Whether you have recently gotten engaged or married, or you received a new piece of jewelry as a gift, insurance is likely the last thought on your mind. Who wants to consider paperwork when you could be on your honeymoon or showing off the latest addition to your jewelry collection? It might not be much fun to think about, but it’s essential to know how and when to insure your jewelry to avoid financial losses and inconvenience.
Why Insurance Matters
Insurance acts as protection against worst-case scenarios. For jewelry, that might mean accidental loss, theft, or damage. While insurance won’t protect the sentimental value of a piece, it can help you pay to repair or replace a piece should a problem occur.
No one wants to consider that they may lose a valuable piece of jewelry, but it can happen to anyone. It’s as simple as accidentally dropping an earring down the drain of your bathroom sink or forgetting your watch in a hotel room. In some cases, you might get the piece back. In others, you won’t. It’s best to prepare.
When To Insure Your Jewelry
The best time to purchase insurance for your jewelry is immediately after purchasing it. The second best time is now. Any time you have a valuable piece of jewelry, you should make sure that it’s covered by insurance before an accident happens.
Using Homeowners Insurance
Most insurance companies consider jewelry risky to insure because it’s valuable and easily lost or stolen. Some pieces are also fragile. Since this is the case, your homeowner’s insurance likely only offers minimal jewelry coverage.
The exact amount of your homeowner’s insurance that applies to your jewelry is defined in your policy, but it’s usually around $1,000 or $2,000. With the average cost of an engagement ring and wedding band hovering above $6,000, that’s not going to cut it even if they were the only items in your collection.
Because the coverage your homeowner’s insurance policy provides is rarely enough, purchasing a supplemental policy called a floater is a good option to ensure your jewelry is protected.
Unfortunately, a floater policy usually only covers a single item. If your jewelry collection is extensive, this could prove tedious to set up and maintain. Still, floater policies cover all types of losses, which is more than your homeowner’s insurance does.
Some items appreciate or depreciate as they age, so it’s essential to update your floater policies every few years to ensure the policy amounts are still accurate.
Steps To Take To Insure Your Jewelry
The first thing you should do when considering insurance for your jewelry is to examine the fine print of your homeowner’s insurance policy. You won’t know what additional coverage you’ll need until you’re aware of existing coverage.
When you know your starting position, you can gather information about your jewelry collection and put it all together. You should include pictures of every item, as well as receipts and certificates when possible. Have each item appraised, as this will give you a definitive idea of what your collection is worth. A professional appraisal is generally required if you want to invest in a floater policy anyway, so it’s worth doing.
Now, you can begin searching for the insurance policy that will best suit your needs and unique collection. Doing the research and putting in the effort to find a policy covering everything you need it to is worth the time and expense.
Questions To Consider Before Choosing a Policy
Insurance policies are complicated, and the slightest misunderstanding can lead to a big headache down the road. Here are some questions to consider when choosing a policy:
- How will the policy require you to prove that your jewelry has been lost or damaged?
- Will you be compensated for the full replacement cost of the item or just part of it? This is especially important if the jewelry in question was custom-made or an antique that would be difficult to replace.
- How will reimbursement work? For example, will you have to purchase a replacement before the insurance company sends you your money, or will you receive the money first?
- Does the policy you’re considering cover all types of loss and damage? If not, what are the exceptions?
- The coverage some policies offer will change depending on the current market value of the gemstones and metals your jewelry pieces are made from. Is that the case?
You should also consider the cost of the policy. Don’t settle for the first insurance company that offers most of what you’re looking for in a policy. Instead, shop around until you find one that balances the complete coverage you need with monthly payments that make sense for your budget.
Mark’s Diamonds provides appraisals with every purchased item, and we offer appraisal services for any other jewelry and watches you may need appraised.