Jewelery Insurance Facts Review – Forbes Advisor

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Maybe your grandma slips a $ 10,000 heirloom ruby ​​necklace into your Christmas stocking. Or maybe you’ll celebrate the New Year with a $ 5,000 engagement ring on your finger.

While you think these pieces are safe if they are hidden in a jewelry box, what if you lose the necklace in a house fire or the ring is stolen from your room? Will your home insurance cover these parts?

A standard home insurance policy generally does not fully cover high value jewelry. But you can add the right coverage if you know what to look for.

Let’s look at the three main methods of jewelry insurance foreclosure.

1. Basic home insurance for jewelry

A reference home insurance the policy covers jewelry, including loss caused by fire, tornado, theft or vandalism. But the policy normally places a limit of $ 1,500 on the theft of jewelry and watches, as well as precious and semi-precious stones. Why is the theft limit so low? Because jewelry is so easy to steal, according to the Insurance Information Institute, a professional group.

You can increase the home insurance coverage limits for jewelry, but even those dollar amounts may not be enough. For example, you might pay extra to increase the limits to $ 2,500 per coin and $ 5,000 in total, which may not be enough.

Too many homeowners find out too late that their standard home insurance won’t fully cover the loss of a $ 25,000 ring, says Bryan Howard, director of product management and personal insurance underwriting at Jewelers Mutual, an insurer that covers jewelry. “It’s a tough pill to swallow,” he says.

If you make a home insurance claim for theft or damage, such as fire damage, your insurance check will be reduced by the amount of your deductible.

2. Jewelry insurance float

You can get better jewelry insurance by supplementing your home coverage with something called a “personal items float,” which costs more than just increasing the coverage limits on your home policy.

A float can cover jewelry that exceeds the coverage limits of your home insurance policy. A float details each piece (like that ruby ​​necklace or engagement ring) and lists the types of losses that could be ruled out, like jewelry destroyed in a flood.

A deductible is generally not applied to a float.

A float provides jewelry insurance that is broader than a standard home insurance policy. For example, a float covers “accidental loss,” like dropping your engagement ring in the bathroom sink or leaving a necklace in a hotel room. When you buy a float, you need to have each detailed part appraised by a professional.

Floats typically cover objects no matter where they are, such as at home, on a plane to France, or in a hotel room in the Caribbean.

3. Stand-alone policy for jewelry

An independent jewelry insurance policy can be taken out with a company specializing in jewelry insurance.

According to the Insurance Information Institute, many stand-alone and floating policies offer similar components, although this varies from insurer to insurer. Similarities can include:

  • Coverage for a variety of issues, such as theft, accidental loss, and mysterious disappearance
  • Coverage for the loss of part of an adornment, such as a diamond earring
  • Coverage for jewelry you take with you on international trips
  • Not deductible

However, a specialty jewelry policy can go beyond a float by covering incidents that a traditional insurance policy might not cover, such as a chipped stone in a ring or a broken clasp on a necklace, according to Loretta. Worters, spokesperson for Insurance Information. Institute.

In many cases, the annual coverage of a specialist insurer costs 1 to 2% of the value of the jewel. Jewelers Mutual says that means a $ 5,000 engagement ring could be covered for $ 50 per year. The company says its franchise options include zero, $ 100, $ 250, and $ 500.

For high value jewelry, Jewelers Mutual may offer deductibles of $ 25,000, $ 50,000 or even $ 100,000. An appraisal determines the insurance limits for jewelry under a mutual jewelers insurance policy.

One of the advantages of a separate jewelry insurance policy is that claims are not on your home insurance record and therefore will not affect your future home insurance rates. Jewelers Mutual also allows you to choose the jeweler who repairs or replaces your lost or damaged item. (Other insurers may work with jewelry services to settle a claim, which means an insured might not be able to rely on their own jewelry store to repair or replace an item, says Don Elliott, claims manager. at Jewelers Mutual.)

“We have had a lot of success stories where we were able to save the day because the groom lost the [engagement] ring, he had coverage with Jewelers Mutual and we were able to quickly work with his jeweler to get an identical replacement, ”Elliott said.

BriteCo offers jewelry and watch insurance that covers the replacement cost of 125% of the item’s appraised value and no deductible.

PURE Insurance, which specializes in covering high net worth individuals, insures jewelry through its collections policies. It provides either a collection of jewelry whose values ​​have been detailed, or global coverage for a large collection of jewelry of lesser value. In many ways, its coverage is similar to that of Jewelers Mutual.

The jewelry insurance limits under PURE’s owner’s policy exceed those of typical homeowners’ coverage: a limit of $ 25,000 for a single stolen, lost or misplaced piece of jewelry, and an aggregate limit of $ 50,000. For collections over $ 50,000, a PURE customer can purchase “planned” coverage for higher value jewelry through PURE’s separate collections in addition to their regular PURE coverage for homeowners. With this added coverage, items should be professionally appraised.

To get the right jewelry insurance, Claire Marmion, director of PURE, recommends doing regular inventories and appraisals of your collection.

“People tend to underestimate the amount of jewelry they own. They live with it everyday, they love it, they take it along and they kind of forget what they have, ”says Marmion.

Summary: Jewelry Insurance Options

Tips to protect your jewelry

GEICO, one of the partners of Jewelers Mutual, gives these tips to protect jewelry:

  • Keep copies of purchase receipts.
  • Take pictures of your jewelry.
  • Store your valuable jewelry in a safe place, such as a safe. Howard of Jewelers Mutual suggests storing valuable jewelry in a home safe that’s bolted to the floor and out of sight.
  • Marmion from PURE says it can also be a good idea to keep jewelry in different places in your home to make it harder for thieves to find and steal all of your coins.
  • When traveling, bring only the jewelry you plan to wear. To take it a step further, Elliott recommends traveling only with costume jewelry that looks like more expensive pieces, rather than high value items.

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