Do I Need Jewelry Insurance?

Did you recently buy some new jewelry and now you’re wondering: should I buy insurance?

It depends on how much the jewelry is worth, whether you have other insurance policies (like a homeowners or renters policy) and how much risk you want to take on. Here’s what you need to know:

Jewelry is expensive, and it’s easy to lose track of exactly how much your bling is worth. If you do lose track and accidentally under-insure your jewelry, that could mean having a gap in coverage if something happens.

How do I insure my jewelry?

You can insure your jewelry through your homeowners or renters policy, but keep in mind that claims against these policies can trigger rate increases. That might not be a big deal for a small claim — after all, the worse that can happen is that your policy comes up for renewal and the company decides to raise your premiums by 10%. But if it’s a serious claim — say, if there’s a fire at your house — your insurer may decide to drop you from coverage entirely. And even if that doesn’t happen, the higher premiums can add up over time.

If you have high-value jewelry — say $5,000 or more — you can also consider buying a special “floater” policy.

What does jewelry insurance cover?

This depends on the policy, but jewelry insurance generally covers:

• Damage due to theft
• Loss of the item (including if lost at sea)
• Mysterious disappearance (if you can’t find it)
• Damage while traveling (with appropriate limits)

What is not covered by jewelry insurance?

It’s important to understand what jewelry insurance policies do not cover. Most policies will not cover normal wear and tear and will exclude damage caused by:

• Chlorine, acids and other chemicals
• Inexperienced handling of precious stones or metals, such as dropping a ring or gemstone, or leaving a piece with a gem in the sun for too long — which can cause the gemstone to crack.

How do I determine my jewelry’s value?

An appraisal can also be beneficial when it comes time to file a claim. It’s important that your policy covers the full value of your jewelry, and an updated appraisal will ensure you have enough coverage.

Most insurance companies require appraisals for items worth more than $5,000, but some will accept photos and receipts as proof of ownership.

How much does jewelry insurance cost?

The annual premium is usually somewhere between one and three percent of the total value of your jewelry that you want to cover.

For instance, for a wedding ring valued at $6,000, an annual policy could cost between $60 and $180. If you choose to insure only that ring, it will likely be closer to the bottom end of the range. If you insure several pieces (or a full jewelry wardrobe), it will likely be closer to the top end of the range.

The risk factors involved in insuring high-value items can also increase costs significantly in some situations: for instance if you live in an area with higher crime rates or natural disaster risks; if you’re concerned about loss instead of theft; or if you have a history of frequently losing things (which would make coverage more expensive since insurers would need to factor in a greater likelihood that they’d need to recoup their losses).

Jewelry is a significant investment, so it’s worth taking the time to secure proper insurance coverage. Contact us today and we will make sure that your valuable jewelry is covered!