Homeowner's Insurance To Protect Your Jewelry Investment
Consider purchasing Homeowner's Insurance this holiday season when giving jewelry as gifts.
If you’re thinking of getting something special for that special someone this Christmas, make sure you’re covered if it gets lost or stolen. Christmas time accounts for a large percentage of jewelry purchases, yet many consumers don’t know enough about protecting these valuables against costly losses.
Much of this jewelry—particularly diamond engagement rings—will be excluded from full coverage under standard homeowners and renters insurance policies. Most policies provide as little as $1,000 for loss by theft, and you will have to pay a deductible on top of that, leaving you with virtually nothing. Worse yet, if your ring simply disappears or if you lose the stone, most homeowners’ and renters’ policies provide little or no protection at all.
The average engagement ring value in the U.S. is $2,000, according to the most recent statistics from the Diamond Registry. However, for brides over the age of 25, that average climbs to about $3,000.
After you have chosen that very special diamond or other valuable jewel, your very next decision should be how you will insure it for any unexpected loss. An expensive loss could really take the sparkle out of the joyful times these jewels so often commemorate.
You usually should purchase a policy add-on called a “floater” to insure your fine jewelry against theft and damage. Annually, this coverage should cost about $5 to $10 per $1,000 in value. The best protection, though, is a personal jewelry policy.
You will need an appraisal of the piece to begin this process, but these policies—which provide coverage for loss by theft, damage or disappearance, and will pay for repair or replacement with like kind and quality—are very flexible and will allow you to add more jewelry as your collection increases.
OTHER IMPORTANT TIPS:
• Some insurance companies require an appraisal by an independent third party, or someone not working at the store where the jewelry was purchased. Ask your agent what your policy requires.
• When shopping for an appraisal, always ask trusted friends and family for a referral and look for credentials from the Gemological Institute of America, the American Society of Appraisers or the Accredited Gemologists Association.
• Fewer than 20 percent of jewelry stores have a properly credentialed gemologist on the premises. Shop around.
• Some insurance companies require that jewelry be stored in a safety deposit box while the owner is traveling or not wearing the item.
• Insurance companies report that most jewelry claims result from theft in the home by friends, family and service workers.
• Don’t forget to have your jewelry re-appraised when upgrading or adding additional stones.
Check with your local trusted insurance agent to get the coverage you’ll need. By using the proper homeowners’ insurance to protect your valuable jewelry investment your holiday season is sure to be a joyous one.
Happy Holidays from Crescenta Valley Insurance
