An investment in jewelry is valuable and it needs to be insured, in the event of a loss or theft. Jewelry insurance is now offered under exclusive packages and at premiums that are worth it.
The purchase of authentic platinum, gold, silver, or gem jewelry involves a lot of careful consideration, and is a major investment in one’s life. Surprisingly, the typical homeowner’s or renter’s insurance policies do not cover the loss or theft of your belongings completely, under a single ‘full coverage’ plan. Also, there are policies designed to include theft, but not loss, and this makes it necessary to research and find out about the other options you have to protect your investment which is usually the family’s heirloom. Loss or theft are not preplanned occurrences, and hence, it is always better to be safe than sorry.
Factors to Consider
First, check if these valuables are covered under your existing home policy, if any. In this way, you can save on an unnecessary additional cover. Check whether the premium amount has to be paid monthly, quarterly, biannually, or annually. The clubbed coverage within a typical homeowner’s or renter’s policy is never more than USD 1000. Therefore, consider a policy that covers loss of jewelry for reasons other than theft, too, like in the case of loss due to damage. It pays to conduct a prior research on the exclusive plans on offer.
You should always read the policy document carefully and inquire with the agent about the different types of losses that are covered in the standard policy. Remember that coverage may not be available for loose diamonds and gems, unset stones, damaged items, or even antique jewelry, in some cases. In case of a doubt or any special need, you can purchase additional insurance.
However, you should do so only after a personal meeting with the agent and a good understanding of the plan. Also, check if there is a deductible and its minimum amount. Remember, raising or lowering the deductible does affect the premium you pay. Lastly, confirm whether an appraisal is required to establish the true value, prior to signing the dotted line.
There are different types of coverage offered by various companies. Many of them cover the loss, irrespective of where it takes place. Some also cover a loss that occurs during domestic or international travel. There are options for full replacement of actual cost via a cash settlement, and repairs to damaged items. Some provide cover specifically for jewelry only and make their policies available through independent agents and retailers.
It is recommended to get your valuables authenticated by a licensed appraiser only. If possible, get them estimated from one trusted person, even though, you may have purchased the valuables from multiple retailers. A good jeweler will enable you to identify loose stones, faulty clasps, worn prongs, and other minute issues. He will also be able to provide you the approximate current value and the corresponding coverage that you need to invest in. Moreover, inspections are a great way to have your valuables cleaned and shined.
Disclaimer: This article is for reference purposes only and does not directly recommend any specific financial course of action.