Posted February 8, 2024 in Homeowners Coverage

So, you bought her jewelry for Valentines Day

For the jewelry to be insured there must be an insurable interest at the moment of the loss. If you are married, problem solved. The jewelry needs to be scheduled onto the home policy, even if it is a renter’s policy.

But if you are buying for someone you do not have a legal relationship with pay attention.

When the ring is purchased, the buyer owns it. Once the ring is given away the insurable interest transfers to the person receiving the gift. Since scheduled property is only scheduled once it is listed, it makes sense for the buyer to schedule the ring on their homeowner’s policy first. When the ownership transfers, then the jewelry needs to be insured by the recipient.

Scheduling the item removes the internal policy limit of $1,500, and increases coverage to the value of the item. It also is now covered for losses such as losing it.