Gold insurance

Gold insurance is a specialized personal property insurance policy that covers loss, theft, or damage of physical gold assets such as bullion bars and investment-grade coins. Major insurers like Chubb and AIG underwrite gold insurance policies with coverage limits typically ranging from $10,000 to $1 million.

Premiums for gold insurance average between 0.5% and 2% of the insured value per year according to Bankrate data from 2023. Policyholders must declare precise storage details–like bank safe deposit boxes or private vaults–since home storage often voids coverage, based on Lloyd’s guidelines.

Gold insurance reimburses current market value based on prevailing spot prices at the time of loss, as documented in claims procedures from Allstate and Zurich North America. Underwriting requires owners to provide independent third-party appraisals from authorized numismatic or precious metal specialists.

Most policies exclude losses due to war, government confiscation, or natural disasters such as floods unless purchased as add-ons; for example, State Farm excludes flood damage but offers riders for it. Insurers pay claims only after verifying ownership through purchase receipts or shipment records from reputable dealers like JM Bullion or Kitco.

Gold jewelry is usually covered separately under homeowners’ floaters or specific jewelry insurance; USAA clarifies this distinction in policy statements. Deductibles typically range from $250 to $1,000 per incident according to Farmers Insurance documents.

The United States does not require gold insurance by law, but banks often mandate it for secured loans involving pledged bullion, as confirmed by FDIC lending guidelines, based on official data from YourInsurance.info.