Do You Need Insurance for Your Jewelry?

Most people know that it’s important to have insurance for their home, car, and other expensive property, but they may not be aware that you can also insure your jewelry. Other people are aware of jewelry insurance, but aren’t convinced that they really need it.

However, when you consider that you cannot easily replace those expensive diamond earrings you received as a birthday gift, you may start thinking differently. When anything unexpected happens to your jewelry — whether it is lost, stolen, or damaged — you can sleep soundly if you know that your insurance will replace it or help you recoup the cost.

If you’re still wondering whether to insure your valuable jewelry or not, here are some reasons why you should consider it.

Homeowner’s Insurance Doesn’t Always Cover Jewelry

Having homeowner’s insurance doesn’t mean that every single possession under your roof is insured. In fact, some items are explicitly not covered by your homeowner’s policy. This is often true of jewelry worth above a certain amount. Alternatively, your homeowner’s insurance may cover jewelry, but only in certain situations — for example, if your jewelry is destroyed by fire or water damage caused by plumbing problems. In addition, homeowner’s insurance rarely covers lost jewelry.

To obtain more comprehensive coverage for your jewelry, you’ll need to purchase a rider or floater, or extend what’s known as the “scheduled personal property” that your homeowner’s insurance protects. Of course, you can also purchase jewelry insurance separately. However you do it, if you have expensive jewelry, it’s always a good idea to insure it. Don’t simply assume that your current insurance will cover your jewelry.

Get Peace of Mind

Of course, nobody plans to misplace a wedding ring that has existed in the family for generations. But what if the unthinkable happens? Maybe the ring is stolen or lost. Having insurance to cover these precious belongings will offer you some much-needed comfort and peace of mind. Of course, a unique family heirloom can never be truly replaced because it’s one of a kind, but you can still soften the blow by recouping some of its value with insurance.

The need for peace of mind is the most common reason why people insure their expensive jewelry. When your jewels are insured, you’re less likely to worry. Insuring your jewels is the best thing to do if you can’t imagine losing them.

Get Protection from Theft and Loss

Burglaries and theft can happen anywhere and anytime. But no matter how pricey your jewelry is, it’s certainly not worth your life. Don’t try to fight off burglars or thieves to rescue your valuables. If your jewelry is insured, you don’t have to worry about losing it.

Similarly, it be can painful to realize you lost a piece of jewelry, especially if it had sentimental value. You can rest a little easier, however, if you know your jewelry is insured.

Get Coverage for Damage, Too

An insurance policy for your jewelry isn’t just about theft or loss. Jewelry is meant to be worn, not stored in a box or locked away in a safe. But when you wear your jewelry every day, it will inevitably incur some wear and tear. A gemstone may come loose or the metal prongs holding the stone may become bent or disfigured. However, insurance can cover damage as well as loss and theft.

Polices Can Cover Disappearance

Many pieces of jewelry are small and easily misplaced. It’s common for people to look in their jewelry box and realize that their favorite ring or bracelet is missing, but they aren’t sure exactly what happened to it and when. They cannot reconstruct the exact timeline of the disappearance. Maybe the ring fell down the drain as they were washing dishes, or maybe it was stolen when they took it off in a nail salon, for example.

Some policies can cover this type of disappearance as an additional category separate from loss, theft, and damage. This will ensure that your jewelry is still covered, even when you don’t know if a piece was stolen or simply lost.

Purchasing a Policy Is Easy

Many insurers offer free online quotes that deliver estimates within a short time. However, most companies will require an appraisal, especially for higher-value items above $5,000, before issuing you a policy. Always be sure to visit a professional, qualified appraiser. Provide the insurers with proper documentation of your jewelry, so they can provide you with the most accurate appraisal. You’ll also want to take color photos of the jewelry as well.

Premiums vary and can depend on the value of the jewelry, where you live and crime rates in your area, and whether the policy includes a deductible. Low or no-deductible polices generally have higher premiums. Usually, premiums range between 1–3% of the value of the insured piece of jewelry.

When you’re shopping around for policies, be sure to ask a few questions, including:

· Is the full replacement cost covered?

· How is the claims process handled? What proof of theft or loss will I need to provide?

· Will I be given a cash payout or replacement? If the jewelry will be replaced, can I shop at any store?

· Is damage or disappearance (separate from loss or theft) covered?

· Are there any specific situations where the jewelry is not covered?

· Does the policy specify who repairs the jewelry, or can I pick?

These questions can help you find the best jewelry insurance policy for your needs.