Insuring your luxury jewelry or timepieces isn’t an easy decision. First, you have to find out if your current homeowner’s insurance policy covers your high-priced jewelry and then you have to figure out how much it covers. Without dedicated jewelry insurance, your sentimental or expensive jewelry pieces are prone to theft, loss, or damage.
Your custom jewelry piece or luxury watch deserves to be protected from nearly any situation. Just imagine how much you’d miss your piece if you didn’t have a jewelry insurance policy. If you’re considering protecting your jewelry investment, here’s what you need to know.
What is Jewelry Insurance?
Jewelry insurance is typically not a part of your standard homeowner’s insurance policy. Even if jewelry insurance is included, homeowner’s insurance policies may only cover a range of a few hundred dollars or thousands for your loss or damage. Jewelry pieces may require more than your allotted coverage to repair or replace, meaning you’ll have to pay out-of-pocket costs.
Some homeowner insurance companies will offer floater, rider, or endorsement policies to cover high-ticket items like jewelry and watches. A floater policy will protect your heirloom or custom jewelry from accidental damage like drops or losing a ring in your kitchen sink. You can increase your covered limit, albeit, there will be some coverage exclusions.
A standalone jewelry policy from a dedicated third-party jeweler, for example, can cover more than your typical homeowner's insurance policy. When the average engagement ring costs about $5,000, jewelry insurance can prevent you from having to dip into your savings to repair or replace your precious jewelry or watch.
Why is Jewelry Insurance Important?
Jewelry insurance isn’t for everyone, but if you have expensive jewelry or jewelry passed down for generations, you may want to think twice before going without insurance. One of the most common reasons for jewelry insurance claims is a mysterious disappearance. That could mean losing your ring after heading to the beach or when you’re coming out of the pool.
Mysterious disappearances, theft, or damage may be covered under your home insurance claim, but that may also mean that your premiums will increase at the time of renewal. Standalone jewelry policies from trusted jewelers won’t affect your home insurance premiums and can provide more coverage benefits.
How Much Does Jewelry Insurance Cost?
Many jewelry owners make the mistake of thinking that they can’t afford jewelry insurance. Fortunately for many jewelry lovers, jewelry insurance is within reach for many budgets. Typically, jewelry insurance can cost you between one to two percent of the total value of your jewelry piece or watch. That means that a $15,000 wedding band could cost you $150 to $250 a month to protect it. Depending on your priorities and budget, you can cover your ring, bracelet, necklace, or watch with a relatively low monthly cost.
Many insurance companies will offer discounts to you if you take extra measures to protect your jewelry or watches. For example, you may get premium discounts if you keep your valuables in a bank safe or own a home alarm. The following factors will also affect the price of your insurance premiums:
- The number of pieces you’re insuring
- Reimbursement value (actual or replacement)
- Length of coverage
How to Insure Your Jewelry and Watches
You can either choose to get jewelry insurance added onto your existing homeowner's insurance policy or you can choose to be insured by a specialty jeweler. For homeowner’s policy add-ons, contact your insurer and let them know what accessories you need covered. Your rate will depend on your jewelry’s current value after an appraisal.
Most reputable jewelry insurance companies will require you to get a jewelry appraisal before coverage begins. An appraisal will determine your piece’s current value minus depreciation, not the value you paid for it. A comprehensive appraisal will include vital jewelry information including a stone’s cut, clarity, carat weight, color, and metal quality. Try to get an appraisal every two to three years to keep your current value current.
Specialty jewelry insurance from a jeweler or other third-party company can provide more coverage benefits including higher coverage limits, lower deductibles, and no negative impacts on your current homeowner's insurance after a claim. For example, specialty jewelry insurance may cover jewelry given as a gift, but standard homeowner's insurance doesn’t.
Get Your Jewelry Insured with Lewis Jewelers
Buying jewelry insurance for your jewelry or watches depends on your specific product and your budget. Ultimately, it’s up to you to decide how much you are willing to pay to protect your piece from damage or loss.
In order to avoid hefty out-of-pocket costs, consider a jewelry insurance policy from us. Whether you own a bright and shining Tacori ring or a breathtaking Simon G necklace, we can provide financing to get you the piece you love and insurance to keep it that way.
Get in touch with us today to learn more about your jewelry insurance options!