Did you know that jewelry, from engagement rings to necklaces, is by far the most inherited item in families?
These special pieces are passed down from generation to generation, becoming heirlooms that you and your children will treasure for years. But what happens if you lose your most precious piece of jewelry?
If you’re worried about keeping your jewelry safe, there is one option that could help give you a little peace of mind: insurance. Although insuring jewelry won’t bring back lost or broken pieces, it will give you the money to replace them, making your loss less painful.
Find out everything you need to know about jewelry insurance companies and how you can get your favorite pieces insured in this guide.
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What Is Jewelry Insurance?
Have you ever stopped to think about the fact that some of the most valuable and precious items in your home aren’t insured? From your diamond wedding ring to a pearl necklace passed down from your great grandmother through the generations, it’s bizarre when you think that these items often aren’t insured! But, what actually is jewelry insurance, and is it worth it?
Jewelry insurance is just like any other type of insurance. You pay insurance companies a fee (usually monthly), and in return, they payout f you lose your jewelry if it’s damaged or stolen. Just as with fine art and other precious goods, the payout may not always cover the entire cost of the piece depending on your amount of coverage, but it’ll at least cover a large chunk if it doesn’t.
Why Insuring Jewelry Matters
Taking out insurance is a form of protection against those worst-case situations. For example, if someone breaks into your home and steals your incredibly important engagement ring and costly sapphire earrings, you’ll be able to file a claim for the replacement cost and cover the loss of your valuable jewelry.
Your insurance cover can also help with repair costs. So, if a pearl necklace breaks, you should be able to file a claim for the wear and tear and receive a payout from your insurance policy.
When Should You Insure Your Jewelry?
You should take out an insurance policy for your jewelry items as soon as you acquire them. You never know when something will happen, and just because an item is brand new doesn’t mean you won’t damage or lose it! Taking out an insurance policy could prevent some real heartbreak.
What Jewelry Insurance Do You Need?
If you have valuable items, you need specific jewelry insurance that will take over when your normal insurance doesn’t cover your damages or loss. This type of insurance is often known as a jewelry floater or rider insurance policy, and it covered your pieces against damage, loss, fire, and theft. You should be aware of what your insurance company classifies as jewelry, as items like watches and hairpins are often not covered and will need separate insurance policies.
A Typical Insurance Policy for Jewelry
A typical jewelry floater policy will be an add-on to homeowners or renter insurance. It’s not too common for an insurance company to only give out cover for a piece of jewelry or even jewelry collections.
Different price points will often vary cover. A basic package, for example, may offer cover for jewelry lost through theft or in fires but won’t cover if you accidentally lose or damage your piece of jewelry. They’ll also have a coverage limit, say $15,000, which is the maximum they’ll payout.
Other policies will cover a broader range of worst-case scenarios. For example, if the ring’s stone falls out, your policy will pay for any repairs with no deductible. Your policy may also cover fine art and other expensive purchases.
It’s vital you get the correct amount of coverage for your collection in order to make your policy worthwhile. We’ll now go through some of the steps that will help you do just that.
Have Your Jewelry Appraised
Your insurance cost will vary based on not only the quantity of your jewelry but its collective value. To ensure you aren’t paying too much and to find the right policy, you should first have your collection appraised by a professional. Once you know the value of each piece, you can get the exact dollar amount in your insurance payout if anything happens to it.
Here’s a small guide to having your jewelry appraised:
What Is an Appraisal?
A jewelry appraisal is an official valuation of your piece by a qualified professional. You’ll be given an official document with the assigned value of each individual piece that you can take to your jeweler. However, be aware that appraisals will often inflate the value of your jewelry, so if you go to sell your piece, you may be disappointed at the actual retail price.
What Type of Appraisals Are There?
Nearly all jewelry stores will offer appraisal services to value your pieces. If you don’t find a qualified appraiser, you’ll be getting a less reliable jewelry opinion. Someone will usually do this with in-depth knowledge of the industry, but they won’t be trained and certified.
The best option is to use the GIA’s own list of certified appraisal associations. This will ensure you choose a reliable and professional appraiser to properly value your items, giving you the peace of mind that your insurance company will pay you properly if something happens.
You May Already Have an Appraisal
If you recently bought a piece of jewelry from a reputable seller, you may already have an official appraisal. Be sure to check first, and it’ll save you a lot of time and money. You won’t have to find your own appraiser, and the document will be reliable and up-to-date for a recent purchase.
Record Your Jewelry
Once you’ve scheduled jewelry appraisals, it’s time to document your collection properly. Take pictures of every item you own that shows its current condition, as well as any receipts or certificates you may have from the purchase. Compile these in one folder and make sure you send all the information to your chosen insurer, too.
Questions to Ask Before You Choose Your Policy
Insurance policies aren’t always easy to navigate. But, by reading this article and spending some time properly researching your options, you’re going to be in a much better position to choose the right policy for your collection. To save you from making any mistakes, here are a couple of questions you should go through when looking at different providers:
How Do You Prove Damage or Loss?
Different insurers will ask for different proof of damage or loss, and some will simply take your word that the piece was lost as the truth (though they may investigate suspicious claims, so be warned that you can still be caught out if you try to commit fraud). If a company asks for a lot of information, you may not have to prove a claim, and they may be one to avoid.
How Will You Be Compensated?
Will the company cover the entire cost of damage to a piece, or just the cost to repair one section of it? If you have a priceless heirloom that’s either antique or custom-made, it may be tricky to repair. In these situations, you may prefer a full payout for a replacement.
How Will the Reimbursement Work?
Insurance company reimbursements can work differently. Some companies may ask you to pay the bill for repairs or replacements before they payout, while others will pay as soon as you make a claim. If you don’t have the money to pay for the damages without a payout, you need the latter option.
Are All Damages and Losses Covered?
Check what’s covered under your policy. If there are any exceptions that a company won’t pay out for, are you okay with them?
Will Coverage Change Over Time?
When insuring jewelry, some companies will offer different coverage over time. This will vary as the market value of your metals and gemstones fluctuate. For example, if the price of diamonds increases drastically, they may offer less coverage for loss or damage.
Ask Our Team for Help Insuring Your Jewelry
Insuring valuable jewelry is essential if you don’t want to risk losing a lot of money! Your pieces can still get lost, damaged, or stolen no matter how careful you are. Wear and tear is inevitable over time, but a good policy will give you the peace of mind that your jewelry is protected.
If you want to learn more about jewelry insurance, find the right policy for your collection, or speak to an expert, get in touch with our team at LoPriore today. We’re the experts you can trust when it comes to jewelry insurance.
