Congratulations, you’ve chosen your magnificent piece of jewelry and you feel amazing!
Now it’s time to make another strategically brilliant decision…
To Purchase or Not To Purchase Jewelry Insurance
Though making this decision isn’t as much fun as selecting your signature jewelry has been, the process is simple and straightforward.
Before getting to the specifics of jewelry insurance, let’s get the biggest worry out of the way: “What’s it going to cost me?”
Jewelry insurance generally costs between 1-2% of the value of the insured piece.
Called an endorsement or floater, it’s often added to your existing homeowner’s or renter’s insurance policy.
Your next question might be, “If your jewelry is already covered under your current policy, why should you consider adding jewelry insurance?”
Well, most likely, your homeowner’s or renter’s insurance only covers part of the value of your lost, stolen or damaged jewelry which can add injury to insult when trying to replace it.
Of course, the decision to purchase this additional insurance is up to you. In order to help you more easily choose which option is best for you, ask yourself what you’d do in the case of loss. Would you want to replace your piece? If so, would you be able to afford its identical twin? Or, perhaps an even more important question to ask yourself is, are you too worried to wear it due to fear of uninsured loss.
If any of your answers are “yes”, you should consider getting jewelry insurance. In the scheme of living expenses, jewelry insurance represents a minor annual cost, especially when compared to the assurance you may feel that your beloved ring, necklace, bracelet, etc. will be replaced if lost or stolen. If you decide to move forward with insuring your jewelry, your carrier will give you specific instructions on how to insure each piece.
What else can you do to protect yourself? Though this is not a comprehensive list, here are a few easy things you can do to protect your jewelry:
1) take your own photos of the pieces you’re having insured;
2) retain a copy of the store receipt;
3) ask the insurance company about the amount you’d receive (replacement v. appraised value), what types of losses are covered under the policy and whether you can use your preferred jeweler to replace the item;
4) ensure the correct person is carrying the insurance for the piece (it’s the person who has possession of the jewelry),
5) have your jewelry inspected regularly, and
6) consider keeping your jewelry in a safe when you’re not wearing it.
So, what types of jewelry insurance are available and which is best?
There are two basic types of jewelry insurance available: cash out jewelry insurance and replacement jewelry insurance.
Your jewelry is valuable and you should always insure it. At ID Jewelry we suggest cash out jewelry insurance as your best option. We recommend a company called Jewelers Mutual. This insurance pays you for the value of your lost, stolen, or damaged jewelry. There are two options when you purchase the cash out insurance option for your jewelry. One is that the policy pays the actual cash value of the jewelry and the other is that it pays to replace the jewelry. The difference is this. The actual cash value is what you paid for the jewelry minus the depreciation caused by wear and tear. Replacement value is what you need to pay today to replace the piece of jewelry.
In case you lose a piece of jewelry, if it is stolen, or if it is damaged you should always consider buying insurance. At ID Jewelry our second recommendation for insuring your jewelry is replacement insurance. We recommend My Zillion for replacement insurance. In this case, when your jewelry is damaged, lost, or stolen you will file a claim and when it is settled you will receive jewelry that is of the same type and quality. This will include the grading of diamonds for color, clarity, and cut as well as carat weight. With this type of jewelry insurance, you will have jewelry in the end that is indistinguishable from that which you insured.
As always, we’re here to help you care for and protect your purchase for many years to come. Please reach out to us if you have any questions or need further help.
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