The ABCs of Insurance Coverage for Jewelry

2018-02-09
By: Denise Koslowsky

Last Valentine’s Day we spent roughly $4 Billion on gifts of jewelry.  Since sparkling gifts have become such a popular gift item at this time of year we thought we would do our best to review the ABCs of Insurance Coverage for jewelry.

A is for Appraisals

We cannot understate the importance of have regular appraisals for your precious pieces.  The markets for gold and precious stones fluctuate frequently so we recommend re-appraising every 3 – 5 years.  If you do not have an up to date appraisal and your jewelry is lost or stolen, you may not be able to receive the full value of the item when you file a claim.  If you have no appraisal not only do you run the risk of recouping less than the full value of the item, the carrier will request one and the result could be a delay in payment of the claim.

B is for Background Checks
No one wants to consider that their domestic staff may one day steal from them but sadly it is not uncommon.  If you have a maid, nanny or other domestic worker, be sure to insist on a background check.

C is for Cache
If you have a soft spot for beautiful jewelry we encourage you to place your most valuable pieces in a cache for safe keeping.  When it comes to storing your jewelry there are a few important things to keep in mind.  The safest place for them may be a bank safe, but if you opt for a home storage solution you will want to be sure that the safe is either heavier than 750 pounds or bolted to the floor in order to deter thieves.  It is important to note that many insurers require a photo showing that the safe is bolted.

D is for Disclose
Be sure that when you add a piece of jewelry to your collection you disclose that piece of information to your insurance company.  Keep in mind that the more information your insurance agent has about your life and your possessions, the better they are able to protect you and the things you care about.

E is for Enhancement

Most conventional homeowner’s policies severely limit coverage for jewelry. Most only offer the restrictive Actual Cash Value form, which allows for depreciation and disagreements regarding the valuation and a deductible is often imposed. Coverage may be territorial or to subject to limited perils. The smart money recommends enhancing your homeowner’s policy by extending coverage for jewelry.  With our partner companies, coverage is worldwide. There is no deductible and the Open Perils form is used. Call us to assist you in determining the enhancement option(s) that best suit your needs.

• With blanket coverage you receive an overall coverage limit for your jewelry item(s). There is a maximum limit per item. At the time of a loss, as no items are listed, you must identify and verify the value of the item.
• With scheduled coverage your jewelry items are specifically listed along with the replacement cost per item. With our carriers, the Agreed Value form is used. In other words the value is pre-agreed prior to a loss. There is no deductible and coverage is worldwide.

F is for Fix
If you discover a loose stone on your engagement ring or notice that the clasp of your necklace is not working as well as it should we urge you to have it fixed right away.  It is better to have your jewelry repaired and restored rather than losing it and having to deal with filing a claim.

Advocate Brokerage believes in educating our clients so that they have the information needed to make important decisions when it comes to protecting their possessions.  We hope this blog serves as a gentle reminder to protect your newly purchased jewelry. Now might be a good time for you to have a conversation with us about a Valuable Items or Collections Policy. We love hearing from you!