Your Guide to Jewelry Insurance
Photo credit: @shopesqueleto & @laurenwolfjewelry
Everything you need to know about protecting your tiny treasures
Next to taxes, purchasing jewelry insurance might sound like the most tedious and convoluted task involved in adulting. It’s likely the very last thing on your mind when you’re wrapped up in the excitement of an engagement or treating yourself to a sparkly new treasure. But what if your ring slips off while swimming, or is stolen during a burglary? What if your diamond earring disappears and you have no idea what happened to it?
Jewelry insurance offers invaluable peace of mind that your prized possessions are protected in the event of bad luck or unfortunate circumstances. And while it may sound like a chore, once you know what to look for there are several insurance options available that are fast, easy, and painless. Read on to discover what type of insurance is right for you, and how you can get coverage.
Q. What does jewelry insurance cover?
A. Jewelry insurance can cover any loss, theft, damage, or even mysterious disappearance. Here's a breakdown of exactly what these circumstances mean:
Loss
Maybe you set your ring on the sink of a public restroom and forgot it, or maybe your bracelet fell off your wrist while jet skiing. Your valuable jewelry is gone and (unfortunately) it isn't coming back.
Theft
Theft describes when your jewelry is wrongfully taken from you, whether it’s stolen out of your home, your gym bag, or off your body.
Damage
While normal wear-and-tear (such as prongs wearing down over time) isn’t covered under most policies, some will cover accidental damage. An example would be snagging your ring on your sweater and causing the diamond to fall out, or knocking your ring on something and cracking the stone.
Mysterious Disappearance
Not all policies cover mysterious disappearance (and yes, that is the technical term), so be sure to read the fine print or ask your insurance agent if this is a circumstance you’d like your insurance to cover. “Disappearance” occurs when the jewelry is gone, but you have no idea what happened to it. It could be lost or stolen, you just can’t find it.
Q. What different types of jewelry insurance are there?
A. There are two types of insurance that cover fine jewelry: homeowner’s or renter’s insurance, and independent jewelry insurance.
Homeowner’s or Renter’s Insurance
A common misconception is that your existing homeowner’s or renter’s insurance policy already covers your fine jewelry. In fact, most policies have limitations and will only cover up to a certain amount (often between $1,000-$5,000). If you want to bundle your home and auto insurance with your jewelry insurance, you can call your insurer and “schedule” your jewelry (often called a rider or floater) for additional coverage.
Bundling may qualify you for a discount, but be aware that if you were to file a claim on the policy, it could cause your premiums (the amount you pay monthly or annually to the insurance company) could go up substantially. Additionally, these policies tend to lack coverage on damages and don’t always cover disappearances.
Independent Company that Specializes in Jewelry Insurance
If you ask your jeweler who they recommend for insurance, they will likely refer you to an independent company that specializes in jewelry insurance. Many of these companies now offer online quoting so you can get approved for a policy in a matter of minutes, or you can contact an agent for assistance. Private insurers tend to offer more substantial coverage for damages and disappearances.
Here’s a handy list of private insurance companies that offer online quoting:
Q. How much does jewelry insurance cost?
A. The price of your insurance premium will vary depending on the company and the value of the item(s) you are insuring. There are other risk factors taken into consideration, such as where you live (and theft rates in your area), and whether or not you have a deductible. Some companies will offer discounts for risk-reduction, like purchasing a home jewelry safe or installing an alarm system. Check with your chosen provider for specifics.
Generally, jewelry insurance will cost anywhere from 0.5% to 3% of the item’s value, paid annually. We did some research on how much a $10,000 diamond ring would cost to insure using our downtown Los Angeles zip code and selecting the 0 deductible option. Here’s what we found:
BriteCo: $10-15 monthly
Jeweler’s Mutual: $200 annually
Gemshield: $200 annually
Lavalier: $200 annually
According to popular insurance company, Progressive, adding a rider to your existing homeowner’s or renter’s policy typically costs between $1.50-$2.00 per $100 in value annually. So for an item valued at $10,000, you would pay approximately $150-$200 each year. Similarly, Geico and Travelers both state that additional jewelry coverage costs between 1-2% annually.
Q. What do I need to buy jewelry insurance?
A. Every insurance company will have different policies and requirements, so be sure to check the specifics with your insurer of choice. Many companies only require appraisals if the jewelry is over a certain dollar amount, and anything less can be insured with a receipt of purchase. If your jeweler provided you with a diamond certificate or grading report, that can also be shared with your insurance company (and can even help identify stolen stones).
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Pro tip: Even if your insurance company doesn’t require it, take photos of your jewelry. Smart phone photos work great– just make sure to get shots of the piece from different angles to capture every detail. In the event something were to happen, these photos can be incredibly helpful for remaking or purchasing an identical replacement of your beloved item.
Q. Where do I start?
A. Gather the relevant paperwork described above (appraisals, receipts, grading reports, and/or images), and start comparing options. If you currently have a homeowner’s or renter’s policy, give your agent a call and ask for a quote. Here is a quick list of questions you can refer to:
Does the policy cover damage?
Who chooses the jeweler to repair the damaged jewelry?
If my policy covers replacement, am I required to purchase the replacement from a specific retailer?
Are there any circumstances that would not be covered under my policy?
Is my jewelry covered when traveling out of the country?
Do you require an appraisal?
If you’re not sold on the coverage from your existing homeowner’s or renter’s insurance company, or if you don’t want to risk a claim increasing your premiums, check out one of the private insurers listed above. An online quote only takes a couple of minutes– just make sure to read up on what is and isn’t covered in the policy you choose.
A note about appraisals:
Like insurance policies, appraisals can be a bit confusing. You may notice that the appraised value is higher than what you actually paid for your jewelry. This is because the appraised value represents the retail replacement value, or what the jewelry would cost to remake or replace in the event it was lost. The appraisal value simply determines the maximum limit of liability, allowing wiggle room for inflation, labor, and other variable costs.
It’s important to go to a qualified appraiser—jewelry appraised too high could cost you more in premiums, while jewelry appraised too low could leave a coverage gap in the event you would need to file a claim. A reputable appraiser should have a graduate degree in gemology and usually is a member of a national appraisal society. Many jewelry stores have a qualified appraiser on staff or can connect you with one.
It’s a good idea to reappraise your jewelry every couple of years, as the value of fine jewelry tends to increase over time. Make sure you stay up to date on your jewelry’s value to avoid any coverage gaps.
Now that you have the scoop on jewelry insurance, it’s time to make your move. Nothing is as valuable as peace of mind when it comes to your valuables.
Editor: Rebecca Daly
Wordsmith: Sam Van deWalle
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