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Back to FAQ.
Can you explain about dollar limitations on valuable items, such as jewelry, furs, etc.?
These items are covered under the home policy as part of the contents of the home. They are, however, only covered for the perils of the main policy and are also subject to any dollar limitation in that policy.
Neither the Standard nor the Broad policy, therefore, would provide coverage if you lost such an item, since these policies are written on a Named Peril basis for the contents coverage.
While the Comprehensive coverage would most likely cover "lost" jewelry, it would be subject to a relatively low dollar limit of a few thousand dollars.
People therefore tend to add jewelry on specific riders to obtain better (all risks) coverage if the policy is a Standard or Broad, and to eliminate the dollar limitation.
Make sure you have your agent or broker explain the various options to you. At the lower end of the scale, water damage caused by water overflow from the plumbing system, water from burst pipes, and also frozen pipes could be covered, but not damage caused by continuous seepage, sewer backup, etc.
With this very significant peril that can cause so much damage, it is important that you understand precisely what your policy covers -- and what is excluded.
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