Ask the Advisor: Jewelry Matters
By Jennifer Craig Ewers, Webber and Grinnell Insurance
If you are giving your Valentine a valuable piece of jewelry this season, you’ll want to cover it with more than a bow! Once it’s unwrapped, chances are your homeowners' policy is not enough to replace it if it is lost, stolen or damaged.
1) Is Jewelry Insurance really necessary?
The majority of jewelry is uninsured or underinsured and an engagement ring may be the most expensive thing a couple owns. Further, as the costs of precious metals, diamonds and gems increase, costs to produce new jewelry or replace existing pieces increase too.
2) Why isn’t homeowners’ insurance enough?
Many people think a homeowner’s policy fully protects them from theft, damage or mysterious disappearance of jewelry. The fact is most homeowner’s policies provide limited coverage for lost or misplaced items. And, limits on standard homeowners’ policies for jewelry range from $1-5K plus a deductible – which would rarely cover the average price of a diamond engagement ring purchased today. So, if you misplace or lose one of your prized diamond earrings while on vacation, most policies will not cover the loss.
3) What is the solution?
Purchasing an insurance floater would typically cover losses or damage, anywhere in the world, including fire and theft.
4) What about appraisals?
When you purchase jewelry insurance, you will be asked to verify the description of your jewelry and its fair market value. Having a current appraisal (3-4 years old) can help ensure a prompt and fair settlement in the event of a claim. Because some insurers will insist on purchasing a replacement on your behalf, the replacement may not match the original’s size and shape, quality, cut or setting without an up-to-date appraisal!
If you would like to learn more about how to best cover your jewelry, please feel free to contact us.