You have insurance for a lot of things – your home, your car, and your health. But have you thought about insuring your jewelry? After all, your jewelry is valuable, in more ways than one. Not only is it worth money, but it’s also meaningful sentimentally, especially if it’s something like a family heirloom or your engagement and wedding rings.
What’s the point of insuring jewelry, and when should you consider doing so? We’ve compiled some information below to help you decide if purchasing this type of insurance is right for you.
Homeowners Insurance Might Not Cut It
If you have homeowners or renters insurance, you might think that your jewelry will be covered sufficiently, but this isn’t always the case. That’s why it’s a great idea to check your policy and read the fine print. It’s a bit of a hassle, but totally worth it.
- Even if your jewelry is covered, it’s wise to look at just how much coverage you’re getting for it, as there will likely be limits. Oftentimes, people find that these policies offer inadequate coverage, but it will really depend on your insurer and your particular plan. While some might cover thousands of dollars in jewelry, others might only provide coverage for hundreds of dollars in jewelry. Still, others might not cover it at all.
- Also, check your policy to determine the circumstances in which your jewelry would be covered. For example, will the insurance step in if you lose your jewelry, or will it only cover stolen items? Will you be covered if something happens to your belongings while you’re traveling? And will the insurance cover any damage that your pieces might incur at any point in time?
- Finally, you’ll want to know what to expect if you were to file a claim for lost, damaged, or stolen jewelry. Can you anticipate that they’ll reimburse you? What criteria will be used to calculate value? Will the reimbursement be based on the present value of the piece or the price that you paid for it? Will you have to pay a deductible? Will they physically replace the jewelry with something similar or an exact replica, or will they just give you money for it?
Unhappy with Your Existing Coverage? Add to It!
After answering all of the questions above, you might realize that your existing homeowners or renters insurance simply doesn’t provide you with the coverage you need for your jewelry. In this case, you have a few options:
- You might be able to keep your existing policy and easily add a rider or extension to it in order to cover jewelry. Or, you might be able to get an additional policy specifically for jewelry from your insurer, perhaps even at a discount, so you don’t have to shop elsewhere.
- Ask about the possibility of scheduling your property if you want extra coverage for specific items, like a wedding ring. This may help you rest assured that the full value of the jewelry will be covered when you file a claim.
- Apply for a separate jewelry insurance policy from another company. This might be another large provider that offers a range of policies or it might be an insurance company that provides coverage solely for jewelry. No matter what, read through the fine print before signing on the dotted line. That way, you’ll know exactly how much is covered, when it will be covered, and any limitations you might face when you file a claim. All of these factors will help you determine which plan is best for your needs.
Note: When applying for this insurance, you might be required to get your jewelry appraised by a professional to determine its true value.
How Much Does Jewelry Insurance Cost?
As you probably expected, how much you’ll pay for this coverage may depend on your location and other factors. For example, if you’re living in an area where there’s a higher risk of becoming a victim of theft, you might have to pay more. Also, some providers might be willing to give you a break if you can prove that you have a safe to store your valuables in or if your home is equipped with a security system.
Generally, this insurance might cost anywhere from 1% to 2% of your jewelry’s value. So, for example, a $3,000 ring might be insured for about $30 to $60 annually. But, again, rates will depend on various factors and they’ll vary from one insurer to the next.
What to Do After You Get the Right Insurance for Your Jewelry
Once your policy is active, store all of the important relevant documents in a secure place. This will include both the actual insurance documents that prove what’s covered and what’s not, as well as any documentation that you have on your jewelry, from receipts and appraisals to certificates and photos.
To prevent theft, damage, and loss of jewelry, it’s best to always store it in a safe deposit box. When traveling, don’t leave your jewelry in your luggage and only pack what you plan on wearing.
Tip: Have your jewelry inspected and appraised on a regular basis, such as every couple of years. Doing so can help you ascertain whether or not you have enough coverage, as the value of precious metals and gemstones will change over time. Plus, this may be helpful if you have valuable vintage pieces that you want to insure.
Should You Get Jewelry Insurance?
Ultimately, it’s up to you to decide whether or not you want to get extra jewelry insurance, beyond what your existing plan already covers. If you’d be devastated if something were to happen to your jewelry or if you wouldn’t be able to cover the cost of replacing it, the right policy can give you the peace of mind that you need.
Sources:
https://www.investopedia.com/articles/personal-finance/062615/it-worth-it-insure-my-wedding-ring.asp
