Jewelry Insurance – Understanding Your Options

Earlier this month, we did a blog on jewelry appraisals and the importance of understanding your jewelry’s value. One type of appraisal is used for insurance purposes to determine the replacement value or cost to replace the item with one of similar kind and quality at current retail prices. Having an up-to-date appraisal ensures your insurance coverage is adequate to cover the cost of replacement.

So what do you need to know about getting jewelry insurance? You can get jewelry insurance through your homeowners or renters insurance company or from stand alone jewelry insurers. Let’s review the details of both these options:

Homeowners or Renters Insurance:

  • Jewelry is covered un the personal property section of your policy along with other items like clothing, furniture, etc.
  • Events such as theft and fire are typically covered, but floods, earthquakes, manufacturer defects or accidents (like dropping your ring down a heat vent) are not typically covered.
  • There is typically a cap on what will be paid out for stolen jewelry which may not cover the replacement cost of the item.
  • You will have to pay your deductible before the insurance money pays.
  • Filing a claim can lead to higher policy premiums.
  • Homeowners or Renters Insurance is good option if you don’t have much jewelry or their value is less than the limit.
  • If the included coverage isn’t enough, you might consider either Blanket Coverage or buying dedicated coverage for an item through your existing policies:
    • Blanket coverage increases the limit on a type of valuable item and would be good if you have a collection of jewelry, but none are extremely valuable.
    • Dedicated coverage or “scheduling” a piece of jewelry is good if you have one or more pieces that are worth more then your policy limit.

Stand Alone Jewelry Insurance:

  • There are companies that specialize in jewelry insurance and offer more coverage than a homeowners or renters policy. You should check what coverage is included, but it may include preventative maintenance, flood and/or earthquake. Be sure to check for any events that are specifically excluded.
  • With a stand alone policy you will not impact the cost of your homeowners or renters insurance.
  • Stand alone policies are typically 1% or 2% of the item’s value per year.

Whatever your choice, having coverage in line with the value of your jewelry is important in the case of loss, damage, etc. Bridgewaters can help with appraisals of your jewelry. Stop by and see us!