Whether it’s a hand-me-down ruby necklace from your grandmother or a brilliant diamond ring you treated yourself to, each piece of jewellery holds special meaning. Imagine how disheartening it would be if you lost your jewellery or damaged it beyond repair. That’s why you need jewellery insurance – it protects your jewellery against accidental loss, theft and damage.
Read on to learn everything you need to know about how to insure jewellery.
What is Jewellery Insurance?
To begin with, you need to understand what jewellery insurance is and how to insure wedding rings and other valuable jewellery pieces in your possession.
Jewellery insurance will compensate you to replace or repair insured jewellery items if they’re lost, damaged or stolen. The coverage policies can vary depending on the insurance company you choose.
Do You Need Jewellery Insurance?
Generally, insurance for homeowners, renters or condos provides some jewellery 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 jewellery while you’re wearing it out and about, you’re unlikely to get compensated if something happens to it. Additionally, not all policies cover jewellery unless you’ve defined it as a high-value item (this will increase your premium).
Hence, the best way to insure jewellery is by getting jewellery insurance coverage. It allows you to wear your jewellery freely, without constantly having to worry about it.
What Does Fine Jewellery Insurance Cover?
Jewellery insurance covers all the jewellery pieces you want to insure, including engagement rings for women. It covers the cost of repairing or replacing your jewellery in case of accidental loss, theft and damage, irrespective of whether these incidents occur at home or when you’re outdoors. The best jewellery insurance also covers your jewellery when you’re traveling with it.
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How Does Jewellery Insurance Coverage Work?
Jewellery insurance works the same way as any other insurance. After you pay the premiums, you’ll be compensated if or when your jewellery is lost, stolen or damaged. But the policies can differ from company to company. Hence, you need to understand the specifics of what the jewellery cover insures. Some of the questions you can ask the insurance company are:
- Does the policy cover damaged or lost jewellery?
- Does the policy cover the jewellery I receive or gift someone?
- Does the policy cover my jewellery when I travel?
- Do I get the cash value of the jewellery I lose, or does it pay a jeweller to have it replaced?
- Do I get to choose my own jeweller for repairs or replacements?
- For custom jewellery, does the policy pay for a new piece, or am I required to accept something comparable?
How Much Does Jewellery Insurance Cost?
Wondering how much is jewellery insurance? Jewellery insurance costs around 1 to 3 percent of the jewellery value. However, this can vary depending on:
- Your location.
- The piece(s) of jewellery 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 jewellery 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 jewellery at a mutually agreed amount and the insurer will pay the exact amount if or when claimed.
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How To Insure Jewellery
If you’re looking for the best way to insure jewellery, here are a few tips to guide you:
- Find the right jewellery 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 jewellery is insured.
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How to Make an Insurance Claim on Lost jewellery
Learn how to submit a jewellery 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 jewellery 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 jewellery insurance at your disposal, you can now wear and flaunt your jewellery worry-free.
Looking to expand your jewellery collection? Cheque out these must-have jewellery pieces now.
FAQs
1. What does jewellery insurance cover?
Jewellery insurance covers your jewellery in the unlikely event of accidental loss, theft or damage. Some policies also cover jewellery against fire, flood, earthquake and lightning.
2. Is my jewellery covered if it’s lost at home?
Yes. Jewellery insurance covers jewellery lost within the home.
3. Does jewellery insurance cover repairs?
Yes. Jewellery 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 jewellery insurance cost?
Jewellery insurance costs 1% or 2% of the total value of the jewellery you want to insure. For example, you’ll be paying $100 to $200 every year for jewellery valued at $10,000. However, the price can vary on different factors like your location, the deductible, etc.
5. What happens if my jewellery is stolen?
If your jewellery is stolen, your jewellery 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.
