Buying Insurance For Jewelry
The effects of having your jewelry or other prized possessions lost, damaged, or stolen are devastating. You can soften the blow of this potential disaster by investing in an insurance plan.
What about home insurance?
Homeowner’s and renter’s insurance policies generally include property coverage up to a certain amount. These policies are really intended to cover your home, not the objects in it, which is why they won’t cover everything. They will often have value limits for repairs and replacements (for example, $1000 for personal objects). Check your policy to see how much personal property coverage you’ll receive.
Get appraisals first.
Coverage will be based on the true value, NOT what you paid for it. Even if you think you know the value of your engagement ring or your great aunt’s necklace, get an appraisal. You’ll be charged either a flat rate or an hourly fee, ranging from $50 to $150 depending on the nature of the piece you need to be appraised. It’ll be worth it if you discover that the diamond necklace you thought was worth a couple thousand is actually worth upwards of 10,000 – you’ll want more coverage for that. It’ll be even more worth it if you discover that a piece you thought was worth thousands is actually a knock-off that you shouldn’t bother insuring.
Some insurers will recommend that you have your items reappraised every few years so that they can be adjusted based on current market value – for example, if the market value of a diamond happens to drop drastically, you won’t need as much coverage.
You can get an appraisal from anyone near you, just make sure that your appraiser is accredited so that your insurance carrier will accept it.
Private insurance costs
If you do make the choice to buy a separate policy for your jewelry or other valuables, the cost is worth the risk. If you have a $10,000 engagement ring to insure, you’ll pay about a dollar for every $100 of the item’s worth each year – so, about $100 per year to insure your ring. If you have the money for it, it’s a great investment. That way, if you lose your ring on your honeymoon, you can have it replaced completely just thanks to your $100 yearly payments.