How Does Jewelry Insurance Work?

Jan 18, 2024 | Personal Insurance

If jewelry were only about aesthetics, we’d probably all just buy stainless steel. The reality is, most pieces of jewelry — especially the more expensive ones — carry just as much value in personal sentiment as they do in cash. It’s hard to put a price on a personal treasure. For the sake of financial protection, however, you may just have to.

The Basics of Jewelry Insurance

Jewelry insurance is just like home or car insurance: we all hope we won’t need it. Still, it’s better to be prepared, especially when it comes to high-value items like diamonds or gold. Whether it’s an engagement ring, a family heirloom, or just a special gift to a loved one, investing in jewelry insurance is probably a wise decision. Here’s what you need to know to get started.

Coverage Types

In general, there are two kinds of primary coverage types available for jewelry: all-risk coverage and named peril coverage. 

All-Risk Coverage: The all-risk variety is meant to cover a broad range of risks, from theft to damage to simple loss. 

Named Peril Coverage: On the other hand, “named peril” specifies the exact dangers that will be covered. This may even extend to specific types of damage.

Documentation and Appraisal

To set your jewelry insurance in stone, you’ll first need to provide documentation and appraisal of the insured items. This is to verify the value of your pieces so a reasonable coverage amount can be established. A reputable jeweler appraiser is your best bet to assess an accurate market value for your piece.

Agreed Value vs. Actual Cash Value

As we’ve already established, there’s more to a personal treasure than simple cash value. That’s why deciding on jewelry insurance often means accounting for both. 

Agreed Value: The agreed value is established with the insurer beforehand. Based on this agreement, a specific amount will be paid in the event of covered loss or damage.

Actual Cash Value: The cash value can vary depending on a few variables. Any payout will be dependent on the market value of the piece at the time of loss, accounting for depreciation.


Deductibles are a key part of virtually any insurance deal. If you’re new to the concept, a deductible is a specific amount of money you (the policyholder) will have to pay for an insured item or event before the coverage comes into play.

For things like jewelry, this might mean you have to pay for damage repairs yourself up to a certain point. Every policy is different, so be sure that you understand yours completely before signing on the dotted line.

Area of Coverage

Another potential factor to consider is the physical range in which your coverage has effect. Many jewelry insurance policies offer global protection, which may be ideal if you expect to travel. If you rarely take a specific piece of jewelry out of your home, you may be able to find a better deal with a smaller range of coverage.

Additional Factors

As with most kinds of insurance, there are any number of extra factors that might come into play when choosing your plan. For example, some policies may require a certain level of loss prevention efforts, and some may involve specific exclusions and limitations. 

Expert Advice for All Your Investments

When it comes to jewelry insurance, the most important thing is to understand your policy fully. Oftentimes, that means enlisting professional help from a knowledgeable insurance agent.

Here at Eber & Associates, we provide endless expertise for all kinds of insurance to help people like you find a deal that suits all their needs at an affordable cost. With our wide network of insurers to pull from, we’re confident we can find the perfect policy for you.
Get coverage you can count on. Contact Eber & Associates for a quote today.