There is a common misconception, that jewelry insurance is not necessary, as long as you have homeowners insurance. But, in the event of catastrophic loss, you would be surprised how little coverage you really have. Jewelry insurance provides coverage for high-value items, like rings, diamonds, and fine watches.
But, do you really need to get separate insurance for your valuables? Find out everything you need to know about insurance coverage for jewelry and valuables. Learn about getting an appraisal and the pitfalls to avoid in the process.
Jewelry Insurance 101: Everything You Need to Know
With the price of gold at a near all-time high, which means your valuables and jewelry are likely becoming more costly to replace. Whether – old, or new – theft, a natural disaster, or accidental loss can occur. And, unless you have jewelry insurance, you risk hazard to the equity your valuables hold.
Homeowners Insurance vs Jewelry Insurance
Most married homeowners assume that their homeowner’s insurance covers the cost of damage and loss if, for example, a home-robbery occurs. What many do not realize, is that your homeowner’s insurance, invariably, includes strict limits to how much default coverage is provided by category.
For example, jewelry and furs are commonly grouped in a policy under one category.
A 20-year old wristwatch might have increased in value over the past 2-decades – when it was bought for $12,000. Now, it is worth $35,000, but homeowners’ insurance would only cover the category maximum, which could be as low as $2500-$5,000. As you can see, that leaves a large gap in replacement coverage.
Every homeowner’s policy has coverage limitations, based on the category that an item falls under. And, nearly every homeowners and renter’s insurance policy includes clauses in the fine print to limit coverage on valuables, like jewelry.
Riders and Personal Article Policies
The solution to insuring items of value, like jewelry and other valuables, is having a rider policy coverage. A rider provision tacks-on additional coverage for specific personal articles, by amending the terms of the policy contract. A policy rider provides an endorsement to your current homeowner’s insurance provider, enabling your jewelry insurance to ‘ride’ on the back of the existing policy.
How Do I Know if I Need Insurance for My Jewelry?
Everyone needs to determine what their personal level of acceptable risk is when deciding which jewelry items to insure. Some might start at $500 whereas another family may only buy jewelry insurance for items above the $5,000 threshold. So, how do you go about determining the value of jewelry?
Jewelry insurance is necessary if the value of your jewelry exceeds the coverage threshold on your homeowners or renters’ insurance policy – but more on that later. Maybe you don’t have the first clue as to the value of your piece. An insurance appraisal serves to inform you as to the nature of your jewelry, if it warrants insurance at all, and how much coverage is necessary.
A word of caution: The United States has no State or Federal licensing requirements to be a jewelry appraiser. And, in an industry that deals in precious stones and valuables, you must be scrupulous to avoid bad-actors or ignorant parties. Unlike real estate appraisers – it is up to you to find an appraiser that is reputable.
Watches, gems, diamonds, and other valuables have fluid value. Since the value of jewelry is variable, it is important to have an appraisal done every few years. Otherwise, you might be paying for a jewelry insurance plan with too much – or not enough – coverage. If your piece of jewelry is over $5,000 in value at the time of your appraisal, we recommend getting it evaluated at a minimum of every 5 years.
An inaccurate appraisal on a piece you mean to insure results in coverage that reflects a false value. If the real-world replacement price (what you might find or negotiate to pay at a retail store) is less than what you have the item listed for, the insurance company will many times only payout that amount regardless of what insurance limit you've been paying for. In this case, you would have been paying too much for insurance. If you have many jewelry items over-insured, you could be annually spending hundreds of dollars too much.
If you have need of an independent jewelry appraisal then let the team at Impress Jewelers assist you. We have the facility, equipment, and expertise to provide a trustworthy and accurate appraisal that you can rely on when shopping for your jewelry insurance coverage options. And of course, you need to discuss all these options with your insurance agent. They are in the unique position of being able to provide an explanation of your policy nuances.
Need a reputable and accurate jewelry appraisal or valuation to use when shopping for jewelry insurance? Stop into Impress Jewelry Creations, today, to get your appraisal. And, get help finding the right jewelry insurance coverage policy.