Jewelry Insurance
by Vanessa
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Purchasing jewelry insurance is a good idea if you have valuable jewelry. One of the most common types of jewelry insurance is engagement ring insurance. Because this piece of jewelry often has such a great sentimental and financial value this is usually the main or only piece that is insured. But don’t forget to protect and insure other valuable jewelry you may own.
Jewelry Insurance Coverage
While you may already have some coverage if you have a home or renter’s policy, this may not be enough to effectively insure jewelry if you have a couple of valuable pieces or even a single diamond ring valued over $1,000. Under these policies all of your jewelry is covered under one lump sum amount, and these policies only cover a limited number of situations.
But you can add a jewelry rider, sometimes called a floater, onto one of these policies to cover specific pieces of jewelry. Adding a jewelry rider will give you much greater coverage with fewer exclusions and higher limits.
The other option is to look for a jewelry insurance policy through specified jewelry insurance companies or a company that specializes in jewelry coverage like diamond ring insurance. This type of coverage is often referred to as a standalone personal jewelry insurance policy. This means that the coverage isn’t tied to another type of insurance; it is a separate policy. This allows you to insure specific pieces of jewelry.
Jewelry Insurance Settlement Options
When insuring jewelry it is important to understand the options for loss settlement. In other words how will they handle a claim for lost jewelry or damaged jewelry. The options can include:
- repairing the jewelry
- replacing it with an equivalent type and quality
- paying you an amount that would be cash equivalent to what the company would have paid to replace or repair the jewelry
- paying the actual cash value (ACV)
Different companies offer different options. Make sure you understand how the jewelry insurance settlement claim will be handled and what the settlement options are before you commit to a jewelry insurance policy.
If you know you want a policy that offers actual cash value shop around until you find a company that offers this. Also ask questions so you understand the terms used, for instance Actual Cash Value typically means the cost to replace the jewelry minus depreciation at the time the jewelry was lost.
Jewelry Appraisals
Before you can insure jewelry you will need a jewelry appraisal. The insurance company may have a list of appraisers they use or they will approve, but you may want to find an independent qualified jewelry appraiser. When it comes to choosing engagement ring insurance, wedding ring insurance or insurance for heirloom or other valuable jewelry you want to make sure you have a trusted jewelry appraiser valuing these important items.
Because the value of things like diamonds, silver and gold change with the current market it is a good idea to update your appraisal every few years, especially when there has been a lot of market fluctuations for these precious commodities.
You want an accurate appraisal because your jewelry insurance premiums and coverage will be based on the value of the jewelry.
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