If you’ve ever felt that heart-stopping moment when you reach for your wedding ring, earring, watch, or another precious piece only to find that it’s missing from its usual spot, you’ve likely considered getting a jewelry insurance policy. Jewelry insurance is available to anyone, and a good plan will cover the full value of your jewelry in cases of damage, loss, theft, or mysterious disappearance.
In this article, we’ll break down everything you need to know about getting jewelry insurance so that you’re in the know about the options for protecting your most sentimental treasures.
When to get jewelry insurance
While you can insure any piece of jewelry, the question of whether to get jewelry insurance usually hinges on the replacement value of your item. Fine jewelry designed with precious metals and precious stones is often expensive to replace, making them ideal for jewelry insurance.
Consider getting jewelry insurance if your pieces have a high replacement value, such as jewelry made of:
· Sterling silver
· Some semi-precious stones, such as black opals
· Precious gemstones, such as pearls
In the next section, we’ll outline the different types of jewelry insurance policies to consider.
How jewelry insurance works Jewelry insurance is much like any other insurance policy, including homeowners’, auto, pet, and others. First, you’ll purchase coverage, and then you’ll pay a monthly premium to retain the policy. If you need to file a claim, the insurance company will walk you through settling the claim according to the terms in your policy.
There are two primary types of jewelry insurance policies:
1. Repair and replacement policy – This type of jewelry insurance policy is the most common. It usually covers the full cost of working with a jeweler to repair or replace your piece so that it’s as close to the original as possible. Check your policy to determine whether it requires that you use a specified jeweler. If not, you’ll have the freedom to work with a jeweler of your choice.
2. Reimbursement policy – This type of jewelry insurance policy is a little more complicated because the reimbursement value will depend on whether your insurance company values your compensation using actual cash value (ACV) or replacement cost. Asking about the reimbursement valuation when you purchase coverage can help ensure there are no surprises if you need to file a claim. When you purchase a piece of fine jewelry, ask a graduate gemologist or reputable jeweler to provide an appraisal, including the details about the item and its replacement costs. Your insurance company will require this information to start a policy or when you file a claim.
Where to get jewelry insurance
Most insurance companies offer jewelry insurance coverage, so your first step might be to check with your insurance agent about insuring your valuable pieces. If you don’t have an insurance agent or want to compare policies, consider an insurer specializing in jewelry, such as Jewelers Mutual, a highly respected and reputable company.