What You Should Know About Jewelry Insurance
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Are you wondering if you should have your jewelry insured? If so, you probably have some questions about jewelry insurance, including when you should have your items insured, what you should get insured, and how jewelry coverage works. Here are some of the main things you should know about jewelry insurance.
You should consider having any valuable piece of jewelry insured, even if you don’t wear it often. If an item is sentimental but does not necessarily much monetary value, you do not need to insure it. However, every item that you would want to replace in the event of a loss should be insured.
If you find that your homeowner’s insurance is not sufficient, you can sometimes purchase a separate rider for your jewelry. You can also choose to find an insurance company that specializes in jewelry coverage, such as Jeweler’s Mutual.
Your jewelry insurance policy may cover you in the event of:
No one likes to think that something could happen to their treasured possessions, but we all know that things can happen. So, it’s best to be prepared and have coverage in place.
Be sure to find out what kind of compensation your insurance company is offering you. Replacement jewelry insurance is generally better than ACV policies because there is less guesswork involved. With replacement cost coverage, you should be able to re-purchase an item that is exactly like the one you lost.
When Should You Have Your Jewelry Insured?
Jewelry insurance, like all insurance, is often overlooked until it’s needed. Be proactive by protecting your treasures with insurance as early as possible. If you are newly engaged, don’t wait until after the wedding and honeymoon to this done (trust us on this one). Get coverage on your ring as soon as you can.What Jewelry Should You Have Insured?
It might seem obvious that you should have your engagement ring insured, but what about your other jewelry?You should consider having any valuable piece of jewelry insured, even if you don’t wear it often. If an item is sentimental but does not necessarily much monetary value, you do not need to insure it. However, every item that you would want to replace in the event of a loss should be insured.
Does Homeowner’s Insurance Cover Jewelry?
Many people mistakenly assume that they have their jewelry automatically covered by their homeowner’s insurance. Depending on your policy, you may have some coverage on your jewelry through homeowner’s insurance, but don’t assume so. You may only have enough coverage to cover a fraction of the replacement of your collection, and your policy may not cover all kinds of losses. It’s important to check into your individual policy to determine if you need additional coverage.If you find that your homeowner’s insurance is not sufficient, you can sometimes purchase a separate rider for your jewelry. You can also choose to find an insurance company that specializes in jewelry coverage, such as Jeweler’s Mutual.
Reasons To Have Your Jewelry Insured
There are many reasons to have your jewelry insured. Imagine that you have lost some of your most valuable possessions -- wouldn’t it be nice to at least know that you can replace them without paying for them again? Of course, insurance can’t replace the sentimentality of your jewelry, but it allows you to add new items to cherish.Your jewelry insurance policy may cover you in the event of:
- Loss
- Damage
- Theft
- Mysterious Disappearance
No one likes to think that something could happen to their treasured possessions, but we all know that things can happen. So, it’s best to be prepared and have coverage in place.
How Jewelry Insurance Reimbursement Works
There are two main ways that an insurance company will reimburse you if you make a claim on your jewelry -- actual cash value (ACV) and replacement cost. ACV pays to replace your items but takes into consideration depreciation (which is not usually applicable for jewelry), as well as wear and tear and fair market value. With replacement cost coverage, you will get the amount that it costs to replace your item, at least at the time you insured it.Be sure to find out what kind of compensation your insurance company is offering you. Replacement jewelry insurance is generally better than ACV policies because there is less guesswork involved. With replacement cost coverage, you should be able to re-purchase an item that is exactly like the one you lost.
