How to protect your personal jewelry with the right insurance
If you have jewelry, you know it’s worth it. If you own jewelry that has sentimental value, you know that its value cannot be named by price.
Regardless of the fact that insurance companies may not be able to help you with the priceless part of the sentimental value of jewelry, they can help you by compensating you for its market value.
The initial concern about this for all homeowners, renters, or condo owners is whether the related insurance policy they have purchased will protect them from the financial loss associated with jewelry losses.
Summary of jewelry protection in a homeowners, renters and condo policy
Whether you own a home, condo, or rent your residence, you can be sure that any standard policy covers your personal items, including jewelry. The question is how much?
Coverage depends on the limits associated with your policy. Also, your rings, bracelets, necklaces, brooches, etc., will not be covered if they are damaged from everyday wear or something like a lost stone falling out of its setting.
Naturally, though, learning about the various related policy discrepancies is in your best interest as a jewelry owner. Although there are several insurance plans that cover individual pieces of jewelry for a certain amount, there are those that cover your pieces in their entirety, for a certain amount.
It’s best to sit down with an insurance professional to help review your coverage and determine if you have adequate protection.
How much is your personal jewelry worth?
If you don’t know if you have enough insurance to cover the loss of a piece of jewelry, it’s time to evaluate your collection. Due to the fact that the value of jewelry can increase over time, it is highly recommended that you have your jewelry appraised by a professional at least once every three years. Save all proof of sale of jewelry, as well as documentation of your professional appraisals to show them to your insurance agent. This will help you work together to determine if you need any additional related coverage.
Read the following example about Sandra to understand the insurance aspects discussed.
Sandra’s set of diamond earrings was appraised at a value of $2,000. Her diamond engagement ring was appraised at a value of $7,500. The problem is that she only has related coverage for a $3,000 loss. If she does the math, Sandra could suffer a monetary loss of $6,500 if her earrings and her ring are stolen at the same time.
But luckily, there is a solution for the situation.
Sandra can easily cover the insurance gap by insuring her high-value earrings and rings separately under her homeowners policy. Known as scheduled insurance or a rider to your policy, it lets the insurance company know how much each individual piece is worth. With the documented value, Sandra will be financed for the full value, in case of loss. Generally, the schedule or rider will provide broader coverage. For example, while your standard homeowners insurance won’t cover a stone loss, the add-on enhances your protection to cover it.
For a more in-depth discussion about related coverage, speak to an independent agent.