Jewelry can be so much more than precious stones and metals. It might be your grandmother’s beloved wedding set or a grandfather’s retirement watch. It might be the ring you treated yourself to when you started a new job or earrings from a long-lost love.
Jewelry serves as a reminder of remarkable people, places, and times. It is sentimental, valuable, and deserves protection.
Does that mean you should purchase jewelry insurance for your collection? Sometimes. Whether or not jewelry insurance is worth it depends on your tolerance for risk, financial situation, and jewelry collection. Learn when jewelry insurance is worth it and when you may be better off without it.
When Is Jewelry Insurance Worth It?
Not all jewelry requires insurance coverage, but it can be wise to insure certain pieces. When deciding if you need jewelry insurance, you’ll want to consider the collection’s value, sentimentality, and replacement costs.
Value
You might want to insure any jewelry that exceeds the coverage offered by most standard homeowners’ or renters’ policies. All policies are different, but most offer around $1,500 worth of coverage in total, not per piece. Consider additional coverage if your collection is worth more than that.
Sentimentality
Some pieces may not be worth a lot, but they might be priceless in sentimental value. Insurance can give you peace of mind. If something happens to the piece, you might be unable to replace it with an identical item, but you won’t be out financially.
Replacement Costs
Consider how much it would cost to replace your jewelry collection if something happened. If you can comfortably cover the out-of-pocket replacement costs, you may not want to bother with insurance. Opt for insurance if your collection is worth more than you could comfortably pay.
Jewelry insurance is usually relatively affordable, averaging about 1-2% of the value of the jewelry per year. For example, if you have a necklace worth $15,000, you can expect to pay between $150 and $300 annually to insure it. That can be very affordable peace of mind when wearing a gorgeous piece out to dinner or on vacation.
Does My Homeowners’ or Renters’ Insurance Cover Jewelry?
Most homeowners’ and renters’ insurance policies offer some coverage for jewelry, but it’s usually not very much. You’ll want to check your policy for limitations such as:
- Coverage — Most home insurance policies will cover around $1,500 worth of jewelry replacement. Remember that this is the total amount, not the coverage per piece. If your $5,000 diamond bracelet and $2,500 earrings are stolen, you only get $1,500 for both pieces. You’ll also probably have to pay a deductible on your claim, meaning you could pay a $500 deductible to get $1,000 for your stolen items.
- Covered Perils — Most homeowners and renters insurance policies cover specific events such as fire, theft, or extreme weather. These are the “covered perils” of the policy. Accidental damage or dropping your wedding ring in the sea on a snorkeling trip aren’t covered.
For many people, the coverage offered by a standard homeowners’ or renters’ insurance policy isn’t enough to cover the value of their jewelry. If you have pieces that you want to protect, then you’ll want to get an additional jewelry insurance policy.
How to Insure Your Jewelry
If your current insurance coverage falls short in the jewelry category, there are a few ways to increase your coverage. Many insurance companies allow you to add a “personal articles floater” to your existing homeowners’ policy. The floater covers your valuable belongings, including jewelry, that might exceed the standard policy limits. This can be a very cost-effective way to cover your jewelry.
You can also purchase a stand-alone jewelry insurance policy from a company specializing in jewelry insurance. These policies offer broader coverage than a standard homeowners’ insurance policy, like accidental damage and loss (even while on vacation). The benefit of these policies is that they aren’t tied to your homeowners’ or renters’ insurance, so your premiums won’t go up if you need to make a claim.
For any insurance option, you’ll need to have your jewelry professionally appraised to determine a replacement value. You may want to update your appraisals periodically, as jewelry can appreciate over time.
Eber & Associates Can Protect Your Precious Belongings
Eber & Associates understands the sentimental and financial value jewelry holds. Our team can help you find the best insurance solution, giving you the right coverage at a fair price. You’ll be able to wear your cherished pieces confidently, knowing they are protected against any unexpected event.
Don’t put your jewelry at risk. Contact Eber & Associates today to speak to our knowledgeable insurance specialists and get a free quote on jewelry insurance.
