Do you own a piece of jewelry that has both sentimental and material value? Are you curious how you can protect these jewelry pieces from potential threats?
People who own valuable pieces, such as diamond engagement rings or necklaces with precious stones, may want to preserve their jewelry’s value and ensure that someone will cover them if anything goes wrong. Most people are afraid of getting robbed when they possess this type of jewelry, and jewelry insurance is here to help.
Below, we will cover all the essential steps of jewelry insurance so that you know what you are getting into when you decide to get one for your valuable pieces.
What is Jewelry Insurance?
Jewelry insurance serves the purpose of protecting your most valuable items in a monetary sense. If something bad happens to your jewelry, you will be able to get its material value back, thus protecting yourself from suffering more considerable material loss. This insurance also covers jewelry that has sentimental value to you, thus protecting some of your favorite pieces.
Let’s see what jewelry insurance covers and what it doesn’t.
Jewelry insurance covers:
- Damage: if your jewelry gets damaged after you get insurance for it, the insurance will cover the damage. These damages include fire, earthquakes, and other natural occurrences;
- Loss: after getting jewelry insurance, you will be eligible to ask for coverage if you lose your favorite jewelry piece;
- Theft: one of the most common sources of fear among jewelry owners is theft. Jewelry insurance covers theft and will make sure to pay off the value of your jewelry if theft occurs.
When it comes to the type of jewelry you can get insurance for, you can insure pretty much everything you own, such as engagement ring insurance, necklaces, antique jewelry, bracelets, and other items that fall under the jewelry category.
Jewelry insurance doesn’t cover the following:
- Damages that occur intentionally;
- Wear and tear damages;
- Damage that is already present on the jewelry piece.
Let’s move on to the different types of insurance available.
Types of Jewelry Insurance
When it comes to jewelry insurance, there are a couple of options to choose from, depending on the number of valuable pieces you have. We will present some jewelry insurance options to help you decide which type you need based on your jewelry collection.
Property insurance
Property insurance doesn’t cover your jewelry specifically – this type of insurance covers all of the property that is in your possession. For example, this type of insurance will protect your furniture, house, backyard, and other property possessions (jewelry is one of them). Property insurance is a good option if you don’t have an extensive jewelry collection or a collection with less sentimental value.
However, you must read all the terms before choosing property insurance for your jewelry. This insurance probably won’t offer a variety of situations where you can get your value back, and you won’t get the total value of your jewelry either.
Blanket Insurance
Since standard property insurances have a value limit (mostly around $1,500 for your jewelry), you may wonder how to increase the limit without changing the insurance. Blanket insurance is all about that – getting blanket insurance or coverage will specifically increase your jewelry’s value limit.
This option is the best for people with a collection of jewelry that overall has a high value. For example, if you own a couple of gold earrings, a couple of silver necklaces, and rings, blanket insurance may be a perfect choice. You will protect all of your jewelry under one insurance.
Scheduled Coverage
When it comes to more valuable, individual pieces of jewelry, you may want to get scheduled coverage. This coverage will take care of individual items and provide, for example, engagement ring insurance. People with diamonds or other valuable jewelry pieces mostly opt for this option.
It is the perfect option if you only want to ensure a couple of pieces of jewelry. You will pay for insurance according to the value of your individual jewelry items. For example, if you own a ring valued at $10,000, you will pay 1%–2% for insurance, which will total $100 a year.
Valuation
Before you get your insurance, you will have to take all of your jewelry and get it evaluated. This process is especially thorough regarding scheduled coverage since the value of these jewelry items may be higher. The valuation process consists of a professional who will consider the materials used for your specific item and give their valuation of said item.
After this, you should take your valuation papers and hand them to an insurance company that will propose the best insurance option for your jewelry and tell you the insurance program’s cost. This step is unavoidable if you want insurance plans for your valuable jewelry pieces.
Conclusion
Many people fear losing their jewelry because these items have material and sentimental value. If you want to ensure that your jewelry is protected and that you won’t suffer any material loss, you should get jewelry insurance. We have mentioned the basic points you need to consider with this type of insurance so that you can choose the best option for you.
