Did you know that your homeowners or renters policy does not cover replacement for jewelry? Most typically pay a maximum of $1,000 for theft of jewelry. If you have valuable pieces or lots of jewelry, you will need separate protection.
What is covered?
Personal Jewelry Insurance provides repair or replacement for loss, theft and damage protection for your jewelry. It does not cover unset stones and irreplaceable items such as antiques or damaged items, items missing stones or pieces, broken watches, and non-jewelry items.
They are usually based on historical losses for the state or county in which the person possessing the jewelry resides. If you live in a high crime area, your rates will be higher.
Your policy should provide repair or replacement of your insured jewelry item with one of like quality.
Some companies require periodic inspections of your insured items. During inspections, your jeweler can identify small problems, such as loose claps, failing prongs or loose stones, before they become serious issues.
If you have a central station alarm system and insure $15,000 or more of personal jewelry, you may qualify for a discount. You will need to provide a copy of the alarm company’s maintenance agreement.
Important Questions to Ask
- Is there a deductible? If so, how much is it how does it affect your costs?
- Are photos of the jewelry required?
- Is an appraisal required? Are there only certain types of appraisers accepted?
- Are the items covered anywhere--including during domestic or international travel?
- Are items covered for full replacement cost? Must you replace the item, or can you get a cash settlement?
- Does the policy cover repairs to damaged jewelry?