While you treat everything with care, have you asked yourself: What would I do if my jewelry were stolen or damaged in a fire or flood? That’s where insurance comes into play.
Insuring jewelry is not always straightforward. A typical homeowner’s policy does provide some coverage, but it’s often minimal – not even enough to cover your engagement ring or wedding band, let alone everything you own. You can extend coverage with a rider or endorsement or purchase a completely separate policy.
To anticipate repair and replacement costs, here’s what you should know about insuring your jewelry collection.
Homeowner’s Insurance Has Limitations
It’s a common misconception that homeowner’s insurance will cover every single damage-related claim, no matter how minor. Yet owner negligence, coverage limits and particular perils can cause certain claims to be denied.
Specifically in terms of jewelry, your homeowner’s policy has limits of $1,500 to $2,000 and applies to a handful of select instances, including fires and natural disasters. Theft, loss and repairs are excluded, leaving you on the hook for the full cost.
As one option, homeowner’s insurance carriers let policyholders add riders to extend coverage for certain high-dollar items. Jewelry riders compound to your homeowner’s policy to cover the cost of your full collection and anticipate more perils, including loss, theft and damage.
Another alternative is a specialty jewelry policy, obtained through an insurance agent or jewelry store. Premiums tend to be more per month, but coverage assists with complete replacement, repairs and anticipates more risks associated with antique and heirloom pieces. Especially if your jewelry collection has more variety, a specialty policy may be the best option.
Your Collection’s Value is Established
As with all types of insurance, your rider or specialty policy can cover too much, to the point you’re overpaying, or not offer enough coverage, so you’re paying some expenses out-of-pocket.
Jewelry insurance or a rider acts as financial preparation for these rare emergencies to help you preserve your collection. Yet to get to this point, you need to:
- Record and document everything you own. Vintage and heirloom jewelry may require more research than new pieces purchased. For every item you own, have a picture to indicate the quality and list the price, supported by receipts and gemstone certificates.
- Get an appraisal, especially if your collection consists primarily of heirlooms and vintage pieces for which you can’t establish values.
Coverage Prepares for Accidents and Protects Its Value
Not all damage to your jewelry has to be extreme. You remove a bracelet to swim, then realize you can’t find it later, or you might accidentally drop your engagement ring on the floor, cracking the stone or scratching the band.
Specialty jewelry policies and riders cover worldwide travel, so you are protected no matter where the damage occurred. More importantly, the policy gives you financial security: Should the unexpected happen at or away from home, you can get repairs done or purchase a replacement.
For many people, their jewelry has sentimental value. Coverage helps you repair the jewelry, preserve these special memories and eventually, pass down the piece as an heirloom.
You Don’t Have to Pay Out-of-Pocket for Repairs
Especially for jewelry worn every day, wear and tear can be expected. Yet, tarnishing and minor scratches add up over time. When the wear becomes noticeable, you may consider having the piece repaired. Specialty jewelry policies anticipate this and let you file a claim for getting your piece repaired. For example, after a prong bends, a stone comes loose, a chain breaks or an heirloom requires improvements to be wearable.
Hannoush Jewelers has a large selection of rings, bracelets, necklaces and other fine pieces for any occasion. Visit one of our Connecticut store locations today.
