Will my renter’s insurance cover a lost wedding ring?
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Asked June 4, 2012
Renters insurance is a special type of homeowners policy, designed specifically to include personal property and liability concerns for a tenant. If your property is covered under a renter's insurance policy, the cost of the ring will be paid to you, up to the per-item limit of the policy. This means that even though your wedding ring may be covered, the coverage may not be sufficient to replace the ring. However, there ways to insure your ring for full value, if you have not already done so.
Most renters' insurance policies put a limit of around $1000 on each item to be replaced, along with a maximum claim limit which varies by state and insurance carrier. If your wedding ring is valued at more than that, after depreciation, then it may not be fully covered under a standard policy. You would receive a check for the maximum amount, but the remainder would an out of pocket cost. To avoid this, you can increase the limits on the policy, or take out a separate rider for your expensive possessions.
Your deductible could be a factor in the decision to file a claim, as well. If, for example, your deductible is $1000 or higher, and the wedding ring was valued at a lower amount, filing the claim would be counter-productive because you would still be obligated to pay a majority of the cost out of pocket before the insurance policy paid the remainder. A high deductible can bring down the cost of premiums, but be careful not to make it higher than you are willing to pay out of pocket at any given time.
Answered June 4, 2012 by Anonymous