Jewelry Insurance

The Gentleman's Guide to Purchasing Jewelry Insurance

You've decided to purchase that pricey piece of jewelry and have left a substantial sum of money with the jeweler. It's now up to you to safeguard your investment. With insurance costs ranging from 1-3 percent of the value of the jewelry, purchasing jewelry insurance is a no-brainer. Jewelry is misplaced, stolen, left behind, run over, slammed in doors, and flushed down drains. All of it is heard by insurers. Don't assume that your homeowner's or renter's insurance will protect you. Many homeowner's insurance only covers $1,000 in total for jewelry theft and have a hefty deductible.

When filing a claim, a $1,000 limit for jewelry coverage on a homeowner’s policy not only doesn't cover much, but it also typically needs you to locate the sales slip, appraisal, and/or replacement bids. A separate jewelry insurance policy from a specialty insurer costs about the same and usually has a lower deductible. Making a claim can save you time and frustration when dealing with homeowner’s coverage, and you won't have to file a claim on your own policy.

Obtain an insurance appraisal at the time of purchase to ensure a suitable jewelry insurance coverage. Then look for the best policy for you. Consider the following:

- The extent of coverage. What exactly is covered by the policy? Theft, an unexplained disappearance, and/or property damage? What isn't allowed? Not all insurance policies cover unexplained stone loss or damage. According to Jewelers Mutual Insurance Company, a specialized insurer that covers inexplicable loss, strange loss is one of the most common insurance claims (and damaged stones).

Deductibles are a type of deductible. What are the deductible options? This is the part that you pay for upfront, before your insurance kicks in. Choosing a deductible might help you save money on your insurance costs (payments for insurance). Homeowners insurance frequently has a hefty deductible. When purchasing a separate jewelry insurance policy, you can frequently get better coverage for a comparable price with no deductible or a low deductible. It's something to consider.

- Representations. How successfully does the business handle claims? Independent rating agencies, such as A.M. Best, are a good place to start. Is it possible to file a claim at any time or online? What are the conditions for filing a claim? And how long does it take to file a claim?

- Do you require a number of quotes? Is it possible to choose your own jeweler, or does the insurer have the final say? Is it a stand-in firm or the lowest bidder?

- Coverage for travel. Is the ring protected when you travel, even if it's outside of the country?

- Appraisals are a type of appraisal that is used to determine the value of To document and evaluate your jewelry piece, most insurance companies need an evaluation. Do you require one? If one isn't required, how is your jewelry valued, and what documentation do you need to prove worth in the event of a claim?

- Inspecting things. Is the insurer requiring regular inspections that, if not completed, will terminate the policy?

- Expertise in the field of insurance. If you have a claim, who do you want to deal with? Is it true that experience matters? The Jewelers Mutual Insurance Company hires solely jewelry insurance specialists.

- Safety and security. Is there anything in the policy on security? Is it possible to get a discount if you take specific precautions?

- Take a look at the policy. Are you able to see the policy in its entirety? Is it possible to get a sample?