Your diamond engagement ring, antique Rolex, or Tahitian black pearl necklace are priceless possessions that might be lying about unguarded. Homeowners’ or renters’ insurance does not necessarily cover everything under your roof, even though most individuals have a comprehensive policy that covers their house and belongings.
Jewellery and other valuables are often expressly forbidden by insurance contracts. This includes furs, artwork, musical instruments, and more. Some plans include restrictions on the kinds of covered events and the maximum amount that may be substituted. This kind of coverage isn’t always enough, particularly if you plan to replace an item whose value has increased dramatically since you bought it.
What is Jewelry Insurance?
Jewellery insurance provides coverage for the loss or theft of your jewellery. Additionally, some policies cover stolen jewellery. A diamond engagement ring, an old Rolex, or a black pearl necklace you bought in Tahiti may be some of the most expensive things in your home that aren’t being kept safe.
Most people have full coverage insurance on their home and belongings, but just because you have homeowners or renter’s insurance doesn’t mean everything under your roof is covered.
Some plans even say that jewellery and other valuables, like musical instruments, artwork, and furs, are not covered. Some policies only cover certain events or a set amount of money.
In some cases, this level of coverage may not be enough, especially if you need to replace an item that has lost a lot of value since you bought it.
Obtaining Jewelry Insurance
The Insurance Information Institute (III) says there are three ways to get jewellery insurance. Here they are:
1. By Getting A Floating Policy
Adding a personal articles floater to your standard homeowners’ insurance can help protect your jewellery better, but it will cost more than raising the coverage limits.
A report from the III says that floaters cover things that regular home insurance doesn’t, like events like “dropping your ring down the kitchen sink drain or leaving an expensive watch in a hotel room.”
However, some things, like jewellery damaged by floods, are still not covered. Also, policyholders must have a professional value for their gold before they can buy a floater.
2. By Getting A Standalone Program
Individuals who own jewellery can get separate insurance from experts who can offer complete protection.
Some standalone policies and floaters offer similar security, such as against theft, accidental loss, disappearance for no apparent reason, loss of part of a set, and loss while travelling abroad (III). It’s also not typical for a fee to cover both.
3. Through a Home Insurance policy
A typical homeowner’s insurance policy covers property lost or broken in a fire, theft, or vandalism. Insurance companies usually cap coverage by $1,500 to keep premiums low.
The III says the limits are too low “because jewellery is easy to steal.” If the policyholder decides to pay more, this value can often be raised. However, the maximum adjusted limit of $2,500 per piece and $5,000 total may not cover expensive jewellery.
How Does Jewelry Insurance Work?
Some homeowners’ or renters insurance plans cover a certain amount of jewellery as personal property. Sadly, that limit may be too low, leaving many without service.
Jewellery coverage can kick in after an event that is covered, leading to home repairs or other refunds. Policyholders can also make jewellery claims even if they don’t use different parts of their insurance.
Jewellery is, unfortunately, easy to lose and easy to steal. So, if your gold is worth more than $1,000 to $2,000, most insurance companies will not cover it. If you file a claim, you will lose the difference.
For this speciality service, you need to give more information upfront. The company that covers you needs to know what it covers. Then, insurance companies can figure out how much danger there is and set rates.
When you file a claim for lost, broken, or stolen jewellery, you must include pictures and other proof. Another thing an insurer might do is ask you more questions. Based on the terms of your insurance contract, the insurance company would pay out the claim.
What Is Covered In Jewelry Insurance?
Usually, damage, loss, or theft of jewellery is covered by a separate insurance contract. A necklace damage claim will only be paid for if the damage was caused by a problem covered by the policy, like a fire.
You can cover a lot of different kinds of jewellery, such as
- Diamond Engagement Rings
- Antique jewellery
- The Wedding Rings
- Watches
- Earrings
Things That Jewelry Insurance Does Not Cover
If you lose your jewellery, insurance won’t always cover it. Most of the time, gold insurance doesn’t cover:
- Jewellery that already had damage
- Damage from pests
- Normal wear and tear
- Damage done on purpose
How Much Does Jewelry Insurance Cost?
The price of your insurance is unique, just like you are. At Lemonade, renters’ insurance starts at $5/mo, and homeowners’ insurance starts at 25/mo. However, your exact price will rely on several factors, such as:
- What state and zip code do you live in
- How old your building is
- Your tax break
- How much protection do you have
- Add on Extra Coverage.
Like, if you live in an area with low crime, your insurance will cost less than in a room with a lot of crime. Your jewellery (or other things) is less likely to be stolen.
Your insurance will cost a little more if you pick a low deductible, a high coverage amount, or Extra Coverage. This is because you are taking on more risk.
Is it Worth Taking Out Jewelry Insurance?
One of the best things about getting this kind of coverage is that it gives people who own expensive gold peace of mind that their valuable pieces are safe from theft and damage.
Some specialized insurance companies also work with jewellers who can make an exact copy of the lost item. Policies cost between 1% and 2% of the jewellery’s value and are not too expensive.
Jewelry insurance is not for everyone, though. Getting gold insurance is unnecessary for people whose collection is worth less than the amount of money their home insurance covers. People who don’t have a lot of expensive jewellery might be better off buying a helper instead.
If a jewellery owner is thinking about getting this kind of insurance, they should first have their expensive jewellery appraised and talk to an experienced insurance agent.
Conclusion
Most insurance companies give savings to people who buy more than one policy. Getting all your insurance from one company, like home, car, life, and property, will likely save you money in the long run.
You might be able to get jewellery insurance from a company that deals in it if you don’t have homeowner’s or renter’s insurance. Some jewellery stores have these rules, or they can suggest a business that does.
Finally, just because you want to keep your stuff safe doesn’t mean you can’t wear it. If you insure your expensive items, on the other hand, you can use and enjoy them more because you know they’re well protected.
