Your jewellery is more than just an accessory – it is an investment and a precious item imbued with emotional sentiment. That is why it is so important to ensure that your most valuable jewellery is protected.
Whether it is your diamond engagement ring, your grandfather’s vintage Rolex or your collection of pearl necklaces, it is crucial to keep them insured. You may have homeowners’ insurance, but what many people don’t realize is that every item in your home isn’t always covered by this type of insurance.
In fact, there are some types of homeowners’ insurance that exclude jewellery and other valuable items, such as furs and artworks. This can mean your coverage is inadequate, especially if your jewellery items have appreciated in value since you purchased them. That is why jewellery insurance exists – to make sure that you can have your jewellery fixed or replaced if something happens to it.
CONSIDER THE VALUE OF THE JEWELRY
Should your jewellery be insured? Consider what it is worth to you. Something can be financially valuable and would be very expensive to replace, so it makes sense to protect it with insurance. However, a piece of jewellery can also be emotionally valuable, such as a wedding ring that has been passed down through several generations of your family. Insuring these sentimental items will make sure that you can have them repaired if something happens to them.
HOW JEWELLERY INSURANCE WORKS
Jewellery insurance is not too different than any other type of insurance you might have; it is simply designed specifically for your jewellery. To get the right coverage, you need to have your jewellery appraised so that you are aware of the correct value of it.
When you choose a jewellery insurance policy, make sure you understand precisely what the coverage includes. Then, you need to think about the deductible. The larger the deductible, the lower your premium – but that means you must cover more of the cost if you ever need to make a claim on the policy.
Sometimes, if you make a claim for jewellery repair, the insurer will allow you to choose the jeweler, but in other cases, you need to select from their list of jewelers. Figure this out beforehand, as sometimes the jewelers specified by insurance companies are the cheapest but not necessarily the best.
WHAT DOES IT COVER?
Your jewellery insurance policy should provide you with comprehensive coverage in the event of loss, theft and accidental damage. If your coverage is very good, it also includes an unexplained loss – when your jewellery simply disappears, and you don’t know what happened to it.
Each policy is different, so make sure you find out what yours covers. For example, if you lost your wedding ring, would the insurer create an exact replica, or would they simply provide you with a ring of comparable value?
GETTING YOUR JEWELLERY APPRAISED
Before you insure your jewellery, it needs to be appraised by a professionally trained expert. The expert will estimate the current retail value and what it would cost to replace the jewellery if lost, broken or stolen. The appraisal also includes a detailed description of the jewellery itself.
You don’t always have to pay for the appraisal – sometimes it is offered as part of the price when you buy a new piece of jewellery. However, if you insure an old family heirloom, you may have to pay for it to be appraised. Also, it is a good idea to consider getting your jewellery appraised every few years, because the value of gemstones can change over time, due to several factors, including inflation. If the value of your jewellery changes significantly, you may need to change your insurance policy.
When choosing someone to appraise your jewellery before you have it insured, make sure the appraiser is a professionally trained jewellery expert. Check to see if he/she is qualified as an appraiser and has the correct training.
Take your time when choosing jewellery insurance – something so valuable should be protected with the right policy that really meets your needs.