How Do I Insure My Jewelry?

Unfortunately, during these tough economic times, we always tend to see a spike in robberies and burglaries of homes and valuable possessions such as jewelry. Accordingly, jewelry insurance or what some refer to as valuables insurance should be something that every American should consider. For some, their favorite piece of jewelry is more than a valuable possession, but more of a reflection of who they are and in most cases a memory or symbol of a loved one and relationships. Protecting your jewelry from theft, damage, mysterious disappearance or loss is as important as protecting anything of great value. Putting an insurance policy on something like your engagement ring may not sound romantic, but nothing is sweeter than peace of mind.

There are a few different ways to ensure your jewelry or valuables. Typically, jewelry insurance can be purchased as an extension for your renters’ or homeowners’ policy. Such a policy is usually referred to as a “rider” policy. Renters’ and Homeowners’ insurance policies usually insure the things in your home, but only up to a certain dollar value, never exceeding $5000. Expensive and special items such as engagement rings, art or electronics are guaranteed through scheduled personal property coverage. Another option is to ensure your ring through a company that specializes in jewelry insurance. Such a policy might offer more coverage than a standard homeowners’ policy.

Some questions to consider before choosing a Rider Policy:

1. Is the jewelry or valuable covered if you lose it accidentally or only if it is stolen?
2. How will the insurance company replace the ring? With a check? Or will they require you to purchase a replacement through a jeweler?
3. Are the items insured to full cost or portion of it?
4. What are the deductibles?
5. How will you need to prove the valuable vanished if you make a claim?

To inquire about a rider policy for your jewelry or any valuables, you will need to provide a receipt or an appraisal of your item. For many older items such as diamonds, an appraisal can be obtained from any certified gemologist. And remember if you move after the wedding, make sure you change the address on your policy to reflect your jewelry insurance policy.

If one doesn’t have a renter’s of homeowner’s policy, they can still obtain an insurance policy through certain insurance companies who offer policies on individual pieces. The yearly cost to insure your jewelry is around $2 for every $100 that it would cost to replace. For example, a $10,000 diamond ring would cost around $200 a year to insure. Prices on insuring jewelry and valuables can vary depending on the city of residence, etc.