The Importance of Jewelry Insurance

If television commercials and store decorations are any indication, the holidays are upon us! This is a time when most of us spend our free time shopping for gifts for special people in our lives. Some of those gifts are sure to include jewelry, watches and engagement rings. In fact, according to Statista.com, at least 18% of annual jewelry sales occur during the month of December. That means there’s no time like the present to educate yourself on the importance of jewelry insurance coverage.

What should you know about jewelry insurance? Here’s a quick primer.

1. Jewelry insurance is not expensive.
The annual premium for a jewelry insurance policy usually falls between 1 and 3 percent of the value of the item(s) insured, which is a small amount for you to pay to fully protect your valuable jewelry.

2. Homeowner’s and renter’s policies are not enough.
If you have a homeowners or renters policy, you may assume your jewelry is already covered. These policies, however, usually impose caps on how much they will pay in the event of a loss. If the jewelry is worth more than a few thousand dollars, this type of policy would probably not be sufficient.

3. There’s a difference between riders and dedicated policies.
You may assume that the best or only way to insure their jewelry is to add a rider to their homeowner’s or renter’s policy. Riders may offer higher limits and broader coverage; however, they may not be designed specifically for jewelry. If an item is worth insuring, it makes more sense to go with a policy designed for that purpose.

4. Jewelry insurance is worth the investment.
Jewelry insurance can cover a wide range of partial and complete losses – from “mysterious disappearance” to chipped stones. It also provides a great deal of choice, allowing  to have the piece recreated by a custom designer, or repaired by the jeweler of  choice. Depending on your needs, there is an affordable policy that will fit the bill – and with a gift as precious and meaningful as jewelry often is, it’s well worth the effort.

Adapted from an article from Big I Markets.