Many people mistakenly believe that their homeowner’s insurance will cover all of their jewelry against any type of loss. Unfortunately this is not usually the case. While most homeowner’s insurance policies offer some coverage for jewelry, it typically only covers losses due to theft and offers a maximum coverage, usually up to $1,000. This means that if you accidentally drop your wedding ring into the garbage disposal or your darling toddler flushes your diamond earrings down the toilet, you may be out of luck.
Luckily, there are other options for protecting the value of your baubles. You can purchase a rider to your homeowner’s policy that will cover your jewelry or you can purchase a separate policy from a company that specializes in jewelry insurance. Some policies will require an appraisal for each piece of jewelry while others only require appraisals for pieces that exceed a set value. The Diamond World offers jewelry insurance appraisals. We are certified by the Gemological Institute of America.
When selecting a jewelry insurance policy, there are a few things you should be sure to ask your agent:
- Does the policy cover lost or damaged items or only theft?
- Is there a deductible?
- Are there any coverage exclusions, such as loss while traveling internationally?
- Do you need an appraisal for each piece of jewelry?
- Does the policy cover the full replacement cost or only a percentage?
- How will they replace the item? Will they give you a check or will they require you to purchase a replacement through a jeweler of their choosing?
- Will the policy pay for repairs to damaged jewelry?
The Diamond World recommends that you take photos of each piece of jewelry and store the photos with the appraisals and store receipts in a safe place. In the event of a loss this will make filing a claim easier.