Do you insure jewelry? Do you need jewelry insurance? How do you protect jewelry?
Maybe your grandmother gave you her heirloom wedding ring as a wedding present. You wear it all the time and if you’re not wearing it, you have it stashed in a jewelry box.
Your Aunt gave you several cherished pieces of family jewelry in her will. Your husband bought you a new diamond ring for your 10th anniversary.
What happens if you lose these in a house fire or they are stolen from your bedroom? What happens if something disappears during a party? Will your homeowner’s insurance cover these pieces?
Table of Contents
Why it's important to insure your jewelry.
Jewelry is very personal. Jewelry represents special moments and significant milestones in your life. Jewelry can be very emotional. When lost or stolen It can be devastating. A jewelry insurance policy is the best way to make sure your memories are protected.
A standard homeowners policy includes coverage for jewelry and other precious items such as watches, furs, portable electronics like laptops, and hobbyist camera equipment or valuable sporting equipment like golf clubs. These items are covered for losses caused by a typical home insurance policy such as fire, windstorm, and theft.
However, there are special limits of liability for certain valuable items, such as the theft of jewelry. Usually, these limits are $1,500 and can be increased (for theft) at a small charge. You would still need to meet your insurance deductible. Most home insurance policies today have high 1% deductibles.
If you have a claim on your homeowner’s insurance policy, will you lose your “Claim Free” discount?
Brief overview of the different types of jewelry insurance policies available.
When it comes to insuring your jewelry, there are a variety of policy types to choose from. These include stand-alone policies, which offer independent coverage or add-on riders to existing policies, and endorsements that expand coverage. It’s important to understand the benefits and drawbacks of each option to make an informed decision about which type of policy is right for your needs.
Stand-alone Jewelry Insurance Policies.
What if you could buy something to protect your valuables and the memories they represent? Consider a very affordable jewelry policy for these cherished items. The Insurance Information Institute recommends a Jewelry Floater, a big insurance geek term. Think of it this way, buy a policy just for these valuable articles and give yourself even better protection than your home insurance or renters insurance policy can provide.
Stand-alone jewelry insurance policies are a popular choice for those who want comprehensive coverage for their jewelry. With a stand-alone policy, you can insure your jewelry independently of any other insurance policies you may have. This can be beneficial if you have high-value jewelry that may not be fully covered by a standard homeowners or renters insurance policy.
Advantages of a stand-alone jewelry insurance policy.
A stand-alone insurance policy for your valuables does several important things for you.
It gives you better protection, “open peril coverage” unless specifically excluded. Wear and tear is specifically excluded.
- If you have a loss, there is usually no deductible.
- If you have a loss, it does not affect your home insurance claim free discount.
- You can insure your valuables for exactly what they are worth.
- It is usually very affordable for peace of mind.
A separate policy for your jewelry and other valuables, gives you more comprehensive coverage. Instead of listing a handful of things that can be insured, the jewelry policy throws in everything (open peril coverage) except for the few things they exclude.
This covers most types of losses. Some coverage allows you to have the item repaired or replaced.
Unexplained loss or mysterious disappearance is one of the biggest advantages.
A diamond falls out of your wedding ring. Remember that party story? What if you have a party with 50 of your not-so-close friends and a piece of valuable jewelry comes up missing?
Drawbacks of stand-alone policies.
There are some drawbacks. For one, these policies usually are more expensive than other types of jewelry insurance. Additionally, some stand-alone policies may have more stringent coverage requirements. Despite these drawbacks, however, stand-alone policies may still be the best choice for those with very valuable or unique jewelry that requires specialized coverage.
How expensive is a separate jewelry policy?
As a result, the price will depend on where you live and vary by the types of items you cover. Jewelry cost more to insure than a hobbyist camera or an expensive laptop you use. Typically, jewelry will cost roughly 1-2% of the value of your jewelry. That $10,000 heirloom wedding ring Aunt Ruby gave you might cost as little as $100 per year to insure.
Do you really need to buy a separate jewelry policy?
Only you can answer this question. But ask yourself:
If my valuable heirloom ring, or my wedding ring disappeared today …
- Would I feel devastated about the sentimental loss?
- Would I be worried about losing my other uninsured jewelry?
- Would I be able to buy a new item just like it to replace the one I lost?
If you answered “yes” to one or more of these questions, you’re an excellent fit.
Get A Free Quote Now. Let Us Show You How Affordable Jewelry Insurance Can Be. We offer amazing customer service. If you need to file a claim, we will be there.
Moreover, what you insure can affect what Jewelry Insurance costs. We can help you find the right jewelry coverage from the best insurance companies. No piece of Jewelry is not worth considering for coverage.
How to protect your jewelry:
- If you insure it, make sure it is insured for the right amount.
- Keep a copy of the receipt from where you bought it.
- If you do not have a recent receipt, have the item appraised.
- Pictures are worth 1,000 words, take pictures.
- Store jewelry you’re not using regularly in a secure place such as a safe-deposit box, or fireproof safe.
- If you travel, take limited jewelry with you. For example, take only what you intend to wear all the time.
- Do not leave your valuables in your luggage while traveling, always keep them with you.
- If you are in a hotel, cruise ship, or place that has a safe, use it when you’re not wearing your jewelry.
- Take your jewelry to a jeweler and have it inspected often for loose stones.
Can you insure other items besides jewelry and watches?
Yes, it is very common to insure not only jewelry but hobbyist equipment like expensive cameras and lenses. Want to know more? Look at this brochure by Travelers Insurance and contact us to help you place this important coverage.
Conclusion:
When it comes to insuring your jewelry, it’s important to carefully consider all your options and choose the coverage that’s right for your specific needs. Stand-alone policies, add-on riders, and endorsements all offer different levels of coverage and come with their own benefits and drawbacks. In conclusion, by taking steps to keep your jewelry safe and well-maintained, you can minimize the risk of loss or damage and help ensure that your investment is protected for years to come.
Your agent can help you evaluate your insurance needs. Carter’s Insurance offers choices. Ultimately there are pros and con’s to consider. We can help you navigate those decisions.
Thank you for visiting our blog.
Written by Eddie Carter, Managing Partner
Carter’s Insurance Agency
Published February 22, 2023
