Homeowners

Let’s say you’ve got a few modest luxury items—maybe an engagement ring, a watch you got as a big promotion gift, or a necklace that hasn’t seen daylight since your cousin’s wedding. You’re not a collector, you’re not hitting up Christie’s auctions, and you’re certainly not trying to insure the family jewels. For you, homeowners insurance might just do the trick. But like any budget option, it’s not without its quirks.

Here’s the thing: homeowners policies aren’t designed to handle high-end luxury. They’re like trying to fit a V12 engine into a Honda Civic—it works, sort of, but don’t expect peak performance. This option is for people who aren’t planning to dive deeper into the luxury pool. If you’re not looking to expand your collection and your total luxury items clock in under $25K, this might be the lane for you.

Caps on Coverage:
Most homeowners policies set a cap for luxury items, typically around $1,500 to $2,000 per item. That’s enough to cover a decent engagement ring or an entry-level watch, but anything above that? Good luck.

Riders for Added Coverage:
If you’ve got a few standout items, you might be able to add a rider to your policy. This lets you itemize specific pieces for additional coverage—kind of like adding spoilers and custom rims to your car. Rates can vary based on where you live, but it’s often less about the items themselves and more about how much business you’re bringing the carrier. If you’re bundling your home and auto policies, they’re more likely to play ball.

Here’s where homeowners insurance gets tricky. These policies often only cover the invoiced value of an item, not its fair market value.

• Example: Let’s say you’ve got a watch. It was invoiced at $10,000 when you bought it, but the market’s been hot, and now it’s worth $25,000. If it’s lost or stolen, your policy will likely reimburse you for that original $10K—not a penny more.
• This means if your luxury items are prone to appreciation—like watches, rare jewelry, or gold—you might want to think twice about relying on your homeowners policy.

This is the starter kit of luxury item coverage. It’s best suited for:

• Modest collections: Engagement rings, a watch or two, and maybe a couple of small pieces of jewelry.
• Non-enthusiasts: People who aren’t planning to expand their collection over time. If you’re happy with what you’ve got and don’t plan to dive into the deep end of the luxury world, this is your lane.

Homeowners policies can be cost-competitive, but it’s not always about the luxury items themselves. Rates often depend on:

• The value of your home.
• Whether you’re bundling your home and auto insurance with the same carrier.
• Where you live—because let’s face it, insuring a diamond ring in Beverly Hills isn’t the same as insuring it in Peoria, Illinois.

If you’re the type who owns items that are significantly undervalued on paper—think a $15K watch with a $6K invoice—homeowners insurance isn’t for you. This policy isn’t going to protect you against market appreciation, and in the event of a loss, you’ll only see a fraction of what your items are actually worth.

let's take a joyride through the top homeowners insurance carriers in the U.S:

• State Farm: Think of them as the Toyota Camry of insurance—reliable, everywhere, and not exactly thrilling. They hold the largest market share, insuring more homes than anyone else. 
• Allstate: You're in good hands, or so they say. With a market share of 9%, they're like that dependable sedan your dad always trusted. 
• USAA: Serving military members and their families, they're the armored Humvee of insurance—tough, specialized, and not for civilians. They boast a 6.67% market share. 
• Liberty Mutual: With their catchy ads, they're like the flashy sports car that catches your eye but may not have the performance to back it up. Holding a 6.41% market share, they're a significant player. 
• Farmers Insurance: They know a thing or two because they've seen a thing or two. Think of them as the dependable pickup truck—rugged, reliable, and ready for any disaster. They have a 6.36% market share. 
• Travelers: The minivan of insurance—practical, family-friendly, and maybe a bit boring. They cover a lot of ground with a 4.64% market share. 
• American Family Insurance: Based in Madison, Wisconsin, they're like that classic station wagon—solid, family-oriented, and a bit nostalgic. They hold a 4.18% market share. 
• Nationwide: On your side, like a trusty SUV—versatile, reliable, and ready for both city streets and country roads. They have a 2.94% market share. 
• Progressive: With their quirky commercials, they're like the hybrid car—modern, efficient, and appealing to the younger crowd. They have a 1.85% market share. 
• GEICO: The quirky subcompact of insurance—fun commercials, unbeatable for auto coverage, but when it comes to homeowners insurance, they’re more like a middleman. They don’t underwrite the policies themselves, instead partnering with companies like Liberty Mutual or Travelers to do the heavy lifting. Great for bundling, but not exactly a specialist in this space.
  

Remember, choosing an insurance carrier is like picking a car—it should fit your needs, budget, and give you peace of mind on the road ahead.

Homeowners insurance is the economy class of luxury item coverage. It gets the job done for modest collections and people who aren’t diving headfirst into the luxury world. But if you’re dealing with items that appreciate in value—or if you’ve got a taste for expanding your collection—this policy won’t cut it.

For the entry-level luxury owner, it’s a practical solution. For anyone else, it’s like putting regular gas in a Ferrari—functional, sure, but you’ll regret it in the long run.