Most homeowners policies cover things like jewelry, watches and fur coats, but there is a limit to liability (how much the company will pay). So yes, you don't need to own the Hope Diamond or a collection of Faberge eggs to consider a special policy.

According to our friends at the Insurance Information Institute (www.iii.org), an insurer is not going to pay out more than a capped amount in the policy. You should pay special attention to jewelry. Jewelry is just plain easy to steal and easy for criminals to resale. So to keep policies affordable, the liability of most policies for theft is $1,500.

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Now, there are different ways of addressing the coverage gap for valuables. One is to raise the overall limit of liability. Bear in mind this will leave you with a max number for any single item (say, $2,000) with an overall coverage of $5,000. If that's not acceptable, especially for those with extremely rare jewelry pieces, you need to schedule each individual item with high value with what is known as a "floater" policy.

A "floater" will certainly cost more, but will cover a loss in any circumstance, beyond the scope of a homeowners policy.  Even accidents like dropping a ring down a drain or leaving a watch in a hotel room would cover the total value of a piece.  Should you want to purchase a floater policy,  the insurer will want to have the piece professional appraised.  Don't be caught off guard. A thorough home inventory can help you flag valuable items that you would want to purchase a floater for.