What Is Jewelry Insurance?
Jewelry insurance is a type of coverage that specifically covers valuable jewelry pieces. While many homeowners insurance plans do offer coverage on jewelry, they often cap out at a certain amount. If you have pieces that are worth more than the coverage limits of your insurance, you do not get reimbursed for the item’s full value if it’s lost.
Jewelry insurance fills in these gaps, making sure your valuables are covered at their total appraised amounts. If you have an expensive wedding band, diamond bracelet, or another authentic piece that would cost a lot to replace, jewelry insurance can be a worthwhile investment.
Table of Contents
Extend Your Home Insurance Coverage For Your Jewelry
If you have renters or homeowners insurance, some policies can limit or exclude coverage for high-expense items like jewelry. To make sure these pieces are covered, you may want to consider jewelry insurance. Insurance on jewelry specifically protects your favorite pieces, such as engagement rings, wedding rings, diamond necklaces, and more, if they’re ever lost, stolen, or damaged.
The Federal Bureau of Investigation estimates that thieves steal $100 million worth of jewelry every year, so this type of insurance can help you recoup your losses if you’re a victim. There are two main ways of insuring jewelry at higher amounts. The first is to add a floater to your existing homeowners insurance policy. This specifically increases the coverage limits of specific items of your choosing. The second option is to buy a standalone jewelry insurance policy that’s separate from your homeowners insurance. Learn more about these types of insurance on jewelry to see what’s a good fit for you.
What Is Covered in Jewelry Insurance?
Jewelry insurance often covers pieces that are damaged, lost, or stolen, including the following items:
- Antique jewelry
- Cuff links
- Engagement rings
- Wedding rings
Many jewelry insurance plans also cover pieces that go missing in a mysterious disappearance. For example, if you have a diamond necklace that you misplace. In many instances, jewelry insurance also covers losses outside of your home. For example, if you lose your wedding band while on vacation, your policy may reimburse you for a replacement.
What Is Not Covered In Jewelry Insurance?
Jewelry insurance does not cover everything that could happen to your jewelry. For example, it does not provide reimbursement for damage caused by normal wear and tear. If your band is starting to wear down or your diamonds have become dull, jewelry insurance does not cover repairs.
Intentional damage is also not covered, including instances where you go to get a ring resized and it is damaged in the process. In addition, if your jewelry has pre-existing damage, your insurance company will not pay to have that fixed. For example, if you purchase a policy and your earrings were already damaged from a fire, your insurance will not cover its repair. Instead, it will only provide coverage for new damages.
Is Jewelry Covered in Standard Home Insurance Policies?
A standard home insurance policy normally limits coverage to $1,500 for theft of jewelry. This is total, not per piece, so for many homeowners, it is not enough to cover their collection, especially as an individual piece of valuable jewelry can already be more than $1,000. Jewelry insurance helps you supplement this coverage so your entire collection can be covered.
It is possible to raise the coverage limits on your home insurance policy, which would increase your premium. This might be a good option if you do not have a lot of pieces and only need slightly more coverage overall. However, if you own jewelry priced significantly higher than your standard policy’s limits, you may be better off taking out additional coverage through a stand-alone jewelry insurance policy or scheduled personal property rider.
How Does Insurance on Jewelry Work?
Before you can take out a jewelry insurance policy, you may need to have your pieces appraised first. This allows your insurance company to assess the true value of the item, so they know exactly what to pay you if you make a claim. It also helps to set your monthly premium amount.
Your insurance company can advise you on where to take your jewelry for the appraisal, but generally, any reputable jeweler or appraiser can do the job. They can inspect your piece and provide you with a detailed description of the stone, setting, and value. Once you have this information, you can submit it to your insurance company so they can calculate your coverage.
Whether you’re buying a separate jewelry policy or adding a floater to your existing policy, an appraisal helps you know how much additional coverage to add on.
How Reimbursement Works
If you ever need to make a claim, it’s important to get in touch with your insurance company right away. You may need to pay a deductible if you’re using your standard homeowners insurance policy. If you have a floater or a stand-alone policy, however, these usually do not have deductibles.
The first step is to get a claim number from your insurance agent and provide as many relevant details as you can. This could include photos of your jewelry, any police reports you’ve filed, and copies of your appraisal. The company then processes this information to provide you with compensation based on your coverage.
How Much Does It Cost to Insure Jewelry?
The annual cost of jewelry insurance is usually around 1% to 2% of the piece’s value. As an example, if you want wedding ring insurance and your band has an appraised value of $15,000, you would likely pay $150 to $300 a year for your policy. This is split into 12 monthly premiums, which equals around $12.50 to $25 extra per month. If you’re adding a floater to your existing insurance policy, this cost is added to your original premium.
The average engagement ring cost $3,756 in 2020. This means the average price of engagement ring insurance would be around $37.56 to $75.12 a year, or $3.13 to $6.26 a month.
Should You Consider Insuring Your Jewelry?
For those who own at least one piece of valuable jewelry, the cost to insure it is worthwhile. It may also be worth looking into additional riders that protect against mysterious disappearances or other losses outside of theft.
However, insuring jewelry makes less sense if you do not have any expensive pieces. For example, if your wedding bands do not significantly exceed the typical $1,500 coverage limit, you likely do not need jewelry insurance.
It might also not be worth insuring family heirlooms, particularly if they have more sentimental than appraised value. These pieces may be priceless to you, but an insurance company works off the value gained from appraisal.
How to File a Jewelry Insurance Claim
Filing a jewelry insurance claim varies between insurance providers, but the main steps are likely similar. First, report any stolen items to the police. Your insurer might request a copy of the police report, so make sure you get everything on record. Your insurance company might also need the following information:
- Appraisal records
- Description or photos of the missing pieces
- Accounts of any damage
- Repair estimates from a certified jeweler
You may have to pay a deductible with your claim as well, though this is not the case with every policy, particularly if you have stand-alone jewelry insurance.
Once the company receives your claim, it may take anywhere from a few days to a few weeks to receive your payment, repair, or replacement. Follow up with your insurance company regularly to see if they require any more information from you.
Tips for Protecting Your Jewelry
While home insurance provides some coverage for your jewelry and jewelry insurance provides more coverage, it is still the most cost effective to prevent damage or theft in the first place.
To prevent your jewelry from being stolen or damaged, keep it in a safe deposit box or at-home safe. If possible, bolt these to the floor and tuck them away in a hidden location to make them hard to find and access. You might also consider spreading out where you store your jewelry in your home, as this makes it harder for a thief to quickly grab your pieces. Avoid telltale jewelry boxes or dresser drawers, as these are easy locations for a thief to access.
You might also consider installing a home security system. Something as simple as security cameras can identify and alert you to the presence of thieves when you’re not around. More advanced systems, like window tamper sensors or motion sensors, can let you know as soon as an unwanted presence is detected.
Finally, keep a good inventory of your pieces. Include photos, a description of each item, and the original receipt. This can help immensely if your jewelry does go missing.