Summary: If you want to protect your jewelry from being damaged, stolen, or lost, you have plenty of options. Jewelry insurance is a great way to ensure your collection has the proper coverage limits that other forms of property insurance don’t provide. You should compare different types of coverage and insurance companies to find the best option at the lowest price available. Sometimes, carriers may undergo an investigation to be sure a claim is legitimate. If you own jewelry and wish to keep your items covered, be sure to get your items appraised for the best protection regularly. Estimated Read Time: 6 mins
Table of Contents:
- How Does Jewelry Insurance Work?
- How Much Is Jewelry Insurance?
- How To Insure Jewelry
- Jewelry Appraisal for Insurance
- Jewelry Insurance Claim Investigation
- Is My Jewelry Covered Under Auto Insurance?
Protecting your valuables can be a complex endeavor. Depending on the value of your items and collection as a whole, property insurance may not cover you completely, however, jewelry insurance is available. Adding a rider can help you insure high-value items, including rings, watches, earrings, and more.
To get a jewelry insurance quote, contact us at the number above today to compare many top-rated carriers helping Texans find affordable, reliable coverage for their valuables.
How Does Jewelry Insurance Work?
Jewelry insurance is coverage to repair or replace pieces from your collection in the event you face a variety of losses. These include theft, damage, if they are misplaced, or even if you lose jewelry while traveling internationally.
It’s notable to mention that normal wear and tear isn’t covered by insurance for jewelry, nor is maintenance, intentional damage, acts of war, or pest infestations.
Filing a claim to use insurance on jewelry means contacting your carrier who will begin their process and work with your preferred jeweler to restore your losses.
In some cases, carriers may conduct an investigation to prove the claim is legitimate in an attempt to stifle fraud.
How Much Is Jewelry Insurance?
Jewelry insurance cost will differ but is generally 1% to 2% of the value of the piece you are insuring on an annual basis.
Therefore, if you have an engagement ring that is worth $7,000, your coverage will cost around $70 to $140 per year.
Just like other forms of coverage, each carrier is going to weigh a variety of personal factors when determining your premium and you will pay more or less depending on these variables.
Is Jewelry Insurance Worth It?
Deciding on adding a rider depends on your personal needs. Keep in mind most homeowners and renters insurance won’t fully cover your jewelry, so extra coverage may be necessary if you can’t stand to lose a piece or collection.
If your items have significant value, including sentimental value, enrolling in the best coverage can provide important protection and peace of mind.
To better understand whether or not a policy is right for you, here are a few considerations to remember:
- Can you pay for replacing or replacing your collection if it was lost, damaged, or stolen?
- Do you want to be responsible for covering these costs?
- Are you okay with losing your jewelry and simply moving on or would you be emotional about the loss?
Depending on your answers, coverage is an affordable way to prepare for possible losses and avoid expensive replacement or repair costs.
How To Insure Jewelry
You can insure your jewelry in two ways: through your property insurance or a specialized jewelry policy.
For property insurance, you should “schedule” your jewelry (add a rider or endorsement) to ensure coverage for its appraised value.
Always compare jewelry quotes from both methods to see which offers better coverage and rates for your needs.
You can also raise the coverage limit of your property insurance policy, and though this is usually cheaper, you will face limits on individual pieces and overall losses for your collection.
For example, if you have a watch worth $4,000, you may only be able to cover half of it and for your overall collection, you may only have $6,000 in total coverage leaving you to handle the rest out of your own pockets.
Standard homeowners, renters, and condo insurance may cover jewelry up to a sub-limit but adding a rider ensures coverage up to the appraised value.
However, when you add a rider to your policy, you typically must provide a recent receipt or appraisal and photos of the jewelry.
Does Renters Insurance Cover Jewelry?
Renters insurance jewelry coverage is available as your collection is considered personal property, but remember, your policy is going to have limits that may not include the full value of your collection or the full value of higher-valued pieces.
Does Homeowners Insurance Cover Jewelry?
While your home insurance policy will cover jewelry, often only for theft, there are several limits involved. Both for individual pieces and collections as a whole.
You can also opt for an HO5 policy which expands these limits by providing coverage on an open peril basis. Therefore, your jewelry is going to be covered unless it’s explicitly excluded.
With that being said, even an HO5 policy is going to have policy limits that may leave you on the hook for replacement costs for larger losses.
This is why considering riders is so important. The best insurance for jewelry is the coverage that works for your individual needs and you’ll need to compare different home policies and endorsements to determine what’s right for you.
Jewelry Appraisal for Insurance
If you are insuring jewelry, you’ll need to get it appraised. Jewelry appraisals assess rings, necklaces, brooches, earrings, etc.
A professional checks the authenticity of stones and metals and examines craftsmanship to determine the current market value for insurance purposes.
Proper care of expensive jewelry includes regular appraisals and it’s recommended that you appraise high-value items every three to five years.
By doing so, you ensure accurate coverage for repairs or replacements. Work with a trusted gemologist for a precise insurance appraisal and maintain the right level of coverage for your needs.
Jewelry Insurance Claim Investigation
When filing an insurance claim for lost jewelry, damage, or repairs, companies may investigate claims to check their legitimacy. This helps claims adjusters decide how to handle a claim and prevent fraud.
Claims investigations prevent false or inflated claims through the use of evidence, interviews, and records.
Typically, fraud involves fake thefts of watches, rings, and necklaces.
Those committing fraud might claim a break-in or robbery that didn’t happen or in some cases, the jewelry claimed never existed.
In other cases, the jewelry exists, but the robbery is staged and the item might be hidden, pawned, or sold before making a false claim.
While these scams may be tempting to some, it’s important to realize the legal ramifications of what can follow a conviction:
- If you are guilty of fraud between $1,500 and $19,999.99, you’ll face a state jail felony.
- Anyone committing fraud involving $20,000 to $99,999.99 is facing a third-degree felony charge.
- You’ll face second-degree felony charges for fraud involving $100,000 to $199,999.99 and a first-degree felony for anything $200,000+.
Beyond the hassles, possible prison times, and legal fees you might face as a result of fraud, you are likely going to be dropped by your insurer and have difficulty finding coverage in the future.
Jewelry riders are affordable options for protection meeting the needs of many households but fraud is never acceptable.
Note: If you lose your jewelry and file a legitimate claim, this is fine depending on the terms of your policy.
However, if you do find the missing item, you must inform your insurance company as soon as possible.
Otherwise, you may face fraudulent charges and general issues with your insurance company if it’s found that you did not disclose its discovery.
Is My Jewelry Covered Under Auto Insurance?
While your auto policy won’t cover personal property that is stolen, you can still rely on your home, renters, and/or a rider. Damaged items after an accident may also exceed your policy’s terms or limits.
In this case, you may have to take legal action against an at-fault driver, which can be a stressful and costly endeavor. Having jewelry insurance can help you avoid these scenarios and restore your loss more easily.
Sources:
III. Accessed June 2024. https://www.iii.org/article/floaters-and-endorsements-special-coverage-valuables
BUKH Law Firm. Accessed June 2024. https://nyccriminallawyer.com/fraud-charge/insurance-fraud/jewelry-insurance-fraud/