No matter how much you paid for your jewelry, insurance is a way of protecting its value.
You have a few options when considering insurance for your jewelry:
Renters and homeowners insurance policies:
While these policies may cover jewelry theft up to a certain limit, you may not be protected for other losses, like fire or flood. Full coverage for expensive items like jewelry can be obtained by purchasing scheduled personal property coverage — an insurance policy extension that covers specific listed items.
Jewelry insurance:
This specific type of insurance usually covers loss due to theft or other reasons as well as routine damage that comes with wear and tear. Jewelry insurance premiums vary depending on use, storage, type of home and security system. In general, it costs more to insure one extremely valuable piece than to insure several less expensive ones. Using a separate jewelry insurance provider for claims also means your renters or homeowners policy will remain unaffected.
How to insure your jewelry
1. The first step is to get your jewelry pieces appraised by a professional appraiser. This is the best way to properly protect your jewelry’s value. A receipt for your purchase may also be acceptable, so check with your insurance provider to see what it requires. The important thing is to get insurance as soon as possible, and many times insurers will allow you to start the process of buying the policy before the appraisal is complete. In fact, you may be able to request an appraisal at the time of purchase.
2. Find out what coverage is included in your existing renters or homeowners policy. If it’s not adequate for your situation, you’ll need to seek out a separate policy. Questions to ask include:
- Can you use your own appraiser or do you need one determined by the insurer?
- Will the policy cover you for loss when traveling?
- How will you be required to prove the loss of your jewelry?
- Will the policy only cover theft? Will it also cover mysterious disappearance, damage, or loss due to a fire or other disaster?
- Are items covered for full replacement cost? Will the company send you a check, or will they require you to replace the ring with the same or similar ring from a certain store?
To make certain that jewelry insurance continues to reflect your jewelry’s fair market value, it’s recommended that you have your jewelry reappraised every two to four years and notify your insurance broker of any changes.
