a basic homeowner’s insurance policy does.

Some jewelry floaters also offer coverage against more perils than homeowners insurance does. For example, they might cover accidental loss, while a basic homeowners policy would not. Since not everyone owns expensive jewelry that they want to insure, a basic homeowners policy provides limited coverage for jewelry. The minimal jewelry coverage provides homeowners with some jewelry insurance, but homeowners do not pay for unnecessary jewelry coverage. For example, a basic policy might provide $1,000 or $1,500 in jewelry coverage. So if a homeowner purchases a $5,000 engagement ring, they might contact their insurance agent about buying a jewelry floater to ensure that they have protect the ring’s full value. Depending on how much the premium for the jewelry floater is, the individual might decide to self-insure, meaning that they’ll plan to pay for a new ring out of pocket if the existing one is stolen during a burglary, falls off in the ocean during the couple’s honeymoon or is otherwise damaged.

It’s also possible to purchase floaters for other high-value possessions, such as baseball card collections, antique silverware sets, fine art paintings, computers and fur coats. Renters insurance also insures personal possessions such as jewelry; you don’t necessarily need to be a homeowner to insure these items. You can also purchase a jewelry floater for a renters insurance policy.

If you own jewelry that’s valuable enough to merit purchasing a jewelry floater, you will need to present proof to the insurer of the items’ value. An individual should have their jewelry professionally appraised before insuring it. The appraiser will help to ensure the item is properly insured to cover the item’s worth. The insurance company will also need a valid way to determine how much it should pay you in the event you have file a claim, so a professional appraisal is an invaluable tool if you ever need to file a claim to ensure you receive a full reimbursement for your lost or stolen item.