​Mysterious Disappearance and Jewelry

Mysterious disappearance is a term often used by insurance professionals to describe a claim for lost jewelry or a lost gem from a piece of jewelry. The disappearance of the item might not actually be a mystery – the insured person might know exactly where the item was lost – but it might be irretrievable. For example, suppose a woman might lose her wedding ring while swimming in a lake. She knows where the ring is, but to her, it is lost forever.
Most Policies Provide Limited Coverage

• Homeowner's insurance policies typically provide limited coverage for jewelry. Policies generally do not cover jewelry, or gems from jewelry pieces, that are simply lost or mysteriously disappear. Read your homeowner's insurance policy carefully to determine whether your valuables, such as a diamond ring, are adequately insured.
• Insurance policies differ from one company to the next, but policies typically limit coverage for jewelry and other types of items that might be very valuable. The most common types of homeowner insurance policies impose a limit of $1,500 for loss by theft of jewelry, watches, precious and semi-precious stones. This means that, regardless of how many jewelry items might be missing following a theft loss, the insurance company will not pay more than $1,500 for the loss.
• There is no limitation on jewelry (up to policy limits) if the loss occurs as a result of another insured peril. So, for example, if jewelry is damaged as a result of a fire the items would be covered. There is no coverage at all for jewelry or gems that are simply lost because mysterious disappearance is not a peril covered under the policy.

Now is a great time to review your current coverage. We will give you a free, no-obligation review even if you are not insured through our agency.