Whether it’s a hand-me-down ruby necklace from your grandmother or a brilliant diamond ring you treated yourself to, each piece of jewelry holds special meaning. Imagine how disheartening it would be if you lost your jewelry or damaged it beyond repair. That’s why you need jewelry insurance – it protects your jewelry against accidental loss, theft and damage.
Read on to learn everything you need to know about how to insure jewelry.
What is Jewelry Insurance?
To begin with, you need to understand what jewelry insurance is and how to insure wedding rings and other valuable jewelry pieces in your possession.
Jewelry insurance will compensate you to replace or repair insured jewelry items if they’re lost, damaged or stolen. The coverage policies can vary depending on the insurance company you choose.
Do You Need Jewelry Insurance?
Generally, insurance for homeowners, renters or condos provides some jewelry coverage (which falls under the personal property section). But this insurance only covers items that are in the building itself and contents that are lost in a fire or flood. If you lose your jewelry while you’re wearing it out and about, you’re unlikely to get compensated if something happens to it. Additionally, not all policies cover jewelry unless you’ve defined it as a high-value item (this will increase your premium).
Hence, the best way to insure jewelry is by getting jewelry insurance coverage. It allows you to wear your jewelry freely, without constantly having to worry about it.
What Does Fine Jewelry Insurance Cover?
Jewelry insurance covers all the jewelry pieces you want to insure, including engagement rings for women. It covers the cost of repairing or replacing your jewelry in case of accidental loss, theft and damage, irrespective of whether these incidents occur at home or when you’re outdoors. The best jewelry insurance also covers your jewelry when you’re traveling with it.
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How Does Jewelry Insurance Coverage Work?
Jewelry insurance works the same way as any other insurance. After you pay the premiums, you’ll be compensated if or when your jewelry is lost, stolen or damaged. But the policies can differ from company to company. Hence, you need to understand the specifics of what the jewelry cover insures. Some of the questions you can ask the insurance company are:
- Does the policy cover damaged or lost jewelry?
- Does the policy cover the jewelry I receive or gift someone?
- Does the policy cover my jewelry when I travel?
- Do I get the cash value of the jewelry I lose, or does it pay a jeweler to have it replaced?
- Do I get to choose my own jeweler for repairs or replacements?
- For custom jewelry, does the policy pay for a new piece, or am I required to accept something comparable?
How Much Does Jewelry Insurance Cost?
Wondering how much is jewelry insurance? Jewelry insurance costs around 1 to 3 percent of the jewelry value. However, this can vary depending on:
- Your location.
- The piece(s) of jewelry you want to get insured.
- The deductible (amount of expenses you’ll pay out of pocket before an insurer pays further expenses).
- Whether or not the policy reimburses the actual value (the cost of the jewelry minus depreciation) or replacement value (how much it costs today). In some cases, there will be a third option in which you can insure a heirloom piece or a rare piece of jewelry at a mutually agreed amount and the insurer will pay the exact amount if or when claimed.
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How To Insure Jewelry
If you’re looking for the best way to insure jewelry, here are a few tips to guide you:
- Find the right jewelry insurance company.
- Get a quote on how much it costs.
- Provide all the necessary documentation like pictures, receipts, certifications, etc.
- Carefully read through the policy and understand the details.
- Learn how to submit a claim and ask as many questions as you want to clear your doubts.
- Once you pay for the premium, your jewelry is insured.
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How to Make an Insurance Claim on Lost jewelry
Learn how to submit a jewelry insurance claim in the unlikely event you need to make one. Here are some steps you can follow:
- Immediately report the incident to the insurance company via the toll-free number provided.
- Send an email to the policyholder to alert them.
- A surveyor is appointed, the incident is thoroughly investigated and reports are filed to assess the loss and determine the amount to be compensated.
- A copy of the jewelry insurance policy must be sent to the insurance company and after an internal process, the claim will be processed.
- The insurance company provides compensation based on the policy.
With jewelry insurance at your disposal, you can now wear and flaunt your jewelry worry-free.
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FAQs
1. What does jewelry insurance cover?
Jewelry insurance covers your jewelry in the unlikely event of accidental loss, theft or damage. Some policies also cover jewelry against fire, flood, earthquake and lightning.
2. Is my jewelry covered if it’s lost at home?
Yes. Jewelry insurance covers jewelry lost within the home.
3. Does jewelry insurance cover repairs?
Yes. Jewelry insurance covers repairs in case of damage. But to understand the terms and conditions of this policy, ask your insurance company for more details.
4. How much does jewelry insurance cost?
Jewelry insurance costs 1% or 2% of the total value of the jewelry you want to insure. For example, you’ll be paying $100 to $200 every year for jewelry valued at $10,000. However, the price can vary on different factors like your location, the deductible, etc.
5. What happens if my jewelry is stolen?
If your jewelry is stolen, your jewelry insurance policy covers it and you will be compensated for it. However, ensure that you file a claim as soon as the incident occurs.
6. How do I file a claim?
You should report the incident to your insurance company right away and send a written report (email) to the policyholder alerting them of the situation.
