As jewelry spending surges, Mercury Insurance warns many high-value gifts may exceed standard coverage limits
LOS ANGELES, Feb. 10, 2026 /PRNewswire/ — Valentine’s Day often sees a significant uptick in the purchase of fine jewelry, as couples look to express their love with gifts that can be cherished for a lifetime. The National Retail Federation projects that Americans will spend over $6 billion on jewelry this Valentine’s Day, reinforcing its status as the top gift category for the holiday. Yet, as the excitement unfolds, Mercury Insurance warns that many gifts may be at risk of insufficient insurance coverage.
Understanding the Financial Value of Emotional Gifts
While the emotional significance of jewelry often takes center stage, its financial value is crucial and can often be overlooked, especially after the moment of giving has passed. High-value items, such as engagement rings or luxury watches, may not only hold deep sentimental meaning but also a significant financial worth. Without proper documentation and consideration for insurance, consumers run the risk of being under-protected.
The Risks of Standard Coverage Limits
Many homeowners and renters insurance policies come with sub-limits for jewelry, typically ranging from $1,500 to $2,500, depending on the policy. These amounts may far short of the actual value of a piece of jewelry, especially as engagement rings and heirloom pieces can easily exceed $5,000. This discrepancy poses a significant risk to consumers who may mistakenly believe they are fully covered.
Guidance from Mercury Insurance
Larry Anderson, Director of Underwriting Operations at Mercury Insurance, emphasizes that understanding coverage limits is vital. “High-value gifts can quickly surpass normal limits,” he says. To ensure that precious items remain protected, he offers several key recommendations:
- Keep Documentation: Save all receipts, appraisals, and certificates of authenticity. Thorough records establish value and assist in future coverage assessments.
- Professional Appraisals: As the value of fine jewelry can appreciate over time, obtaining a professional appraisal every 3-5 years is advisable. This helps confirm that your coverage remains adequate.
- Review Coverage Limits: It’s critical to check standard homeowners and renters insurance policies for limitations on jewelry. Items exceeding these limits often necessitate additional coverage.
- Life Events Trigger Reviews: Milestones such as engagements, weddings, or anniversaries often bring new high-value purchases. These events are an excellent opportunity to review and adjust insurance policies accordingly.
- Secure Storage: Utilize safes or secure storage options to mitigate risks when items are not worn. Notably, theft is among the most prevalent causes of jewelry insurance claims.
As Anderson notes, “As life progresses, so do our values.” Regularly evaluating personal property coverage ensures that protection remains relevant to your current possessions, not just those from years past.
The Importance of Timely Insurance Reviews
With engagement season lasting well beyond Valentine’s Day and billions spent yearly on such treasures, Mercury Insurance encourages consumers to prioritize insurance reviews. These check-ups allow individuals to safeguard not just the gift itself, but the substantial financial investment it represents.
Valentine’s Day marks a crucial moment for consumers to reassess their jewelry insurance needs. As interest peaks in high-value jewelry purchases, understanding coverage intricacies becomes even more vital.
For further guidance on protecting personal property and reviewing insurance options, visit the Mercury Blog.
About Mercury Insurance
Mercury Insurance, traded on the NYSE under the ticker MCY, is a renowned multi-line insurance provider, offering a diverse range of personal auto, homeowners, renters, and commercial insurance options through an extensive network of independent agents. The company operates in various states including Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia, with auto insurance available in Florida. Since its inception in 1962, Mercury has consistently prided itself on delivering substantial value for insurance, leveraging competitive rates alongside superior customer service through a robust workforce.
For further details, discover more at www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.
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