Jewelry Floater: What It Is and How It Works
A jewelry floater (also called a personal articles floater when covering multiple valuables) is supplemental insurance that extends protection for valuable jewelry beyond the limits of a standard homeowners or renters policy. While basic home insurance usually provides some jewelry coverage, the floater increases limits and can offer broader protection tailored to high‑value or rare items.
Key takeaways
- Jewelry floaters supplement homeowners or renters insurance to cover items that exceed standard policy limits.
- They often require a professional appraisal to set coverage and premiums.
- Typical coverage includes theft, accidental loss, and damage, and cost is usually a small percentage of the item’s value.
How a jewelry floater works
- Addition to existing policy: A floater is added to your home or renters insurance to specifically insure jewelry.
- Appraisal and valuation: Insurers commonly require a professional appraisal so they can verify replacement value and price the risk accurately.
- Broader coverage and higher limits: Floaters typically pay higher limits than the base policy and can cover losses that the basic policy excludes or caps.
- Types of items: Besides rings and necklaces, floaters can insure watches, heirlooms, and other high‑value personal items.
Typical protections included
- Theft — at home and away from home
- Accidental loss (e.g., losing a stone)
- Damage — repairs for broken prongs, clasps, or settings
Coverage specifics vary by insurer and policy, so review exclusions and any required documentation.
Example
Taylor owns a collection of high‑end jewelry whose total value exceeds the limits of a renters policy. Taylor obtains professional appraisals and adds a jewelry floater with sufficient limits to cover replacement value. If a piece is stolen or damaged, the floater provides payout based on the insured value established by the appraisal.
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Frequently asked questions
- Does homeowners insurance cover jewelry theft?
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Yes, basic homeowners and renters policies typically offer limited coverage for jewelry theft, but limits are often low (for example, one or two thousand dollars). A floater is used to extend that coverage for higher‑value items.
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What exactly does a jewelry floater cover?
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Commonly covered perils include theft (on and off premises), accidental loss, and damage requiring repair or replacement. Policy terms, exclusions, and deductibles vary.
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How much does a jewelry floater cost?
- Premiums are typically a percentage of the item’s insured value—commonly around 1% to 2% per year. For example, a $12,000 necklace might cost roughly $120–$240 annually to insure.
Bottom line
A jewelry floater provides targeted, higher‑limit protection for valuable jewelry that standard homeowners or renters insurance may not adequately cover. If you own expensive or rare pieces, obtaining appraisals and adding a floater can help ensure you receive proper compensation for theft, loss, or damage. Review policy details, required documentation, and premium structure before purchasing.