How to Protect an Expensive Gift
Laura Adams, MBA
If you were lucky enough to get a sparkly, expensive gift for Valentine’s Day–like an engagement ring–don’t forget to share the good news with your insurance agent! Homeowners and renters insurance policies include coverage for personal items and jewelry, but may only protect you for about $1,000 in the event of theft.
Consider purchasing an endorsement to your insurance or getting a separate jewelry policy that would insure you for any type of loss (including a mysterious disappearance if the ring falls off your finger while you’re snorkeling in Bali on your honeymoon, for instance). That wouldn’t keep you from shedding tears over your lost jewelry, but it would give you the money to purchase a replacement.
You may need to have the jewelry appraised, especially if it’s an antique. Be sure to keep a copy of the store receipt, take a picture or video of the item, and add it to your home inventory. What’s that–you don’t have an inventory of all your personal possessions? It’s easy to create one and to upload a photo of your new jewel using free software at KnowYourStuff.org.
Image courtesy of Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.