Does Homeowners Insurance Cover Gold and Silver?

Many people assume their homeowners policy covers everything in the house. For gold and silver, that is usually not the case. Most policies set a small, separate limit for cash, bullion and coins, and anything above it is not covered unless you add coverage.

The fix is usually simple and not very expensive to look into: call your agent, find out your limit, and decide whether to add coverage or keep some metal elsewhere.

This page explains the typical limit, the two common ways to add coverage, what insurers ask for, and how insurance works for a bank box, a depository and shipping. Policies differ by company and by state, so treat this as a guide to the questions to ask, not an answer for your own policy.

Does homeowners insurance cover gold and silver?

Usually only up to a small amount. The New York Department of Financial Services lists a typical limit of $200 for "money, bank notes, bullion, gold & silver."

That figure is a special limit, sometimes called a sublimit. It is the most the policy typically pays for that type of property in one loss, even if your overall coverage for belongings is much higher. The New York regulator also notes that what is paid under these special limits can reduce your overall personal property limit.

For example, if you kept $20,000 of gold coins in a closet and they were stolen, a standard policy might pay only that small limit. Some policies use different amounts, so look for the "special limits" section of your own policy, or ask your agent to tell you the exact figure in writing.

How can I insure gold and silver for more?

There are two common ways. The New York Department of Financial Services describes both for valuable collections:

The Insurance Information Institute, an insurance industry group, makes the same point for jewelry and valuables: raising the limit is the cheaper option but stays capped, while a floater costs more and gives the broadest protection.

Ask your agent whether your company will schedule bullion and coins this way, and whether it has any rules about where the metal is kept.

What do insurers ask for?

Expect to show what you own and what it is worth. That usually means:

• Receipts showing what you bought, when, from whom and for how much.
• A list of each item, with the type of coin or bar, the weight and how many.
• Photos of the items, and of any serial numbers on bars.
• An appraisal in some cases. The Insurance Information Institute says items must be professionally appraised before you buy a floater, and your agent can suggest an appraiser.

Because metal prices move, the value you scheduled a year ago may no longer match what your metal is worth. Ask your agent how and how often to update it.

The NAIC, the national group of state insurance regulators, offers a free home inventory app. It lets you photograph belongings, group them and export the list. Keep a copy of your list and photos somewhere other than your home, so a fire or theft can't take both. Our guide to storing gold and silver at home explains what to record.

Are safe deposit box contents insured?

Not by the FDIC, and usually not by the bank. The FDIC says a safe deposit box "is not a deposit account," its contents are not covered by FDIC deposit insurance if damaged or stolen, and banks "generally do not insure the contents."

The FDIC's advice is to ask your homeowners or renters insurance agent about coverage. Some policies may cover items kept in a bank box, others may not, and the same special limit for bullion may apply. If you keep metal in a box, ask your agent:

1. Does my policy cover property in a bank safe deposit box?
2. Does the bullion limit still apply there?
3. Can I schedule the items in the box on a floater?

Is gold in a depository insured?

Usually yes. Most depositories include insurance in the storage fee, but the details matter.

The Texas Bullion Depository, a state agency, gives one example. It says metal stored there is insured through the Lloyd's of London market against loss or damage, starting once the deposit has been received, inspected and accepted. Items are insured up to their metal value, and you can declare a higher value for a collector coin. Shipments back to the account holder are insured, but you arrange your own insurance when sending metal in.

Questions to ask any depository are on our page about private vault storage.

Is gold insured during shipping?

It depends on who is shipping, so ask before you pay.

• When you buy: ask the seller whether the package is insured for its full value until it is delivered to you, and whether a signature is required. Our guide to buying gold online safely covers this.
• When you ship it yourself: for example to a depository or a buyer, you are responsible for insuring the package. Ask the carrier or the receiving company what they recommend.
• When a depository ships to you: ask whether its insurance covers the trip.

Your homeowners policy may not cover metal while it is in the mail, so don't assume it does.

Is it worth insuring gold kept at home?

That depends on how much you keep there and how you would feel about losing it. Many owners compare the yearly cost of a floater or endorsement with the yearly fee for a bank box or a depository, and choose what fits.

Some split the difference. They keep a small amount at home within, or close to, their policy's limit, and store the rest where insurance is part of the fee. Our guide to where to store gold and silver compares the costs of each option side by side.

Whatever you choose, tell your agent when you buy more. Coverage you set up for a small holding won't stretch to cover a larger one.

Who can I ask about my own policy?

Start with your insurance agent or company, and ask for answers in writing. If you have a question or a complaint they can't resolve, your state insurance department can help. The NAIC keeps a directory of state insurance departments on its website.

What gold and silver can't do

Insurance protects against loss, but it doesn't protect against price. If metal prices fall, your insured value falls too. Gold and silver pay no interest or dividends, and the cost of insurance and storage comes out of any gain you make. Add those yearly costs to the premium you pay when you buy and the lower price you get when you sell, so you see the full cost of owning metal.