How to Get Valuable Jewelry Insurance Coverage

Jewelry insurance provides coverage your homeowners policy does not.

Valuable jewelry may consist of diamonds, engagement or wedding rings, precious metals, watches and more. Valuable jewelry can be very expensive to replace if lost or damaged so having suitable insurance coverage is an important commodity. Follow a few simple steps to arrange and secure insurance coverage for such jewelry.

Instructions

1. Identify all valuable jewelry in your collection to insure. Inventory gold, platinum, pearls, diamonds, wedding or engagement rings, collectible costume jewelry, antique jewelry and watches. These items may be difficult or expensive to replace if lost or damaged; thus, having adequate insurance coverage is a necessity.

2. Review existing policies to make sure you do not double-insure your items. If you have homeowners or renters insurance, check how much coverage is available for valuable jewelry. Note the situations covered: lost, stolen, destroyed or damaged. If you don't have a homeowners or renters policy, you may have to buy a stand-alone jewelry insurance policy.

3. Get the jewelry appraised for insurance. Use the services of a professional appraiser or gemologist. Obtain a certificate of appraisal.

4. Arrange an affordable deductible amount. Assess how much out-of-pocket expense you can afford in case of theft, loss or damage. Use this amount as your deductible.

5. Check the type of insurance policy appropriate for the jewelry. Generally, insurance providers offer a "cash value" and a "replacement value" policy. Cash value pays the market value of lost or damaged jewelry. Replacement value policies pay replacement cost. Contact your homeowners/renters insurance companies to obtain and evaluate coverage and premiums. Also, contact jewelry insurance providers to include in your review. Most insurance companies provide online quotes.

6. Schedule regular inspections for all insured valuable jewelry. Inspect your jewelry for maintenance and to secure stones and settings once or twice a year. During inspection, find out how much your jewelry is worth. Valuable and collectible jewelry may go up in value over time and this may require an adjustment to insurance policies.

References

• Insurance Tree: Insuring Jewelry: Managing Risks