Expensive rings, necklaces, earrings, watches, bracelets and other items need separate coverage.
Engagement rings, great-grandmother’s necklace and other expensive items can benefit from jewelry insurance coverage. Their coverage under homeowners or renters policies is very limited. Often, there is inadequate protection offered for the full value of a high-value piece.
Renters and homeowners policies offer protection but only up to a certain limit for all pieces.
Homeowners and renters insurance policies will usually limit jewelry coverage at around $1,000 to $5,000. However when it comes to more expensive pieces, this is clearly not enough. This is particularly true when there are multiple high-value pieces. They require more specialized coverage in the form of riders on existing property policies, or jewelry insurance in the case of higher value pieces.
For this reason, many insurers offer the additional special policy for high-value pieces that need their own coverage against loss, theft or even damage. The coverage will usually cost about 1 to 2 percent of the total value of each item in annual premiums.
Beyond jewelry insurance, most insurers also recommend taking extra precautions to protect high-value pieces.
In order to get the most out of a policy and to reduce the need to make a claim in the first place, insurers have certain recommendations for owners. These are a few easy steps to offer added protection for special items worth the extra coverage.
• Take pictures and/or video in order to keep a visual record of the piece you’re covering. Keep those records in cloud storage so that it can be accessed from anywhere and you’re not reliant on hard copies of an image that could be destroyed in the event of a fire, flood or other catastrophe.
• Hire an expert to conduct an expert appraisal. Get the appraisal in writing and keep that along with any receipts you have if you have retained them from the time of purchase. Scan those documents and keep them with the visual records.
• Keep the jewelry in a safe deposit box or a fireproof safe when it is not being worn.
• Visit a jeweler once to twice per year – depending on how much it is worn – to have it professionally inspected and cleaned.
• Have the value of your jewelry re-appraised or re-evaluated every couple of years. Adjust your jewelry insurance coverage as needed to reflect the current value. This ensures adequate protection.