While a box of delicious milk chocolates in a shape of a large heart has long been the default gift to loved ones on Valentine’s Day, nothing screams “I love you” louder than a diamond ring or luxury watch—or so advertisements would have us believe.
Based on a longstanding tradition, jewelry is a durable staple of February 14. In fact, the National Retail Federation estimates that 19 percent of consumers will spend as much as $3.9 billion in total on “something sparkly" this year. Moreover, the Insurance Information Institute (I.I.I.) didn’t miss a beat, recently alerting the public about the importance of safeguarding jewelry gifts this time of year. In doing so, the I.I.I. cited how losses of rings, watches and other jewelry are “among the most frequent of all home insurance content-related claims.”
For policyholders who have collected a drawer of Valentine’s Day jewelry items, it can be a challenge to know whether or not every single piece is covered by a property policy for its current value. The TV show Antiques Roadshow gives viewers a classic case of ‘perceived values.’ When it comes to assigning value to a piece, in many cases the policyholder's perspective does not align with that of a professional appraiser’s. A disparity exists between perceived value and actual value.
To ensure that jewelry items receive their proper RCV, policyholders are typically advised to begin by establishing a catalog of what items are in the home. Taking the time to inventory and record exactly what is at stake, and even adding photographs for special valuable pieces, is probably the best thing policyholders can do to protect their assets. Insurers will love them for it, and the settlement will go smoothly.