Insuring Jewelry Is A Good Plan

Angus asks if Dave recommends insurance on jewelry such as diamonds. Dave says yes but explains in more detail.

QUESTION: Angus on Facebook asks if Dave recommends insurance on jewelry such as diamonds. Dave says yes but explains in more detail.

ANSWER: Yes, but you have to keep in mind that generally your homeowner's policy has coverage for a certain amount. You need to find out what that is. It's got a specific amount set aside for jewelry. If you start to collect jewelry that is over that, then you schedule it and list the actual piece, keep an appraisal in the lockbox (it's probably a good idea to do anyway), and keep an appraisal in your file—a retail appraisal for what it takes to replace that diamond or whatever it is. Then as you schedule it, you're going to pay a little bit more for each item—an amount on the schedule. Yes, I would schedule them and anything else you have that has value like art, collectible guns and those kinds of things.