Romance, spontaneity, and surprise—that’s what most of us think of when we imagine presenting a loved one with a gift of fine jewelry. But in the midst of the excitement and expectation, it’s easy to forget about safeguarding that gift against theft, loss, or damage. Risk management may not be sexy or spontaneous, but neither is discovering that your carefully chosen gift has been lost or stolen and is not fully covered by your existing insurance policy.

Think you’re already covered? Think again.Most homeowner’s or renter’s insurance policies cover possessions within the home—including jewelry—against loss, theft, or damage.However, most insurers place limits on jewelry at between $1000 and $1500, which leaves you vulnerable if a jewelry item, such as a diamond engagement ring or ruby necklace, is stolen or lost.

So what can you do to ensure that your precious gift is fully insured against theft, loss, or damage? Fortunately you do have options

Raise the jewelry limit on your policy.
You may be able to raise the limit on your homeowner’s or renter’s insurance policy tocover the value of your items.One caution—accidental loss is not covered bymost homeowner’s or renter’spolicies and you will have to pay your deductible before the item is covered. So if that diamond engagement ring gets lost down a storm drain or in the surf at Cancun, you may not be compensated.

Add a collections policy, floater, or addition to your program.
Adding specific coverage for your high-value jewelry items offers you the broadest protection against theft or loss—and covers scenarios that may not be covered by your homeowner’s or renter’s insurance, all without a deductible. To avail yourself of this option, talk with an agent about valuing and insuring your valuables before something happens.

Remember too that once a gift is given, it becomes the responsibility of the recipient to insure it. We hope these tips help you make informed choices when it comes to safeguarding that special gift. Your insurance agent can help you choose the best coverage option for your jewelry and can help you craft a policy that protects both your gift and your peace of mind.