Question

Dianne, who has a large collection of rare jewelry valued at $250,000, has a standard homeowners policy that should provide adequate insurance protection for her jewelry collection. Is this statement true or false?

Answer 1

Standard homeowners insurance usually has sub-limits for jewelry that are below the value of Dianne's rare jewelry collection; she would need additional insurance such as a valuable items policy or a personal articles floater.

The statement is false.

Step-by-step explanation:

The statement that Dianne's standard homeowners policy should provide adequate insurance protection for her rare jewelry collection valued at $250,000 is typically false.

Standard homeowners insurance policies usually have limits on coverage for personal items, especially for valuables such as jewelry. Most policies set a sub-limit for theft of jewelry, which is much lower than $250,000, often around $1,500 to $2,500. To insure her collection adequately, Dianne would likely need to purchase a separate valuable items policy or a personal articles floater that can offer higher limits and cover items on an agreed value basis.