Do I need jewelry insurance?
The short answer is maybe. Our opinion is to only buy insurance if you cannot bear the expense of replacing it yourself. We do recommend insuring engagement, wedding, and anniversary jewelry. These pieces tend to be the most expensive jewelry investments. Theft, fire, natural disater, and mysterious disappearances do happen. You will want to make sure you are covered.
There are basically two ways to insure your jewelry if you choose to do so:
- Use your home owners/renters insurance
- Use a personal jewelry insurance company
Home Owners/Renters Jewelry Insurance:
You might be surprised to learn that your homeowner or renter's insurance policy probably does not offer full coverage for your engagement ring and other fine jewelry. Your insurance policy probably covers jewelry theft, but not loss that occurs for other reasons. Renter's and homeowner insurance policies set limits for the loss of certain categories of personal property, including jewelry. Homeowner policies typically pay a maximum of $1,000 for jewelry theft. A renter's insurance policy might have a lower limit for jewelry loss -- $500 is common. Does your insurance policy cover jewelry loss for reasons other than theft -- such as for lost or damaged items? Read your policy carefully and ask your insurance agent to clarify the types of losses that are covered on your standard policy.
Additional Jewelry Insurance:
You can usually purchase additional insurance for your fine jewelry, but be sure to ask your agent questions so that you have a good understanding of the coverage. Here is a list of some of the questions we suggest you ask your agent:
- Is there a deductible? If so, how much is it and how does raising or lowering the deductible affect my policy costs?
- Is an appraisal required prior to obtaining insurance? Are there only certain types of appraisers whose reports are accepted?
- Are the items covered no matter where they take place? Would the policy cover me for a loss that occurs during domestic or international travels?
- Are items covered for full replacement cost? Must I replace the item, or can I obtain a cash settlement?
- Does the policy cover repairs to damaged jewelry?
- Does my insurance company allow you to CHOOSE THE JEWELER who will re-make or replace your jewelry? Or DO THEY CHOOSE THE JEWELER?
Personal Jewelry Insurance:
The Chubb Group provides insurance specifically for jewelry. The company offers policies through independent insurance agents and jewelry retailers. Here's a brief description of Chubb's engagement ring policy guidelines:
- Full coverage for the itemized amount shown on the policy
- No deductible
- Coverage applies worldwide for lost or stolen rings
- Replacement is not required, Chubb offers a cash settlement. If you do replace the ring, you select the jeweler.
- Chubb recommends an appraisal for all insured jewelry, but only requires an appraisal for items valued over $50,000. Chubb does not offer coverage for loose diamonds.
Jeweler's Mutual offers personal jewelry insurance that covers both repair and replacement. The policy is not available for unset stones, damaged items, or antique jewelry. An appraisal is required for coverage.
