Jewelry is often an item of great sentimental and monetary value. Whether it is an engagement ring, a family heirloom, or a luxury watch, jewelry can be expensive to replace or repair if it is lost, stolen, or damaged. Jewelry insurance can help protect your valuable possessions in the case of such unforeseen incidents. In this article, we discuss what you need to know about jewelry insurance.
What is Jewelry Insurance?
Jewelry insurance is a type of insurance policy designed to protect your jewelry from loss, theft, or damage. It covers the cost of repair or replacement in the event of unforeseen circumstances, such as loss due to house fires, theft, or natural disasters.
What Does Jewelry Insurance Cover?
Jewelry insurance covers a wide range of incidents, including:
Theft
Jewelry theft is one of the most common reasons people take out jewelry insurance. If someone breaks into your home or snatches your jewelry while you are out and about, your policy will cover the cost of replacement.
Damage
Unexpected damage to your jewelry can come in many forms. Accidents can happen, and sometimes damage can occur when the item is being worn. Jewelry insurance policies cover even the most unexpected situations, such as your diamond falling out of the engagement ring, scratching, or breaking.
Loss
Losing a piece of jewelry can have a significant emotional impact, particularly if it has sentimental value. Many insurance policies allow you to claim a replacement for lost jewelry too.
Disappearance
Though it’s less common than theft, sometimes jewelry inexplicably disappears and cannot be found. When this happens, quiet alarm bells tend to go off, as many wonder if it was inadvertently left somewhere or if one of their helpers, domestic or otherwise, made the piece "disappear." In such cases, a jewelry insurance policy might cover its replacement.
Natural disasters
Natural disasters such as earthquakes, hurricanes, or tornadoes can also warrant jewelry insurance claims. If the jewelry was stored securely and covered by a policy when the disaster occurred, the policy typically covers the cost of replacement.
What does Jewelry Insurance Not Cover?
It’s important to note that all jewelry insurance policies aren’t created equally and therefore may have specific nuances to their terms and conditions. Generally, however, there are certain elements that jewelry insurance does not cover, such as:
Negligence
Jewelry insurance policies generally won’t cover damages incurred due to straightforward neglect. For instance, an insurance claim won’t be approved if your diamond ring requires repair after you’ve deliberately led a gym routine while wearing it.
War and Terrorism
Acts of war and terrorism are typically excluded from standard insurance policies, including those for jewelry.
How Much Does Jewelry Insurance Cost?
Jewelry insurance premiums are typically computed as a percent of your jewelry’s total value, usually 1%-2% per annum. If your jewelry is worth $15,000, for instance, your policy might cost you around $150-$300 per year. Keep in mind, though, that premiums vary depending on how and where you store your jewelry as well as where you live.
How Do You Choose Jewelry Insurance?
When choosing an insurance policy, keep the following factors in mind:
Policy Coverage
Review policy particulars and ensure they cover your type of jewelry, as well as different types of damage, loss, and theft.
Insurance Company
Check reviews on jewelry-specific forums and watchdog groups to determine which providers are best for jewelry insurance.
Deductibles
Consider the deductibles, as higher deductibles tend to result in lower rates and lower deductibles result in higher premiums.
Appraisals
Have the piece appraised to get an accurate assessment of its value. Insurance providers often require appraisal documentation before issuing a policy or when processing a claim.
Added Coverage
Some carriers provide extra coverage. If the policy covers travel, for example, and should you lose your jewelry while on vacation, the policy might cover its replacement.
Conclusion
Jewelry insurance provides peace of mind, knowing that even if your jewelry is lost, stolen, or damaged, you and your prized possession are protected. When you’re ready to purchase jewelry insurance, make sure that you carefully review the particulars of the policy, choose a reputable insurance company, have the jewelry appraised and documented before buying the policy, and consider added coverage options.