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Personal Article Insurance (Covering Jewelry, Antiques, and Collections)

By January 11, 2021March 25th, 2021Personal Insurance
Personal Article Insurance

Now that the holidays are behind us, are you getting ready to put away your new treasures? 

Maybe Santa was good to you this year and brought you a lovely new designer watch. 

Maybe Santa added a new antique to your collection. 

Maybe Santa left an autographed piece of sports memorabilia under your tree.

Before you put away those treasures, let me ask you one question: 

Do you have a Personal Articles Insurance Policy in place for your most valuable possessions? 

Many people don’t know that you can get extra insurance coverage for your jewelry, firearms, antiques, coin collections – really anything that you would want to be replaced if stolen, lost, or damaged. 

A Personal Article Policy will replace your most valuable possessions if something happens to them.

Once I wrote one of these policies for a client to cover a beautiful set of diamond earrings. When one earring got lost, the policy kicked in and replaced both earrings. My client was so grateful she had taken the time and spent the money to cover her beautiful jewelry.

Maybe you have some valuables you would like to insure. To help you understand the ins and outs of a Personal Article Insurance Policy, I have put together this short guide for you. In this guide, we will talk about:

  1. What is a Personal Article Policy?
  2. What valuables can be covered on a Personal Article Policy?
  3. When does Personal Article Insurance Policy kick in?
  4. Doesn’t my Homeowner Policy cover my valuables?
  5. How much will a Personal Article Policy cost?
  6. What information do I need to have my valuables insured?

What is a Personal Article Policy?

If you have a possession or multiple possessions, that would be difficult or costly to replace you should consider purchasing a Personal Article insurance policy. 

A Personal Article policy is a stand-alone policy. It covers your special valuables to their full value. Because of this, the insurance company will agree to cover the article or articles up to a certain dollar amount.

To practically explain this, let’s look at a couple of examples.

First, let’s say you have a $20,000 engagement ring. To insure the ring, you would negotiate that amount with the insurance company. Then, if something should happen to the ring, you would receive the total value of the ring – $20,000.

Or, let’s imagine you have a firearms collection. (In a rural county like Greene County, PA, this isn’t too hard to imagine.) Let’s say that your guns are valued at $12,000. You can negotiate a policy that will cover all $12,000. So, if your guns are lost in a house fire, you will have $12,000 to cover the replacement of your firearms.

What valuables can be covered on a Personal Article Policy?

You can purchase a Personal Article Policy for just about anything that you own of value. This might include:

  • Jewelry
  • Firearms
  • Camera Equipment
  • Antiques
  • Stamp collections
  • Coin collections
  • Sports memorabilia
  • Sporting equipment
  • Fine art

And this list is not exhaustive. I have even written a Personal Article policy for a wheelchair. If you have something of value that you want to be insured, you can contact your insurance agent to help you put something in place.

You should note, however, that there are some valuables that insurance companies will not insure on a Personal Article Policy. Handbags, for instance, lose value too quickly. Insurance companies, therefore, will not insure them.

When does a Personal Article insurance policy kick in?

Personal Article policies will cover the items listed on the policy under the following circumstances:

  1. Loss due to a fire or other listed peril 

Your valuable(s) will be covered if they are lost due to the perils listed on your policy. The perils covered may differ from policy to policy. Because of this, you will want to make sure that your valuables are covered if you are at greater risk for some perils. For instance, if you live in a flood zone, you should make sure that flooding is listed as a peril on your policy. 

     2. Theft

If your valuables are lost due to theft, your Personal Article policy will cover the replacement of those valuables. If they are stolen from your home, your vehicle, your workplace, etc., you will have coverage.

     3. Mysterious disappearance

If your valuable disappears and you don’t know where you lost it or where it “got off to,” Personal Article insurance will still cover the cost to replace the article. This means if you are taking a dip in the Atlantic Ocean on your vacation and your wedding rings are lost in the waves, your policy will cover their replacement.

     4. Repairs and damage

Repairing damage done to your valuable can be included as part of your Personal Article coverage. It can also replace any article that you still possess but was damaged.

Doesn’t my Homeowner Policy cover my valuables?

Your Homeowner Policy does indeed cover your valuables. The caveat with this is that your Homeowner Policy generally covers your possessions up to at least 50% of your dwelling coverage amount.  For example, if you have a $200,000 dwelling limit, your possessions will be covered up to $100,000. 

What this means is that if you lose your possessions in a house fire or other peril, you will receive a total of $100,000 to replace them. You will have to replace your furniture, your electronics, your clothing, and the rest of your valuables with that money.

With a Personal Article policy in place, you have the peace of mind knowing that those valuable articles will be replaced and that your Homeowner Insurance money can be applied to your other possessions.

Another benefit is that if one of your valuables is lost or stolen, you won’t have to file a Homeowner Insurance claim. Generally, if you have to file two or more Homeowner Insurance claims, you can expect your policy to be canceled or, at the very least, to experience a significant increase in your premium amounts. 

With Personal Article insurance, you won’t need to file a claim on your Homeowner Insurance policy.

How much will a Personal Article policy cost?

While it’s really difficult to give a hard and fast amount that you can expect to pay for a policy, depending on the item or collection, your policy could be anywhere from $75 a year to $1,300 a year. 

Recently, a policy that I wrote for a $5,000 ring had a premium of $100 for the year. I have seen rings of similar value have a premium of up to $150 a year. 

Many insurance companies will also bundle your Personal Article Policies with your Homeowner Insurance and/or Auto Insurance. By bundling your policies, you receive a discount on your insurance premiums.

What information do I need to provide to have my valuables insured?

If you want to purchase a Personal Article Policy, you will need to gather this information before applying for the policy. 

  1. Appraisals

For items like jewelry, antiques, or coin collections, you will need your valuables to be professionally appraised. The insurance company will use these appraisals to settle on the replacement value of the items.

     2. A list of each item you want to be insured

Each item on your policy will need to be listed individually. For instance, if you have several rings, a few watches, and a few necklaces that you will have insured, you will need to list each one. If you want to have your antiques insured, you will need to list each item.

     3. Any available serial numbers

Some valuables come with a serial number. This is especially true for firearm collections. Before applying for a Personal Article Policy, you should gather all available serial numbers from your valuables. These numbers will need to be listed on your policy.

I want coverage for my valuables. What should I do next?

If you would like to purchase coverage for your valuable possessions, a quick call to your insurance agent will get you started on your way to a quote for a Personal Article Policy. 

Before placing the call, however, it would be most helpful if you have all the information about those items you want to have insured ready to provide to your agent. This will speed up the process of getting a quote.

At Baily Insurance Agency, we can price your Personal Article Policy with several different insurance companies. By doing so, we provide excellent coverage to our clients at excellent prices.  

Our agency prides itself in providing our clients with choice, providing them expertise, and giving them fantastic service. We are passionate about helping you protect what you value most.

Maybe Santa was extra good to you this year and you have some valuables that you would like extra protection for. Or maybe you’ve inherited a valuable collection from a parent or grandparent. Maybe you’ve been collecting antiques for a couple of decades, but have never made a call to your insurance agent. Don’t delay another minute!

It won’t cost you a penny for one of our agents to give you a quote! 

By getting in touch today, you can decide for yourself if you want to invest in a Personal Articles Policy and have a little extra peace of mind.

Related Articles:

What Does Homeowner Insurance Cover? Most Popular Questions Answered

12 Factors That Affect Your Auto Insurance Costs


Tammy Christopher