After the wedding and the honeymoon, it’s time to come back to reality. As you are taking care of documents and unpacking gifts, this is a good time to consider insuring your engagement ring and wedding band.
Most newlyweds don’t think about insurance coverage until it’s too late. When a valuable diamond falls out, the ring is lost or stolen, many regret not getting their jewelry properly insured. Don’t make this mistake. To assist you, we’ve provided some helpful information on when to get jewelry insured and how.
Is Your Bling Backed by Insurance?
You should get any particularly valuable piece of jewelry insured. The best time to take care of it is directly following a significant jewelry purchase. Of course, this won’t protect the sentimental value, but proper coverage will help you repair or replace the jewelry pieces that you care most about. You will probably want to invest in additional or separate insurance policies, however. Here’s why…
Is Jewelry Covered by Homeowner’s Insurance?
Typical homeowner’s insurance only covers a limited value amount for jewelry items and require a deductible payment. Additionally, these policies don’t always cover all problems, such as accidental loss or theft.
These days, the average couple spends $6,000 to $9,000 on engagement rings and wedding bands. Yet the most common renter’s and homeowner’s insurance policies limit coverage for jewelry to about $1,500 – 2,500. Once you figure in the deductible, this means that the bulk of the ring’s value wouldn’t be covered by homeowner’s insurance. That limited payout, of course, is only available if you have proof that your home was damaged by a fire or natural disaster. For other issues, you may be completely out of luck when it comes to regular insurance coverage.
How Does Floater Insurance Cover Jewelry?
One great option is known as a ‘floater,’ ‘rider,’ or ‘scheduled personal property’. This supplemental itemized coverage can be tagged onto your current homeowner’s insurance. This type of policy is often used to cover jewelry and other expensive property items. Advantages of adding a floater may include setting coverage at the exact dollar value, fewer exclusions, and coverage for different types of risk. If the jewelry is lost, stolen or damaged, this type of insurance is designed to help you replace it.
Is It Better to Get a Separate Insurance Policy for Valuable Jewelry?
Because the average homeowner’s insurance would only cover a fraction of your diamond ring, you should also consider a separate policy. This type of policy would work to cover any gaps in your current insurance. It can also be tailored to your jewelry collection in terms of value, risk, and reimbursement options.
Some insurance providers specialize in jewelry. These agencies often work with jewelry stores and their customers directly. This type of insurance can be more costly, but it gives you more options related to replacement and repair. Specialized insurance is recommended for customized and antique jewelry which would need to be expertly duplicated in case of misfortune.
How Can I Insure My Jewelry Collection?
Don’t waste any time. Accidents and misfortune can strike at any time, so you want to protect your treasures right away. Here’s how to get started with insuring your jewelry.
Review Your Existing Policy
First, you should review your current homeowner’s or rental insurance. These policies can be organized in a variety of ways – with general coverage for all valuables in the home, blanket coverage for jewelry, or itemized coverage. Each category will have a set dollar amount limiting the payout. Typically, single items are covered up to $1,500 and blanket coverage ranges from $2,000 to 10,000. You should get familiar with your insurance policy to understand if it is adequate.
Make a Record of Your Jewelry Collection
Next, make a document listing each piece and its relative value. This should include family heirlooms, vintage pieces, as well as new diamond jewelry. Include pictures of each item in your record. If you have certificates of gemstone quality or receipts, store them together with this documentation. All of this will be handy when choosing an insurance policy and if you ever need to file a claim.
Get the Jewelry Appraised
If you aren’t sure of the value of a ring, necklace, bracelet, timepiece, or earrings – have it checked by a trustworthy appraiser. If you are purchasing a new piece of fine jewelry, a reputable store should offer you a qualified appraisal. An appraisal may even be required in order to buy extra insurance coverage.
Use this tool by the American Gem Society to find a professional appraiser near you.
Pick the Right Coverage
When shopping for insurance, there are a few factors that you should keep in mind:
- Value – consider the amount of coverage in relation to the jewelry and the inclusion of appreciation.
- Replacement options – you may be able to choose a cash payment or duplicate replacement.
- Repairs – most jewelry owners want expensive repairs to be covered by insurance as well.
- Jeweler – the insurance agency may have a list of preferred jewelers, or allow you to choose your own.
- Coverage – look over the types of risks that are covered – loss, theft, damages, etc.
- Cost – ensure that the cost of the policy makes sense in relation to the expense of replacing the jewelry. Carefully review the price of deductibles and premiums.
Finally, be sure to shop around. Get a few quotes before you make a final decision. Insurance coverage and prices can vary greatly from one provider to the next.
How Does Jewelry Insurance Work?
Jewelry insurance covers valuable items just like other types of insurance. It often provides higher reimbursement amounts than regular homeowner’s insurance. An appraisal is needed to verify the value before coverage goes into effect. Then, if the piece ever needs to be repaired or replaced, you can submit an estimate and make a claim.
How Should I Keep My Jewelry Adequately Insured?
- Make sure all of the details of the current policy are written clearly in your paperwork.
- Check with your insurance agent regularly to make sure that there have been no changes to your policy or coverage. You may also find better rates if you shop around every few years.
- Because the value of gold, and other precious metals, fluctuates, you might want to have fine jewelry appraised every few years. This will ensure that the value is accurate and up to date.
- Store all your insurance records in a safe place. Written appraisals, receipts, photographs, certificates of authenticity and itemized lists will be handy if you ever need to make an insurance claim.
Valuable jewelry should be something that you can pass down from generation to generation. We hope these tips will help you protect your engagement ring and wedding band for many years to come. Contact the fine jewelers at Janvier’s with any questions about caring for your precious pieces. Visit our store or call us at (302) 366-7448.