5 REASONS WHY YOU NEED JEWELRY INSURANCE
Key Takeaways:
- Jewelry insurance helps to protect your most precious jewelry items in the event of a major disaster or theft.
- Premiums are based on the jewelry’s value, and a recent appraisal is recommended to get the best quotes and coverage.
- Most jewelry insurance policies cover a portion of the cost of your jewelry in the event of a fire, theft, loss, or accidental damage.
Why Jewelry Insurance Matters
If you own fine jewelry in the city of Brea, CA, or the surrounding areas, it’s important to take proper precautions to protect yourself and your assets. Having jewelry insurance can be a lifesaver when it comes to catastrophes like fires, floods, or theft, especially if those items aren’t covered under your homeowner’s or renter’s insurance. In many cases, certain pieces of jewelry are particularly sentimental, a symbol of eternal love, or they may be items that are passed down through generations. The experts at Jeweler’s Touch have some helpful tips explaining why you should insure your jewelry.
What Does Jewelry Insurance Cover?
Before you purchase this type of insurance, it’s important to know how jewelry insurance works. Although it can’t fully replace specific pieces, like heirlooms, antiques, or custom jewelry, it will at least cover a portion of the monetary value. In terms of premiums, the most common breakdown is that you’ll pay approximately one to two dollars for every $100 that your jewelry is worth. Insurance for diamonds and engagement ring insurance usually costs around one to two percent of the total value and should be obtained through a special jewelry insurance provider.
To get the most accurate quote for premiums and coverage, you should have a fairly recent and accurate jewelry appraisal on hand. As for how much you’ll be reimbursed once you file a claim, the amount depends on the scope of coverage you have, the details of your policy, and the source of the insurance (whether it’s through homeowner’s insurance, a separate policy, etc.). Here are some examples of what jewelry insurance covers.
- Theft: Jewelry insurance should reimburse you if your jewelry is stolen from your vehicle, home, or another location.
- Accidental damage: Some policies may cover physical damage, such as a stone falling out of your favorite ring, earrings, or necklace.
- Loss: You may be reimbursed if you lose a valuable jewelry item while traveling, swimming, or exercising, depending on the coverage details listed in your policy.
- Fires: Jewelry insurance should compensate you if your jewelry is lost or damaged as a result of a house fire, but most standard policies exclude natural disasters like floods or earthquakes.
5 Reasons to Insure Your Jewelry
After appraising your jewelry for insurance, you can begin to shop for coverage. Now that you know more about how jewelry insurance works and what it includes, here are five reasons to insure your precious jewelry.
1. You’ll get peace of mind
Knowing that your most precious jewelry is insured reduces stress and gives you peace of mind. Having this confidence alone should make jewelry insurance a wise, valuable investment. Whether your jewelry features rare gemstones, it’s a piece you wore at your wedding, or it’s something sentimental your great-grandmother gave you, insurance helps you rest easy.
2. It covers damage and repairs
Jewelry insurance does more than just cover your precious pieces in the case of fire or theft. Whenever you wear your jewelry, wear and tear and possible damage are inevitable. Fortunately, most jewelry insurance plans also cover damage and repairs. For example, if a prong is bent and a gemstone falls out, your policy should replace it or fix the damaged jewelry for a fraction of the cost.
3. Accidents happen
Jewelry is already delicate by nature, so it’s easy to lose tiny stones, clasps, and other parts and pieces. Check to confirm that your jewelry insurance policy covers lost components, so you can easily get a replacement and restore your jewelry to its original condition.
4. Thievery
Unfortunately, theft and burglaries are a fact of life, and jewelry is often the most frequently stolen item. If you’re ever robbed or your home is burglarized, your jewelry insurance policy helps you rest easy knowing that your favorite treasures are covered.
5.It’s surprisingly affordable
For most people, jewelry insurance is an extremely affordable investment. The majority of policies cost anywhere from one to two percent of the value of each item, which means your meager investment saves you the headache and pain of doling out the full amount to replace any items that were stolen, lost, or damaged.
How to Get Jewelry Insurance
There are a few ways to obtain jewelry insurance. The most common way is automatic coverage through your homeowner’s insurance policy. If you rent rather than own your home, you may be able to obtain jewelry insurance through your renter’s insurance company. You can also contact an independent insurance company that specializes specifically in jewelry insurance.
Most people choose to buy additional insurance through their homeowner’s policy simply because it is convenient. But you should carefully read through your policy to confirm the type and limits of coverage it provides. You may not be eligible for full coverage, depending on the type of policy you have, but you’ll still be happy that you had some coverage rather than none at all. Always vet jewelry insurance companies carefully to confirm that they will honor their policies.
Why a Professional Appraisal Is Essential
Before you buy jewelry insurance, it’s extremely important to get a professional appraisal. It’s recommended that you get your jewelry reappraised every three to five years. To get the most accurate jewelry appraisals possible, bring any documentation you might have for your jewelry, like receipts, diamond certificates, diamond reports, or previous appraisals.
Schedule Your Jewelry Appraisal Today
Jeweler's Touch has a GIA Gemologist and diamond expert on-site, happy to perform an appraisal of your unique, custom, and fine jewelry required by most insurance companies. We sell, repair, and appraise all types of fine jewelry, including diamonds and engagement rings. To schedule your appraisal or to learn more about our professional appraisal process, contact us today.
Frequently Asked Questions
Do I need an appraisal to get jewelry insurance?
You don’t need an appraisal if you already have basic jewelry insurance as part of your homeowner’s or renter’s policy, and the jewelry is of low value. However, appraisals are required to cover luxury and high-end jewelry, and they’re also recommended if you don’t have the receipt.
Can I insure antique or inherited jewelry?
Yes, you can insure antique and inherited jewelry, but you’ll need a professional appraisal. You will also need to contact your insurance company to notify them of the jewelry so they can increase your coverage limits.
How do I file a claim for lost or stolen jewelry?
If your jewelry was stolen, file a police report, then contact your insurance company right away to report the theft and file a claim. For lost jewelry, simply contact the insurance company and inform them of the approximate date, time, and location at which you believe the jewelry was lost.