It can be emotionally and financially distressing to lose a special piece of jewelry, but jewelry insurance may assist you in recovering it or even paying for repairs. There are various ways to get coverage for jewelry. Generally, valuables are covered by homeowners’ and renters’ insurance even when they are not in the house, but most have a $1,500 or $2,000 cap.
For an item covered by your home insurance, you could purchase a floater or a separate policy. However, doing so could raise your rates and not cover every eventuality. In addition to offering more coverage, this insurance type may also have a lower or no deductible.
What is Jewelry Insurance?
Jewelry insurance is a form of property insurance that exclusively protects jewelry such as rings, necklaces, watches, earrings, and gemstones. Furthermore, the insurance company also covers the cost of replacing or repairing your insured jewelry if it is stolen, lost, or damaged.
How Jewelry Insurance Works
Jewelry insurance functions similarly to other kinds of coverage. If your jewelry is lost, stolen, or destroyed, the provider will pay your claims, less your deductible. You pay the premiums. However, the specifics of your insurance will determine how that situation turns out.
To prevent unexpected expenses, you should comprehend what covers you and how your insurer will reimburse you. Moreover, many will claim to cover the repair or replacement of lost or stolen jewelry, but ensure you get details regarding the money you receive. Consult the company:
- Will my jewelry be covered by the policy if I misplace or break it?
- If I give or receive jewelry as a gift, will the coverage cover it?
- When I travel, does my coverage change?
- If I lose anything valuable, will my insurance replace it with a jeweler’s fee, or will it just give me the cash value?
- Can I select the jeweler I want to use for replacement or repair?
- Will my coverage cover the cost of a replacement piece if I possess unique jewelry, or will I have to settle for something “comparable”?
Coverage Offered for Jewelry Insurance
It’s important to have some jewelry coverage under renters, homeowners, or condo coverage, and you may be able to get more if necessary. Here is how jewelry coverage works:
Personal property coverage
Under the personal property of your policy, jewelry is covered by standard homeowners, renters, and condo policies (along with other possessions like clothes and furniture). Additionally, these plans protect your belongings against things like fire and theft.
However, they won’t cover issues that aren’t covered by the policy, such as a wedding band that falls into a heating vent or manufacturer faults. They also typically won’t cover damages resulting from earthquakes or floods.
Moreover, relying on your homeowners or renters insurance to protect your jewels has several disadvantages. First, the amount that the provider will pay for jewelry that has been stolen is frequently capped at $1,500. Your coverage might be insufficient if the value of your jewelry exceeds that amount.
Second, if a claim is paid, the insurance will deduct your deductible. That means your insurance provider will only pay $500 if your $1,500 bracelet is stolen and your homeowners’ insurance deductible is $1,000. Lastly, submitting a claim for a lost or stolen piece of jewelry may result in increased policy costs.
Blanket coverage
The maximum amount your policy will pay for a specific kind of precious item, like jewelry, is increased with blanket coverage. For instance, adding blanket coverage may increase the $1,500 maximum for stolen valuables under the standard insurance to $5,000 or higher. Moreover, limits may also be applied per item.
Additionally, it may increase the scope of what your coverage covers in the event of misplaced or lost jewelry, depending on the insurer. Furthermore, certain providers offer full coverage with no out-of-pocket expenses.
Scheduled personal property coverage
A piece of jewelry that you schedule is covered by insurance specifically for that item. For example, you might own only your $5,000 engagement ring as pricey jewelry. However, you can simply insure the ring rather than purchasing blanket coverage for a collection you do not own.
Scheduled personal property insurance may cover things like losing a ring down the sink or misplacing a bracelet while abroad, unlike a typical homeowners or renters policy. Moreover, there is no deductible. To purchase this coverage, you might have to submit an appraisal with a qualified evaluation of the item’s value.
Types of Jewelry Insurance
There are two primary methods to obtain jewelry coverage that go beyond what is included in a standard home [policy. This includes
Add a floater to home coverage
You can protect valuables beyond the limits of a home insurance policy by using a floater. Your personal property, like jewelry, can be insured for its full value, including theft, by “scheduling” it. To schedule jewelry, get in touch with your current home insurance provider. Furthermore, another term for this is an endorsement.
Purchase separate jewelry insurance
The most complete security for your property is offered by specialty jewelry coverage. In addition to covering mysterious disappearances, separate jewelry insurance policies allow you to insure your item for its entire worth.
Generally, this implies that you have no idea how or when the item vanished, which is a provision that home insurance does not provide. Furthermore, your home insurance premiums won’t be impacted if you need to file a claim on a separate jewelry policy. A home insurance policy’s rates may increase upon renewal if there are claims.
How Much Does Jewelry Insurance Cost?
The cost of separate jewelry insurance policies is between 1% and 2% of the item’s value. Moreover, a policy’s cost may change depending on the following factors:
- Where you are
- The quantity of items you are covering as well as each one’s specific worth
- The deduction
- If the real value or replacement value is reimbursed by the insurance
Occasionally, there might be a third choice. Some providers offer agreed-value insurance, which implies the provider will cover the amount specified in the policy.
You can receive a jewelry coverage discount by:
- Putting in place a home security system
- Keeping the jewelry in a bank deposit box or house safe
- Registering the jewelry with a third-party company, such as Forevermark or Gemprint
Additionally, jewelry insurance rates are available online or over the phone. As soon as you receive an estimate and make a payment, your coverage might start. Furthermore, to obtain coverage, you might have to provide an appraisal or thorough receipts.
Why Should I Get Jewelry Insurance?
Regardless of how many vintage watches you own, how beautiful a piece of jewelry you own, or your collection of valuables, securing jewelry insurance is the right choice. In addition, it also provides you peace of mind because you’ll be able to replace or repair it in the event of a covered occurrence.
How to Apply for Jewelry Insurance
Numerous jewelry insurance providers provide online quotations, but sometimes you have to give them a call to acquire a quote. When the cost and extent of coverage meet your needs, you will apply and cover the necessary amount to begin coverage. Furthermore, you may be able to adjust the amount of jewelry coverage online or by calling a representative, depending on your insurer.