Let’s walk you through a scenario: You return home after a wonderful night out with your partner to find your home has been broken into. It’s been stripped of all its valuables—including all your jewelry. Grandma’s ring, your anniversary band, a lifetime collection of necklaces, all your earrings, bracelets, and chains…years of sentiment, all down the drain. Oh and you’re not insured.
Here’s another one: You’re at the beach and lose your ring in the sand. Let’s just say the price of a diamond engagement ring is the United States average, you’re out over $6,000!
Whether you’ve left your engagement ring accidentally behind on the beach, lost a stone at the gym, or had your ring stolen, ring insurance can offer financial protection and peace of mind when you need it most.
Jewelry Insurance: How much does it cost?
Rates vary depending on where you live, but for most, jewelry insurance will cost 1-2% of the value of your jewelry. For example, a $10,000 engagement ring could cost as little as $100 per year to insure.
To put that in perspective, jewelry insurance can cost less than getting one coffee every month for a year. We think protecting your jewelry is definitely worth that!
Doesn’t my Homeowners Insurance Cover Lost or Damaged Jewelry?
When jewelry is lost or damaged because of a ‘listed peril’, such as theft or fire, it is covered by your homeowners insurance. If, for example, your home is burglarized while you’re away on vacation and thieves manage to steal a necklace that has been in your family for generations, your policy will cover part of its value–up to a maximum limit defined by your specific policy.
If a fire in your home causes damage to your jewelry collection, the damage will be covered by your insurance, but, again, only up to your coverage limits.
The best thing to do is to check your existing home owner’s or renter’s insurance policy and see your limits. Most policies cover $1,000 to $15,000 of unscheduled personal property. Some policies go higher.
Should You Get a Jewelry Protection Insurance Policy?
The actual coverage you will receive under jewelry insurance differs from insurance company to company and policy to policy. You need to familiarize yourself with the following two policies:
- Scheduled Policies – It only covers the pieces of jewelry you have specifically listed in the policy. For instance, if you have listed your diamond engagement ring, bracelet, and necklace, it will only cover them, and nothing else.
- Unscheduled Policies – It covers all items up to a specified value thus no need to list every piece of jewelry separately on the insurance policy.
In most cases, jewelry insurance covers damage, theft, or loss of jewelry. When you go buy jewelry insurance, read the contract and ask as many questions as you want before you proceed to buy it. Not all policies are alike, as in some, you will that the insurance company covers accidental damage to a diamond engagement ring.
Jewelry protection insurance is a very viable option, particularly when you want to insure high-value or at-risk jewelry such as a multi-carat diamond ring.
How to File a Claim for Lost or Damaged Jewelry
If your jewelry is stolen, the first thing you should to is contact the police and report the theft. Be sure to provide as much information as possible about the stolen jewelry and request a copy of the police report in the event your insurer asks for it.
If there is a situation where your jewelry is damaged from a source covered by whichever type of policy you own, take pictures of the damaged pieces and the source of the damage.
The next step is to contact your insurance agent. If you have separate jewelry protection insurance, you’ll need to contact the insurer of the jewelry insurance policy and not your home insurance company.
When you contact your insurer, you will have to give details as to what happened to your jewelry. Depending on the type of coverage you have, you may have to pay a deductible before beginning the replacement or repair process.
Your insurer may require you to use a jeweler or repair and replacement company of their choice.
5 Tips You Need to Follow to Keep Your Jewelry Safe
You need to follow these five tips to keep your jewelry safe:
- Tip #1: Declare all your jewelry by informing your insurance company about any valuable items you own. If you forget to declare a certain item, it can invalidate your insurance company or cause you to pay for it out of your own pockets. When you count the number of jewels you own and keep in your house, count twice so you do not miss out on declaring a valuable item.
- Tip #2: You do not want to throw away the receipts of your valuable items, but keep them in a safe place as proof of purchase. In the event you need to replace or repair them, you can show these receipts to your insurance company. You can even take pictures of the receipts or scan them to store them on your computer or digital device.
- Tip #3:You need to ensure the valuations of your jewelry are up to date. You need to store the certificates, certifying their valuations, in a safe place. For instance, you need to take your expensive jewels to a jewelry store to find out their latest value.
- Tip #4: You need to take pictures of all your valuable jewelry. In the event you need to repair or replace any of your jewels, you can provide your insurance company with pictures of them. By providing your insurance company with pictures, it will streamline the claim process, making it easier for you to obtain compensation.
- Tip #5: You need to keep your expensive jewelry in a safe or any cabinet that you can lock with a key. You need to keep the key in a safe place and only tell the code to a close family member. When you are not wearing your costly jewels, it is better to put them away in a safe and secure place, away from prying eyes.
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Pawson Insurance | Legal Disclaimer |
Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Statements on this website as to policies and coverages provide general information only. This information is not an offer to sell insurance.