Will our renter’s insurance pay for lost/stolen jewelery?

The two primary purposes of renters insurance are to protect you against liability claims and to protect your personal property. Since your jewelry is part of your personal property, it is covered by a renter's insurance policy, but being covered does not always mean you are fully protected. Factors that can have a bearing on whether you are fully covered include the value of the jewelry, the total value of your personal property, and the type of policy you have.

In many cases, insuring your jewelry separately provides the best coverage. This is especially true if you own a lot of jewelry or a few pieces of unusually high value. Another reason to insure the jewelry separately is to maintain your coverage even if you are only living in the current location temporarily. A personal property policy can travel with you if you move, but a renter's insurance policy is designed only for one residential location.

Since your renters insurance has to cover all of your personal property, using it to protect your jewelry could mean that the policy is not sufficient if you suffer a large or total loss. Renters insurance only protects your property up to the limits specified in the policy, so the more property you own; the less complete your coverage will be if you have to file a large claim.

The type of coverage your policy provides is another concern. Most policies written today use Full Replacement Value coverage which will pay for full replacement costs up to the limits of the policy, but some insurers still write policies for Actual Cash Value, which only pays you a depreciated amount for the losses based on the age and condition of the items involved. For the best protection, make sure that your policy is written for FRV coverage. It will cost you a little more but is much more effective when you have to file a claim.