It’s Valentine’s Day, and thoughts of people everywhere turn to … jewelry. 

Love isn't likely to be a cheap thrill this Valentine's Day, as consumer spending related to the holiday is expected to reach an all-time high thanks in part to the last several months of domestic job growth and wage gains. The National Retail Federation estimates Americans will shell out more than $19.7 billion for Valentine's Day.

About one of four Americans buys jewelry, spending $2,000 per year on average, and industry experts expect jewelry sales to grow by at least 5% annually through 2025. Those who don’t buy shiny things for Valentine’s Day may prefer other types of valuables, such as electronics, artwork, antiques, wine and furs.  

Whatever the purchase, American consumers should take steps to safeguard and insure their valuables. Having the right insurance coverage will provide financial protection and is an important first step after receiving a Valentine's gift of value. 

According to the Insurance Information Institute. (I.I.I.), jewelry losses are among the most frequent of all home insurance content-related insurance claims. Fortunately, there are four relatively simple steps everyone can take to ensure adequate protection for their new jewelry:

 1) Contact your insurance professional immediately. Find out how much coverage you already have and whether you will need additional insurance. Most standard homeowners and renters insurance policies include coverage for personal items such as jewelry; however, many policies limit the dollar amount for the theft of high-value personal possessions—such as jewelry—to $1,000 to $2,000. So, you would be covered if the item were destroyed by disasters listed in the policy such as a fire or hurricane, but if your expensive new present is lost or stolen you would need separate insurance to be covered, pointed out the I.I.I.

 To properly insure jewelry, consider purchasing additional coverage through a floater or an endorsement. In most cases, these add-ons to a homeowners or renters policy would also cover you for “mysterious disappearance.” This means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected. Floaters and endorsements carry no deductibles, so there is no out-of-pocket expense to replace the item.

 2) Obtain a copy of the store receipt. Forward a copy of the receipt so that your insurance company knows the current retail value of the item. Keep a copy for your records, and include it with your home inventory. If the item was purchased on sale, also get a copy of the appraised value of the item.

 3) If you received an heirloom piece, have the item appraised. Heirlooms and antique jewelry will need to be appraised for their dollar value. You can ask your insurer to recommend a reputable appraiser.

 4) Add the item to your home inventory. An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance, and speed up the claims process if you have a loss, so remember to add your new jewelry to your inventory. And if you don’t yet have an inventory, celebrate your engagement by creating one with your fiancée. To make creating a home inventory as easy as possible, the I.I.I. offers free Web-based software and apps, available at Know Your Stuff® - Home Inventory.

Finally, if you don’t think you need renters insurance, think again. A 2013 Insurance Information Institute poll found that 96 percent of homeowners had homeowners insurance but only 35 percent of renters had renters insurance. If you rent your home, renters insurance can provide important financial protection in the event your belongings are stolen or destroyed.

Contact one of our Baldwin / Welsh & Parker insurance agents for more information and make certain you secure the right coverage for your special Valentine's gift!