Mercury Insurance warns Valentine’s jewelry may be underinsured; urges appraisals and scheduled coverage

Mercury flags Valentine’s jewelry underinsurance risk

LOS ANGELES, Feb 10 (Reuters) - Mercury Insurance is warning consumers that a surge in Valentine’s Day jewelry purchases can leave valuable gifts underinsured under standard homeowners and renters policies. The insurer cites National Retail Federation estimates that Americans spend more than $6 billion on jewelry for Valentine’s Day and notes that most policies have jewelry sub-limits typically between $1,500 and $2,500, well below the value of many engagement rings and luxury watches.

Mercury urges policyholders to take proactive steps before and after exchanges to avoid coverage gaps. The company recommends keeping purchase records, receipts, appraisals and certificates of authenticity, and notifying insurers when household exposures change. Mercury’s director of underwriting operations, Larry Anderson, emphasizes that individual pieces can easily exceed $5,000 and that policies may require endorsements or separate scheduling to cover amounts above sub-limits.

The bulletin underscores that theft remains one of the most common causes of claims, so customers should consider secure storage such as home safes and obtain professional appraisals every three to five years to reflect fluctuating precious metal and gemstone prices. Mercury advises policy reviews after major life events — engagements, weddings and anniversaries — which often introduce high-value items, and recommends scheduling additional coverage to simplify claims and ensure sentimental pieces are financially protected.

Appraisals, endorsements and documentation

Mercury highlights practical steps that speed and simplify claim handling: up-to-date valuations, clear provenance and insurer notification. The company points out that endorsements or floaters often provide broader or agreed-value coverage for heirlooms and luxury items that standard policies exclude or limit, and that keeping current valuation paperwork reduces disputes over replacement costs.

Industry implications and customer action

The insurer’s advisory illustrates a broader industry focus on seasonal exposures and the need for consumers to align asset records with insurance limits. Mercury encourages customers to consult agents promptly to confirm limits, obtain necessary endorsements and consider scheduled personal property coverage where appropriate, as retailers and insurers see predictable spikes in high-value purchases around holidays.