Jewellery

Insurance For Jewellery

What You Need To Know About Insurance For Jewellery

Protecting your investment is crucial, and insurance for jewellery is a necessary part of this process if you have gold and silver pieces of substantial value. It is important to understand first what is covered and what is needed to purchase insurance for jewellery to ensure that you are protecting your property at a price that is fair and affordable.

How Do I Know If I Need Insurance For Jewellery?

Jewellery is generally covered on your homeowners’ insurance policy, but only up to a cap, which is generally around $2,000. If you own a piece or pieces that are worth more than this, you will need to purchase additional jewellery insurance. You should also check with your homeowners’ insurance company to see if loss is covered outside of the home; for example, you may not be covered if your jewellery is lost or stolen while traveling.

What Is Covered? What Is Not?

Your insured jewellery will be covered for loss, damage, or theft, usually even when you are traveling abroad. Of course, every policy is different, and you should check with your insurance company before assuming anything. Unlike a home policy, a jewellery insurance policy will pay out to the actual appraised value, which takes into account if the piece is an antique or a designer original.

You cannot cover loose or uncut diamonds or other stones when you purchase insurance for jewellery. The stones must be part of a setting and be able to be worn as jewellery in order to be covered. Any new jewellery purchased after the purchase of the insurance policy must be reported and covered by your insurer, or its loss will not be covered.

Details To Consider

When purchasing insurance for jewellery, it is important to remember that certain items come in pairs or sets. A pair of earrings, for example, or a set of bangle bracelets, must be properly insured as multiple items. Otherwise, when one earring or bracelet is lost, damaged, or stolen, you may only be reimbursed for that one earring, whereas the loss has rendered the other earring useless.

What Is The Cost?

Another important thing to consider when purchasing insurance for jewellery is the cost. Jewellery insurance generally costs around 1.5% to 3.5% of the actually appraised value of the pieces. For this reason, it is necessary to submit a professional appraisal and even a picture of each piece in order to purchase insurance for jewellery.