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Should You Insure Your Fine Jewelry?

Jewelry is one of the easiest investments to be lost, stolen, or damaged. While some homeowners or renters policies provide some coverage for jewelry theft, it is by no means comprehensive. A good rule of thumb for insuring pieces of jewelry is if the replacement cost is more than $500, cover it in a separate policy.

In order to calculate your premium, most insurers will ask for appraisal values. Before calling your agent, gather each piece you want insured, take pictures of each one, attach a detailed written description, and have the pieces appraised. Provide copies of all the pertinent information, including receipts from the time of purchase, to your insurance agent. If you are shopping agencies, knowing the appraisal value of all the pieces will save time and confusion during the process.

Depending on your insurer and location, you may be able to get the best deal through the company already handling your homeowner’s insurance. Speak to your agent about whether it is better for you to treat the jewelry coverage as a rider on your current policy or as a separate entity. Laws vary by state, but there is always a minimum annual premium applicable for jewelry coverage. Make sure to ask if there is a deductible and how it affects your premium.

In addition, you will want to ask about any special circumstances or exemptions. For instance, are the items insured while traveling abroad? What if only one piece of a set is lost? Will I be given the amount of the full replacement value, or a cash settlement? Does the policy cover repairs to damaged jewelry? What are the exclusions? Make sure to know exactly how claims are settled, as they vary from state to state and company to company.

Once you have coverage, make sure to keep your policy up to date. If you buy any major pieces, don’t forget to add them to your policy. At least once a year, have your collection reappraised for replacement value at a reputable jeweler. If your collection is not up to date with your insurance agency, you may not receive the settlement you want. While shopping for insurance may be tedious, the peace of mind is well worth the effort.