Your Home Insurance Has Limited Coverage
The good news is your home insurance policy should provide some coverage for precious metals like gold. The not-so-good news is that you have limited coverage. In most instances, a standard policy limits precious metals coverage to around $5,000. However, if you have gold worth a lot more than this amount, you’ll end up absorbing the extra costs associated with replacement or repair if there’s damage to your gold that needs to be professionally addressed.
It Depends on How Much Gold You Have in Your Home
If you only have a single bar of gold, you likely won’t need insurance beyond your home insurance policy. However, if you have several pieces of gold or a lot of gold jewelry, you’ll definitely want to discuss coverage options with your insurance provider. When you make this determination, make sure to include all the gold you have in your home, which could include jewelry, bars, ingots, and coins. Gold coins are unique in that they can gain value over time that goes beyond their precious metal content. If you have rare gold coins, they might easily be worth far more than what you originally paid for them.
Storing Gold in Your Home Comes with Risks
The purpose of insurance is to protect you from risks. Storing physical gold in your home definitely includes some risks. No matter how well you store your gold, there’s always the risk of theft if it’s known you have gold in your home. With insurance, you’ll have extra protection and peace of mind. Some providers have policies or add-ons specifically for precious metals.
It’s Best to Talk with Your Insurance Provider
If you’re not sure if the amount of gold you have in your home warrants extra coverage beyond your home insurance, talk to your provider to determine if you can benefit from some extra coverage. A good place to start is to get your gold appraised so you know the actual current value. This information will give you a better idea of what may be beneficial for you.
Minimize Risks by Safely Storing Your Gold
Once you get extra insurance for your gold, take some precautions to prevent theft and reduce the risk of damage. Start by using a secure safe or similar storage option. Also, don’t store gold in places where it’s moist or there’s exposure to high humidity. Minimizing risks also has the potential to reduce your insurance premiums or least keep them reasonable.
When they’re looking for the best place to purchase gold bullion and gold coins, Carlsbad precious metals collectors should reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how gold can figure into your investment decisions. Give one of our experienced dealers a call today at (760) 253-8072.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.