Insuring your Fine jewelry
Whether you've paid $10,000 (or more) for a diamond engagement ring or $200 for a gemstone necklace, jewelry insurance is a way of protecting its value from loss. You should insure any type of jewelry that is valuable to you – whether the value is in dollars and cents or emotional value. With appropriate coverage, jewelry insurance will repair or replace a covered piece due to loss or damage.
There are two specific options to consider when insuring your jewelry:
Renters or Homeowners Policy ‐ These policies cover jewelry theft up to a certain dollar limit, and you may not be covered for other losses like loss from a fire. You can usually purchase what's called "scheduled personal property coverage" which is an insurance policy extension that covers specific listed items.
Jewelry Insurance ‐ Jewelry insurance is a specific type of insurance that may cover loss due to theft as well as other damage. Premiums will vary based on use, where the jewelry is stored, the type of home you have and whether or not there is a security system. Coverage can cost as little as 1% to 2% of the jewelry's value to a bit more, depending on any number of different factors.
How to Insure Your Jewelry?
First, get your jewelry appraised by a professional jewelry appraiser. For diamonds and gemstones, it's a good idea to find an appraiser that has been certified by a gemological lab, such as the GIA, EGL, ISI or AGS. You must usually have an appraisal report in hand prior to obtaining jewelry insurance.
Second, find out what jewelry coverage is included in your existing homeowners or renter’s policy. If the coverage is inadequate, you may need to add a jewelry addendum or purchase a separate policy. Some questions you should ask your agent include:
- ♦ Do you need to have your jewelry appraised by an insurance company‐approved appraiser or can you use your own?
- ♦ Will the policy cover you for any losses when traveling?
- ♦ How will you be required to prove the loss of your jewelry?
- ♦ Does the policy only cover theft or will it also cover mysterious disappearance, damage, or loss due to a fire or other disaster?
- ♦ Will your jewelry be covered for full replacement cost? Will the insurance company send you a check, or will they require you to replace your lost piece with one that is same? Or with a similar item from a certain store?
It is recommended that you have your covered jewelry reappraised every two to four years. Notify your insurance broker/agent of any changes to make certain that your coverage continues to reflect its fair market value.