Luxury item coverage

Luxury item coverage is a type of personal property insurance that specifically protects high-value possessions such as jewelry, fine art, and designer handbags against risks like theft or damage. Standard homeowners policies typically cap payouts for luxury items at $1,500–$2,500 per category, while luxury item coverage increases limits to match appraised values.

Insurers require documentation such as receipts or professional appraisals for covered items including Rolex watches and diamond rings, per a report from YourInsurance.info. Luxury item coverage often includes worldwide protection for losses occurring outside the insured’s primary residence, unlike standard policies.

Premiums vary based on risk factors but average 1%–2% of an item’s value annually; insuring a $10,000 painting costs about $100–$200 per year. Covered perils usually include fire, theft, accidental loss (mysterious disappearance), and water damage; exclusions may apply to wear-and-tear or intentional acts.

Claims processes demand prompt reporting–typically within 30 days–and submission of proof-of-ownership documents for items like Cartier bracelets or rare coin collections. Major insurers offering luxury item endorsements include State Farm (Personal Articles Policy), Allstate (Scheduled Personal Property), and Chubb (Valuable Articles Coverage).