Why is Jewelry Insurance Important?

Posted on Thursday, August 8th, 2019 at 2:38 pm by Ad

To insure or not to insure, that is the question. Insuring your jewelry may seem like a no-brainer to some, but is it really necessary? With all of the other forms of insurance clogging up your life, buying jewelry insurance may not be high on your list of priorities. Then again, when you consider that you can’t easily replace a set of diamond earrings handed down to you by your grandmother, it begins to make more sense. The sentimental value alone is priceless.

In the event that your most treasured valuables turn up lost, or even worse, stolen, you can sleep more soundly knowing that you have protections in place to recoup a portion of the monetary value. There are a variety of factors to consider before purchasing jewelry insurance.

Choosing the Best Jewelry Insurance Plan

When exploring your options, you’ll likely come across some jewelry insurance policies that simply aren’t worth your time or monthly payments. Try to find a jewelry insurance company that offers comprehensive coverage. At the bare minimum, you should be covered for accidental damage, loss and theft. Beyond that, an even sweeter stipulation that you should try to seek out is ‘disappearance coverage’, or unexplained loss coverage. When it comes to getting your jewelry insured it is best to shop around. Compare companies, costs and coverage plans, while also making sure to read customer reviews. Usually, past clients can attest to whether the jewelry insurance company honors their policies.

Difference Between Replacement and Reimbursement

So, you’ve decided to make the move and invest in jewelry insurance for your high-value keepsakes. Now the question becomes, what does your insurer define as ‘replacement’ and/or ‘reimbursement’ coverage. According to the Insurance Information Institute, “Replacement cost pays the dollar amount needed to replace damaged personal property without deducting for depreciation, but limited by the maximum dollar amount shown on the declarations page of the policy." Since most items depreciate over time, it may be advantageous for you to choose a jewelry insurance policy that offers ‘replacement’ coverage, rather than just receiving a check for the value of the item at the time it was lost or stolen.

Do Any of Your Existing Insurance Policies Cover Jewelry?

You may have a nominal amount of coverage under your homeowner’s or renter’s insurance policy. It is wise to check with your insurer to see what your coverage limit is. You may be surprised that it is fairly low, especially when you consider the cost of replacing quality diamonds or custom jewelry. If your insurance is capped at $15,000, then it may be wise to buy added jewelry insurance to be certain you are adequately covered.

Jeweler's Touch has six expert jewelers on staff at all times. Our highly experienced gemologists specialize in custom jewelry, engagement rings and wedding bands. Start new traditions and come visit us today, or call: 714.579.1616

Things You’ll Most Likely Need to Properly Insure Your Jewelry  

  1. The Original Receipt. If you, or a loved one, was the original purchaser of the jewelry in question, you may still have a receipt. This is the best case scenario, but in some instances can prove to be impossible. If your jewelry is an heirloom or a gift, you may have to rely on other forms of verification. Worry not, there are some backup plans. 
  2. An Appraisal. A good appraisal goes a long way, especially when it comes to expensive jewelry. Rule of thumb suggests that you should get a second appraisal. Often times jewelry insurance companies won’t accept an appraisal that was issued at the time of purchase. Make sure to find a certified and licensed appraiser, and find out ahead of time what their requirements and compensation will be.
  3. Certificates. It is not uncommon to have your jewelry certified, especially if you purchased or inherited larger gemstones or diamonds. These precious stones are often certified by reputable industry leaders. The two most notable are the GIA and the EGL
  4. Pictures. Always take pictures of your high-ticket items, whether it be your diamond engagement ring or your expensive electronics. You’d be surprised how many insurance companies rely on pictures and video to assess the worth of your claim. Pictures also come in handy if you have to get the authorities involved.

No matter whether you decide to insure your jewelry or tempt fate, you should always keep your valuables in a safe place. Periodically check on your jewelry for signs of oxidation and wear and tear. Keep records of all your prized pieces, with pictures, receipts, appraisals and certificates. Remember, jewelry is a precious token of esteem. Jeweler's Touch offers industry recognized appraisals for those that want to understand the true value of their pieces. Jeweler's Touch welcomes you to the family.

Jeweler's Touch has six expert jewelers on staff at all times. Our highly experienced gemologists specialize in custom jewelry, engagement rings and wedding bands. Start new traditions and come visit us today, or call: 714.579.1616



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