Jewelry Insurance: Do I need it?

While home or car insurance may be required by law, jewelry insurance is an optional addition for coverage. People with pricey wedding rings, family heirlooms, or fine jewelry may worry what would happen if their items were lost or damaged. But, is jewelry insurance really necessary? You have already invested in your jewelry items, should you invest in protection for them as well? Keep reading to learn more about jewelry insurance and how you can ensure the security of your favorite items.

Is your jewelry already covered by insurance?
For some, jewelry insurance may not be necessary if your items are covered by existing policies. Homeowners or renters insurance policies provide protection for the items in your home, which includes jewelry. It is important to carefully review your policy to determine if your jewelry is sufficiently covered.

In some cases, coverage for jewelry is limited to a certain dollar amount. If your jewelry fits within that amount, you may not need additional coverage. However, some policies do not include circumstances like loss or damage, and the dollar limit for coverage may not be enough for your items.

How much is your jewelry worth?
When considering whether or not to purchase jewelry insurance, you have to determine how much your jewelry is worth. This valuation includes both monetary and sentimental value. Keep the receipts for your fine jewelry items or have them appraised if a receipt is unavailable. These valuations will help you decide how much coverage is needed to protect your items. In some cases, your jeweler may directly recommend jewelry insurance depending on the price of your item at purchase.

It is more difficult to place a value on sentimental pieces. While you can, and should, have them appraised, they carry more emotional or familial weight. Of course, if a family heirloom or sentimental item is damaged, it can be difficult or impossible to replace. While jewelry insurance cannot assure the exact replacement of your item, it can help take the sting out of your loss.

Do you have peace of mind?
From engagement and wedding bands to stunning necklaces or bracelets, jewelry is meant to be worn. Unfortunately, many people feel it is necessary to lock their fine jewelry away in order to keep it safe. Securing your items in a jewelry box or safe may protect them from loss or damage, but it certainly doesn’t allow you to enjoy your items or display them properly.

If you want to wear your favorite pieces of jewelry with peace of mind, jewelry insurance is a worthwhile investment. You can confidently wear your items without the fear of damage, knowing they are covered.

Considerations when purchasing jewelry insurance
Once you’ve made the decision to purchase jewelry insurance, it can be difficult to know where to start your search for the right coverage. Keep the following considerations in mind when determine which coverage options are right for you.

  • Depending on your existing homeowners or renters insurance policy, you may be able to add a floater or rider to extend your coverage. These additions may help you avoid paying deductibles or purchasing a separate policy
  • The price of coverage will depend on your location. Areas that have higher rates of theft may have higher insurance costs.
    Check that your potential policy covers all possible contingencies. You want your jewelry protected from theft, accidents, or loss.
    Note the circumstances for total replacement. Some policies require replacements from a certain jeweler, or you might be able to opt for a check instead.
  • Does your insurance provider cover the current appraisal value of your item or the original purchase price? Understanding how the provider assesses the value of your item is crucial.
  • Are regular appraisals required for your policy? Even if appraisals are not required, they might be a good idea. The value of fine jewelry or precious metals can change over time, so you may have to update your coverage at some point.
  • Some insurance companies offer lower premiums if you have a home security system or another way to protect your jewelry when it is not in use. Look for possible savings opportunities when evaluating coverage options.
  • Once you have purchased coverage, maintain your insurance documents. Store all documentation in a safe and easily accessible place, including your appraisals, receipts, photos, and policy details.

BOLT Insurance can help make insuring your jewelry fast and affordable. Click here to get an online quote.