Don't Take a Risk with Your Valentine's Day Gifts

Protect Diamond Rings and Other Expensive Jewelry with Appropriate Insurance, Warns I.I.I.

INSURANCE INFORMATION INSTITUTE
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580

NEW YORK, February 1, 2007 - If you receive an engagement ring or other piece of expensive jewelry on Valentine's Day, make sure you have the necessary insurance, advised the Insurance Information Institute (I.I.I.).

Standard homeowners and renters insurance policies include coverage for jewelry and other valuable items such as furs. However, many policies limit the dollar amount of coverage for the theft, or loss due to a covered peril, of such items-the limit is usually $1,000 to $2,000.

"To properly insure jewelry and other expensive items, 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.

With floaters or endorsements, you are also covered for "mysterious disappearance." This means that if your ring falls off your finger or is lost, you would be financially protected. There are no deductibles and frequently you will get the option of having the insurance company replace the item for you, according to Salvatore.

Floaters and endorsements are available as additions to home and renters insurance policies. Some companies offer a stand alone policy that covers jewelry without having to purchase a homowners or renters policy. 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.

"While there is no way to insure the sentimental value of jewelry, 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 items that were purchased several years ago 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, your premium will be based on the appraised value and, in the event of a claim, you will be compensated accordingly.
• Keep a copy of the store receipt
  You should 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 don't 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 do, of course, have to notify your insurer ahead of time if you plan to do this.
• 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.
• Take a picture of the item or collection
  Get into the habit of keeping a visual record of all of your personal possessions. This helps to document your loss and can speed up the claims process. It is also useful when documenting 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, including valuables. This can help you purchase the correct amount of insurance and will make the claims process easier if there is a loss. To make creating a home inventory fun and simple, the I.I.I. provides free, downloadable software located at http://www.knowyourstuff.org. You can add a digital photograph of your new gift and save scanned receipts. Computerizing your inventory also makes updating it fast and easy.

For more information about insurance, go to the I.I.I. Web site: http://www.iii.org .

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.