The 5 Most Common Questions About Jewelry Insurance
Insuring houses, cars, and loved ones are a no-brainer, but when it comes to jewelry, many tend to overlook this simple act of protection. Treasured jewelry, such as engagement rings, are often some of our most valuable possessions and are also the most susceptible to damage and loss. Many people think that jewelry insurance is only for the super-rich with rare and incredibly expensive jewelry collections. But the truth is that insuring your jewelry is a simple and inexpensive way to protect your treasured heirlooms. Read on to find much-needed answers to five of the most common questions people have about jewelry insurance.
1. Why Should I Purchase Jewelry Insurance?
Jewelry is meant to be worn and enjoyed, but constant use puts it at risk of being lost or damaged. Our rings, for example, typically come on and off throughout the day as we do things like wash our hands, clean the house, or put on lotion or hand sanitizer. Each time your ring comes off, there is a risk of it getting misplaced or lost. And don’t forget the possibility of theft! No one wants to imagine it happening to them, but jewelry is one of the most common things stolen during a break-in. Because we can’t stop all of life’s little mishaps from happening, it is smart to insure your precious pieces. Be sure to thoroughly read your policy so you know what is and isn’t covered so that you can rest easy knowing that you have the coverage you need. After all, it is always better to be safe than sorry.
2. How Much Does Jewelry Insurance Cost?
Like car and life insurance, jewelry insurance is based on a number of variables. Where you live, how much you wear your jewelry, and what kind of deductible a particular plan has all play a role in the price you will pay. Generally, you can expect jewelry insurance rates to run about 1-2% of the total value of a piece, making it surprisingly affordable.
3. What Does Jewelry Insurance Cover?
As with all types of policies, jewelry insurance offers different types of coverage depending on the plan. Most companies will give you a variety of options to choose from. Typically plans cover the basics, such as theft, damage, or loss. Some policies even cover “mysterious disappearances” and a policy that offers to replace the full cost of your jewelry often includes the cost of the sales tax on a piece.
A blanket plan will cover all your jewelry, but you will be required to have each piece appraised so the insurer knows the true value of your collection. While this is a good option, we recommend a separate policy for your engagement ring. This is likely to be the most expensive piece that you own and usually gets the most use as it is worn every day, making it the most likely piece to get lost or damaged.
4. What is A Jewelry Appraisal?
An appraisal is the process of having an expert put a value on your jewelry. Knowing the actual value is important for selecting the right coverage. It is difficult to identify a replacement cost without knowing the value of something. When it comes to expensive jewelry (such as pieces that cost $5,000 or more), most insurance companies will require it. For less expensive pieces, many insurers will accept a detailed receipt in lieu of an appraisal report. Appraisals look at every aspect of the piece such as the diamond quality and the type and weight of the metal.
Having your jewelry reappraised every few years is a smart move since inflation affects value, as does the ever-changing global value of precious metals and gemstones. At Aucoin Hart, we understand how important it is to protect your treasures so we provide this service free of charge for jewelry purchased from us. Our expert graduate gemologists also provide affordable rates for
jewelry appraisals on items purchased elsewhere.
5. How Does the Insurance Claim Process Work?
Filing an insurance claim for jewelry is easy and no different from filing any other type of insurance claim. In the event of a damaged, lost, or stolen piece of insured jewelry, simply contact your insurance company to initiate the claim. You will be assigned a claim number and asked to provide relevant documentation, such as a police report, a value appraisal, or a diamond certification card. For more information,
contact one of our expert associates at Aucoin Hart Jewelers so that we can walk you through every step of insuring your jewelry. At the end of the day, you can be free to enjoy wearing your jewelry knowing that it is protected.