Men’s Guide to Buying Jewelry Insurance

You’ve made the decision to buy that expensive item of jewelry and left a good chunk of change with the jeweler. Now it’s up to you to protect your investment. With a cost for insurance that averages 1-3% of the jewelry items’ value, it just makes sense to purchase jewelry insurance. Jewelry gets lost, stolen, broken, left behind, misplaced, run over, slammed in doors, and washed down drains. Insurers hear it all. Don’t assume homeowners or renters policies automatically cover you. Many homeowners’ policies cover a total of just $1,000 for jewelry theft, and include a high deductible as well.

A $1,000 limit for jewelry coverage on a homeowners policy not only doesn’t cover much, but it often requires you to find the sales slip, appraisal, and/or get quotes for replacements when making a claim. A separate jewelry insurance policy from a specialty insurer costs a similar amount and often carries a lower deductible besides. Making a claim can avoid extra work and frustration involved when working with homeowners coverage, plus you’re not making a claim on your homeowners policy.

To get a good jewelry insurance policy, get an insurance appraisal at the time of purchase. Then find the right policy for you. Consider these points:

- Coverage. What exactly does the policy cover? Theft, mysterious disappearance, damage? What is excluded? Not all policies cover mysterious loss or damaged stones. Unfortunately, mysterious loss is one of the leading insurance claims according to Jewelers Mutual Insurance Company, a specialty insurer that covers mysterious loss (and damaged stones).

- Deductibles. What are the options for deductibles? You pay this part first, before insurance coverage kicks in. Choosing a deductible can lower your premiums (payments for insurance). Again, homeowners coverage often involves a high deductible. When choosing a separate jewelry insurance policy, you can frequently obtain better coverage with no deductible or low deductible for a comparable cost. Worth thinking about.

- Claims. How well does the company pay claims? Check independent rating agencies, such as A.M. Best. Can you report a claim at any hour or online? What are the requirements to make a claim? And how long does the claim process take?

- Do you need to get multiple quotes? Can you choose your own jeweler or does the insurer tell you who to work with? Is it a replacement company or the lowest bidder?

- Travel coverage. Is the ring covered when you travel – even out of the country?

- Appraisals. Most insurance companies require an appraisal to document and value your jewelry item. Do you need one? If one is not needed, how is your jewelry valued and what do you need to substantiate value at the time of a claim?

- Inspections. Does the insurer require periodic inspections that, if missed, void the policy?

- Insurer expertise. Who do you want to work with if you have a claim? Does expertise matter? Jewelers Mutual Insurance Company employs specialists that only deal with jewelry insurance.

- Security. Does the policy contain security requirements? Are there discounts if you take certain precautions?

- See the policy. Can you view exactly what the policy says? Can you download a sample?

Losses happen. Jewelry insurance just makes sense.

Jewelers Mutual Insurance Company is the only company specializing exclusively in jewelry insurance in the United States and Canada. The American Gem Society and Jewelers of America exclusively endorse Jewelers Mutual. Its continued A+ Superior rating from A.M. Best reflects the company’s strong financial position. Jewelers Mutual insures the jewelry industry and individuals in the

Jewelry Insurance – What You Should Know to Be Sure You Are Protected

Not all homeowners or renters insurance policies offer full coverage for you engagement ring or your other valuable jewelry. Your insurance policy probably covers jewelry theft but not loss for other reasons.

The Typical Insurance Policy

A renter or homeowners insurance policy usually set limits on the loss of certain categories of personal property, like jewelry. Homeowners policies typically pay a maximum of $1,000 for jewelry theft. Where as a renter’s insurance might only pay $500.

You should know whether your insurance policy covers jewelry loss for reasons other than theft like if jewelry is lost or damaged. Read your policy carefully and be sure to ask your agent to explain the types of losses that are covered by your insurance policy.

Buy Additional Jewelry Insurance

You can also purchase additional insurance for your fine jewelry, but be sure to ask your agent plenty of questions so that you fully understand the coverage:

Is there a deductible? If there is, how much is it and if you raise or lower your deductible will it affect your policy costs?

Does the policy require an appraiser to value the jewelry? Do they have only certain types of appraisers whose reports are acceptable?

Are the items covered anywhere? Will the insurance protect you on a domestic or international trip?

Is your jewelry covered for full replacement cost? Will you have to replace the item, or can you get a cash settlement?

Does the policy cover repairs to damaged jewelry?

Some Jewelry Insurance Options

The Chubb Group provides insurance specifically for jewelry. They offer insurance through independent insurance agents and jewelry retailers. This is an example of The Chubb Group’s engagement ring policy guidelines”

Full coverage for the itemized amount shown on the policy.

Do Deductible.

Coverage applies worldwide for lost or stolen rings.

Replacement is not required, Chubb offers a cash settlement. If you do replace the ring you select the jeweler.

They also recommend you get an appraisal for all insured jewelry, but only for pieces valued over $50,000. Chubb does not cover loose diamonds.

Jewelers Mutual is another insurance company that offers policies that cover jewelry. They cover both repair and replacement. They do not cover unset stones, damaged items, or antique jewelry. An appraisal is required for their coverage.

Always make sure you read any fine print in your policy and be sure to ask your agent to clarify anything that you do not fully understand.

Dan enjoys writing articles that help people find the information they need to make informed choices.