Most conventional homeowner’s policies offer limited coverage for jewelry, and that limited coverage is subject to the policy deductible. For this reason, we recommend that valuable jewelry is covered under a Valuable Items Policy (also sometimes referred to as a Collections Policy or an Inland Marine Policy).
There are two main types of jewelry coverage:
Most carriers only offer the restrictive Actual Cash Value form, which allows for depreciation, often imposes a deductible, and can lead to disagreements regarding the valuation. Additionally, coverage may be territorial (only offered when you are at home in the US).
Another option we see is blanket coverage, which means that you receive an overall coverage limit for your jewelry and depending on the insurance carrier there is often a maximum limit per item (but not always). At the time of loss, you will have to identify and verify the value of the item.
We recommend enhancing your coverage by scheduling your jewelry items. This way your jewelry items are specifically listed along with the Agreed Value per item. This means that the value is pre-agreed prior to a loss, coverage is worldwide, and there is no deductible.
Appraisals not only help you understand the worth of your valuables, they are an important tool to help you make smart decisions regarding their protection. The cost of gems and platinum and gold fluctuate. By keeping current on your appraisals, you ensure that the agreed values are accurate.
Keep in mind that not all appraisers have an in-depth knowledge of every type of valuable, so make sure yours is an expert in the field.
Below are some additional guidelines:
There are different types of coverage in which the details vary from carrier to carrier so it is recommended that you speak with your agent and share a bit about your collection so that the coverage can be tailored to your specific needs. If you have questions about protecting your beloved jewelry, please get in touch with us at 914-723-7100.