Some of your home’s most priceless possessions, like a black pearl necklace you bought in Tahiti, a vintage Rolex, or a diamond engagement ring, might not be insured. The majority of people probably have a comprehensive insurance policy that covers their home and belongings, but having homeowners or renter’s insurance does not imply that everything in your home is covered.
Actually, some policies expressly forbid the possession of jewelry and other valuables (musical instruments, artwork, and furs among them). Other policies only provide coverage for certain events up to a certain dollar amount. This level of coverage may be woefully insufficient, especially if you want to replace the kind of thing that has seen a significant increase in value since you bought it.
What does jewelry insurance serve to protect?
If you own a significant amount of these kinds of assets, jewelry insurance is necessary. When traditional insurance coverage expires, a “rider” or, more specifically, a “floater” (which targets small, moveable items) takes over and typically protects the insured item against fire, loss, theft, or damage. Be aware that other valuables that aren’t considered jewelry may not be covered by these policies. Instead, one of the top watch insurance providers may be required to provide coverage for a watch.
The majority of large insurers do not provide jewelry coverage as a separate product (an underlying property insurance policy is required). However, owners of valuables have the option of adding coverage to their current homeowners insurance plan. In fact, the majority of the more well-known insurers demand extra care for expensive valuables.
What Is Covered by Jewelry Insurance?
Damage, loss, or theft to jewelry is typically covered by a separate insurance policy. Only when a problem covered by the policy, such as a fire, is to blame for the damage to the jewelry will it be covered.
Many different types of jewelry, including wedding rings, engagement rings, earrings, watches, and antique jewelry, are insured.
What Excludes From Jewelry Insurance?
Not all types of losses are covered by jewelry insurance. In most cases, a jewelry insurance policy excludes coverage for wear and tear, intentional damage, pest damage, and pre-existing jewelry damage.
How much does insurance for jewelry cost?
The average cost of a separate jewelry insurance policy is 1% to 2% of the jewelry’s value. Here’s an illustration: If your ring costs $10,000, you might pay $100 or $200 a year to cover it.
In that case, there is no extra charge for jewelry coverage. However, if you own expensive jewelry that will take up the majority of your personal property limit, that coverage might not be adequate for you.
Before buying jewelry insurance, make sure to check the following.
* Standard jewelry homeowners insurance.
Jewelry losses due to fire, tornado, theft, or vandalism are all covered by a typical homeowners insurance policy. However, the policy typically places a $1,500 cap on jewelry, watch, and precious and semi-precious stone theft. Why is there such a low theft limit? because it is so simple to steal jewelry, claims the Insurance Information Institute, a trade organization.
Even with higher dollar limits, your home insurance coverage for jewelry might not be enough. You could spend more money to increase the limits, for example, to $2,500 per piece and $5,000 overall—which might still not be enough.
According to Bryan Howard, director of product management and personal lines underwriting at Jewelers Mutual, an insurer that covers jewelry, too many homeowners find out too late that their standard He remarks, “That’s a hard pill to swallow.”
The amount of your deductible will be deducted from your insurance payout if you file a claim with your homeowner’s insurance for theft or damage.
* A jewelry insurance floater.
Better jewelry insurance can be obtained by adding a “personal articles floater” to your homeowners policy, which is more expensive than simply increasing the policy’s coverage limits.
Jewelry that is worth more than the limits of your homeowners insurance can be covered by a floater. Each item (like that ruby necklace or engagement ring) is listed item by item on a floater, along with any losses that might not be covered, like jewelry lost in a flood. A floater typically does not have a deductible.
A floater offers more comprehensive jewelry insurance than a typical homeowners policy. For instance, a floater protects against “accidental losses” like leaving a necklace in a hotel room or dropping your engagement ring in the bathroom sink. You must have each itemized piece of a floater professionally appraised before purchasing it.
Items are typically covered by floaters no matter where they are, including in your home, on a flight to France, or in a Caribbean hotel room.
* A stand-alone insurance policy for jewelry.
A business that specializes in insuring jewelry can sell you a stand-alone jewelry insurance policy. A separate jewelry insurance policy has the benefit of keeping claims off your home insurance record, which keeps them from impacting your rates in the future.
Although this varies from insurer to insurer, the Insurance Information Institute states that many stand-alone policies and floaters offer comparable components. The resemblances could include:
- Protection against a range of issues, including theft, unintentional loss, and enigmatic disappearance
- Compensation for the loss of a component of a set, like a single diamond earring
- No deductions
According to the Insurance Information Institute, a specialized jewelry policy may go above and beyond a floater by covering incidents that a conventional insurance policy might not cover.
Top 3 affordable jewelry insurance providers
Of the insurers we evaluated, GemShield has one of the simplest quote and application processes. Without giving any personal information, you can receive a quote in less than a minute, or if you need assistance, you can speak with an agent. Additionally, you can apply online and receive coverage right away. Online, you can even file claims and ask for policy modifications. However, for items worth $5,000 or more, you’ll need an appraisal. Items under $5,000 may be accepted with a sales receipt.
There are only a few exclusions from GemShield’s comprehensive, nationwide coverage, including intentional loss or damage, manufacturer’s defects, and events like war or nuclear hazard. Even after you add the piece to your policy, new jewelry you purchase even has limited coverage for 30 days.
2. Jewelers Mutual
The insurer’s simple online application and quote processes made it our top choice for the best watch insurance. For all this convenience, you might have to pay a slightly higher premium. You don’t need to provide personal information to get a quote, and you don’t need to provide an appraisal to get coverage. In addition, Jewelers Mutual offers premium discounts if you have a home security system and has very high coverage limits in comparison to other insurers.
Wax offered the most affordable premiums for watches and engagement rings among the jeweler insurance companies we evaluated. For those looking to insure a sizable collection of jewelry and collectibles, the company—which provides coverage through Chubb—is a great option.
There are no coverage caps, and only items worth $100,000 or more are subject to the need for an appraisal. Once you have a policy, you can get the Wax Insurance app and take pictures of each new piece of jewelry you want to add to your collection. Using the Wax app, you can get a quote and pay for more coverage in a matter of minutes. You may even be able to borrow money against your collection in some states.
You’ll probably get a better deal overall if you buy all of your insurance from the same company, including your property, auto, life, and health coverage.
You might be able to purchase stand-alone coverage from a company that specializes in insuring jewelry if you don’t have homeowners or renter’s insurance. Some jewelers provide these policies or can suggest a business that does.