Is Your Jewelry Covered by Insurance? Maybe!

Are you or someone you know getting engaged this Valentine’s Day? Are you giving your Valentine a watch or necklace to tell them how much they mean to you?

Every reason why you treasure a piece of fine jewelry is a reason you should insure it.
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However, calling it “jewelry insurance” may be a stretch. You don’t need a separate policy to insure your jewelry. You just need to ensure you have the right personal property coverage from your homeowners, condo, or renters insurance.

Jewelry coverage helps protect the investment you’ve made by helping you replace them if you experience a loss that’s covered by your policy. The coverage is only for certain instances and set dollar amounts, so double check what coverage you have.

Know What Your Existing Insurance Policy Covers

If you already have personal property coverage as part of a homeowners, renters, or condo policy, you probably have some form of protection for your jewelry. The typical insurance policy covers you, up to your policy limit, for jewelry that’s stolen or damaged in specific incidents, such as a fire or burglary at your home.

According to Cannon, “If a thief can’t find cash in your home, he or she will rummage through closets and drawers looking for jewelry. ” In 2016, thieves stole nearly $1.4 billion worth of jewelry and precious metals.
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But keep in mind that the typical insurance policy will not cover everyday damage, such as a stone falling out of its setting.
It’s also important to know how much you’re covered for. Your insurance policy may cover each individual piece of jewelry at a set amount,  or it may cover your jewelry collection as a whole.

Calculate the Value of Your Jewelry Collection in Today’s Dollars

To determine whether you have enough jewelry insurance, you need to know how much your pieces are worth. Keep in mind that your jewelry may be worth more now than when you bought them. The value of precious metals and precious stones can increase over time. Have your pieces appraised about every three years.

Use these appraisals, as well as receipts for recently purchased items, to add up the value of your collection. Then compare it to how much jewelry replacement coverage you have on your homeowners insurance, condo insurance, or renters insurance.

Fun Fact: The average cost of an engagement ring in the U.S. is $5,500, according to The Knot. However, one-quarter of all respondents in the survey said they spent between $1,000 to $3,000. 11% of ring shoppers are spending under $1,000.

Decide Which Items Require Additional Coverage​

If the jewelry coverage on your policy is lower than the value of your collection, you’ll likely want to purchase additional coverage. For example, you may have a $2,000 pair of diamond earrings and a $7,500 engagement ring. If your insurance policy covers jewelry loss – no matter how many pieces – at $3,000, you’ll be short $6,500 of coverage if both pieces are lost in a single incident.

To fill this gap, you can insure high-value items individually as part of your homeowners insurance, condo insurance, or renters insurance. This is known as “scheduling valuables” or adding a “rider” or “endorsement” to your policy. To do so, you will likely need a recent receipt or appraisal to establish each item’s value.

Once scheduled, the item will be covered if it is damaged or lost in a covered incident for the full scheduled amount. Typically, scheduling an item also gives you broader coverage. A lost stone that isn’t covered under your homeowners policy, for example, is likely covered under a policy rider.

Catalog Your Jewelry in a Home Inventory

Once you arrange coverage for your high-value jewelry, it’s important to create a home inventory. This isn’t as vital for your scheduled pieces because your insurance company has a record of their value. However, you’ll want to record the value of any unscheduled items.

Ideally, you should include photos, receipts, appraisals, descriptions, brand names, etc., of all valuable personal property in your home inventory – not just your jewelry. That way, if there’s a loss, you’ll already have the documentation needed for a personal property claim.
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You can put it into a Word document and save it to the cloud or a flash drive in case your computer is damaged or stolen. Or, you can use a Web program or mobile phone app, such as the home inventory app, to help you catalog your belongings.

​Want to Learn More?

You can insure your jewelry easily and affordably. You may pay as little as $10 a year for each $1,000 of coverage. So, if you get something special for Valentine’s Day this year, think about protecting it.
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If you have any questions about your homeowners or any other type of insurance, please give Berkshire Insurance Services a call at (610) 376-7300 or contact us online. We love talking insurance and would be happy to ensure that you have the right coverage at the best price.