# Jewelry Floater: What Is It, and How Does It Work With Insurance?

## What Is a Jewelry Floater?

A jewelry floater is a type of supplemental insurance designed to protect precious jewelry. It is often purchased alongside other forms of insurance, such as [homeowners insurance](https://www.investopedia.com/terms/h/homeowners-insurance.asp) or [renters insurance](https://www.investopedia.com/terms/r/renters-insurance.asp). Although these types of insurance policies generally include some coverage for jewelry, jewelry floaters can expand this coverage, making them more suitable for valuable items.

### Key Takeaways

*   Jewelry floaters are a type of supplemental insurance intended to protect valuable jewelry.
*   These types of add-on insurance policies are common for a range of valuable personal possessions.
*   To obtain a jewelry floater, it may be necessary to pay for a professional appraisal beforehand.

## How Jewelry Floaters Work

A jewelry floater is an optional addition to a homeowners insurance policy that protects against financial loss from the damage or theft of valuable jewelry. Although basic homeowners policies typically provide some jewelry coverage, individuals with sizable or valuable jewelry collections often opt to purchase a jewelry floater in addition to their basic [policy](https://www.investopedia.com/terms/i/insurance.asp). If the jewelry does get damaged, stolen, or lost, the jewelry floater can provide a higher dollar amount of coverage than would be possible under the basic home insurance plan.

Aside from jewelry, floaters are also often purchased for other types of valuable assets. These are often called personal articles floaters (PAFs). Examples include fine art, [high-end watches](https://www.investopedia.com/the-best-watch-insurance-companies-for-2025-11759517), or even collectibles such as baseball cards. In some cases, investors may even specifically purchase these assets as a type of [alternative asset](https://www.investopedia.com/terms/a/alternative_investment.asp) in their portfolios. For these investors, as well as wealthier individuals in general, purchasing floaters might be a worthwhile expense to ensure peace of mind.

In addition to purchasing jewelry floaters, policyholders will often also obtain formal [appraisals](https://www.investopedia.com/terms/a/appraisal.asp) of their jewelry's worth.

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> An appraisal helps the insured prove the value of their items in the event that they need to file a claim, reducing the risk of any potential disputes with their insurer.

In fact, many insurers will require that a professional appraisal be performed as part of their due diligence on the jewelry floater policy. After all, from the insurance company's perspective, it is important to [understand the value of the item](https://www.investopedia.com/articles/personal-finance/100115/how-value-jewelry-inherited-loved-one.asp) so that it can set its [insurance premiums](https://www.investopedia.com/terms/i/insurance-premium.asp) at an appropriate level.

## Example of a Jewelry Floater

Taylor is a collector of high-end jewelry. Under their rental insurance policy, Taylor is entitled to a certain amount of coverage for all their personal possessions. However, Taylor realizes that if the collection were to be stolen or destroyed, they might quickly exceed the maximum coverage level under their renters insurance policy. Moreover, because the jewelry in the collection is valuable and rare, Taylor worries that the insurance company might not understand its [replacement value](https://www.investopedia.com/terms/r/replacementcost.asp) if they were to file a claim.

For this reason, Taylor decides to take out a jewelry floater. In doing so, Taylor obtains a professional appraisal of their jewelry and incorporates this appraisal into their new insurance policy. That way, if Taylor were to make a claim, they have clarity that the insurance company understands and accepts the actual replacement value of their insured jewelry. Moreover, Taylor is careful to set the insurance policy so that its maximum coverage level would fully capture the value of their collection.

## Does Homeowners Insurance Cover Jewelry Theft?

Yes, a typical homeowners or renters insurance policy will cover jewelry theft, but only up to a set limit—say, $1,500 or $2,000. A jewelry floater will extend coverage for jewelry valued higher than what your homeowners insurance will cover.

## What Does a Jewelry Floater Cover?

Jewelry floaters typically cover a broader range of damage to your jewelry than homeowners insurance would. For example, a jewelry floater may cover:

*   Accidental loss
*   Theft, both at home and away from home
*   Damage to the jewelry, such as broken prongs or clasps

## How Much Does a Jewelry Floater Cost?

Jewelry floaters typically cost between 1% and 2% of the jewelry's value, per year. So if you have a diamond necklace worth $12,000, a jewelry floater could cost you $120 per year.

## The Bottom Line

A jewelry floater is additional insurance you can purchase to protect your jewelry beyond what's covered in your homeowners insurance policy. Buying a jewelry floater can protect your jewelry collection in case of theft, loss, or damage, saving you from out-of-pocket costs to repair or replace it.

> **Article Sources**
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> 1.  Travelers. "[Jewelry, Valuable Items and Engagement Ring Insurance](https://www.travelers.com/home-insurance/coverage/jewelry)."
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> 2.  American Family Insurance. "[How to Insure Jewelry](https://www.amfam.com/resources/articles/understanding-insurance/jewelry-insurance-101)."
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> 3.  Progressive. "[Jewelry Insurance](https://www.progressive.com/jewelry-insurance/)."