Not only does your jewelry have sentimental value, but it would cost you an arm and a leg to replace should it get lost, stolen, or damaged. This is why having enough jewelry insurance is paramount for financial protection and peace of mind.
Read on to learn everything you should know about jewelry insurance.
What Is Jewelry Insurance?
Jewelry insurance is an addition (also known as an add-on, rider, or floater) to your homeowners or renters policy that covers engagement rings, earrings, necklaces, watches, and other named items should they be lost, stolen, or damaged. In the event of a claim, your insurance company will repair or replace the covered item.
What Is Covered by Jewelry Insurance?
The most commonly covered perils include fire, lightning, explosions, vandalism, smoke, theft, falling objects, volcanic eruption, windstorms, hail, sudden cracking or tearing, riots, and damage caused by ice, snow, sleet, vehicle, aircraft, and short-circuit. However, there’s no mandatory coverage, so you should check with your insurer whether your items are covered.
What Is Not Covered by Jewelry Insurance?
The most common exclusion is wear and tear. For example, watch scratches are unlikely to be covered since this is a typical wear and tear case.
Jewelry Insurance as a Part of Your Homeowners Insurance
Some homeowners policies may have a long list of covered jewelry, whereas other policies may exclude jewelry and valuables altogether. Also, take into account that standard homeowners and renters policies may have low coverage limits.
- For example, if you’ve lost $10,000 worth of jewelry, and the limit on your homeowners policy is $2,000, then you will have to pay $8,000 out of pocket.
That said, there’s a chance that your homeowners insurance provides enough coverage for your particular case. But if it doesn’t, then you may need extra coverage.
Extra Coverage for Your Jewelry
You may need extra jewelry coverage when:
- Jewelry insurance is excluded from your homeowners or renters policy
- You want to include additional perils/items or increase coverage limits
Purchasing extra coverage boils down to adding items to your policy or increasing coverage limits at the expense of a higher premium.
Do You Need Extra Coverage for Your Jewelry?
Whether you need high-value jewelry insurance depends on the total cost of your jewelry and your risk tolerance. In general, to insure $10,000 worth of jewelry, you have to pay around $10 per month or 0.1% of the cost of jewelry. With this in mind, you can determine whether extra coverage is worth it or not.
How Much Is Jewelry Insurance? 2022 Insurance Rates
With most insurers, the annual cost of wedding ring insurance, diamond ring insurance, and any other jewelry insurance will vary from 1% to 2% of the value of the jewelry. So, for example, insuring $5,000 worth of jewels will cost you $50 to $100 per year.
The factors that affect the pricing include your state, zip code, the type and amount of coverage, your deductible, and whether you’re adding coverage or buying a standalone policy.
What Do You Need to Do Before Buying Jewelry Insurance?
There are a few things you need to do in advance.
- Document all your jewelry and get it appraised (for newly bought items, a receipt may be enough). This will help you understand what and how much insurance you need while making it simpler to get an online quote.
- Set your priorities. Different policies cover different items with different limits, not to mention that the coverage you need may already be included in your homeowners policy. Make sure to configure your plan so that you are comfortable with it. For this, you may need help from jewelry insurance experts.
- Get quotes from different insurers. The market is vast, so don’t stop until you find the most suitable offer.
Best Jewelry Insurers in the United States
There are dozens of reputable insurance companies in the United States, including Jewelers Mutual, Lavalier, Chubb, Zillion, Gem Shield, GEICO, and JIBNA. When choosing your insurer, take into account the type and amount of coverage, the level of personalization and privacy, and your budget and risk tolerance.
How to File a Claim for Lost Jewelry?
Before you file a claim to your insurer, report the loss or theft to the police, giving as many details as you can to expedite the investigation. Note that, depending on your policy type, you may have to pay a deductible before you are reimbursed for the lost item.
Do I Need to Insure My Jewelry?
Jewelry insurance is not mandatory, but you may need it if you have pricey items and/or are intolerant to the financial and moral risk of your valuables being lost, stolen, or damaged.
What If My Jewelry Is Underinsured?
For example, if the limit of your coverage is $1,000, and the total value of stolen items is $10,000, then you will have to pay $9,000 out of pocket. This is what may happen if you are underinsured.
Will My Homeowners Policy Cover Jewelry?
Your homeowners or renters policy may or may not cover specific jewelry items.
If it does, make sure to check whether the amount of coverage is enough.
If it doesn’t, you can add jewelry coverage to your homeowners or renters policy.
Do I Need Homeowners Insurance to Buy Jewelry Insurance?
As a rule, you need homeowners or renters insurance as underlying coverage for a jewelry add-on. However, some insurers do offer standalone jewelry insurance.
What Should I Protect My Jewelry From in the First Place?
Almost half of all jewelry claims are theft claims, followed by water damage, mysterious disappearance, accidental damage, weather, and fire. That said, you never know what the future holds, so it would be reasonable to find a golden mean between the type/amount of coverage and the monthly premium.
Oleksandr is an expert in deep research. He covers insurance topics across four major insurance verticals – auto, health, life, and home insurance – while taking into account the legal landscape of the state in question. Come rain or shine, you can expect regular quality blogs and timely updates from Oleksandr.