Fine Jewelry Insurance

You went to a high end jewelry store that makes custom engagement rings for the love of your life. You popped the question and she is now your fiance. Two months later, she accidently loses the ring. Now what? Thanks goodness she has homeowners insurance because you paid a whopping $25,000 for that ring. 

You might be now shocked to learn that your homeowners insurance or renters insurance policy probably does not offer full coverage for any custom engagement rings and other fine jewelry.  You might assume your fine jewelry is fully covered by your homeowners insurance policy. Most policies do cover jewelry but they will only pay a certain limit on it and it in the case of valuable jewelry it is much lower than the actual value of fine jewelry. 

Why wouldn’t your insurance pay the full value of all of your fine jewelry if its stolen from your home? Certain types of property have lower limits on them and jewelry is one of those types of property. Although your policy's total personal property limit might be $100,000, the limit for custom engagement rings and other jewelry might be as low as $1,000. Read your policy and find the limit for jewelry or ask your agent to help you. You may need specialized fine jewelry insurance.

A renters insurance policy might be only $500. Does your homeowners insurance policy cover a jewelry loss for reasons other than theft? How about lost or damaged items? Read your policy carefully and ask your insurance agent to clarify the types of losses that are covered on your standard policy. This is always best done BEFORE a loss though.

You can usually purchase additional fine jewelry insurance for any custom engagement rings and your other fine jewelry but here are some questions to ask:

• Is there a deductible? If so, how much is it and how does raising or lowering the deductible affect your policy costs?
• Is an appraisal required prior to obtaining insurance? What type of appraiser can you go to.
• Are the items covered no matter where they take place? Would the policy cover you for a loss that occurs overseas?
• Are items covered for full replacement cost? Is it actual cash value or will the company replace the item.
• Does the policy cover repairs to damaged jewelry?
• Keep Fine Jewelry locked away . Be sure to keep valuable jewelry protected in a safe at home. If you own jewelry that you rarely wear (such as family heirlooms), you might consider locking it up in a safety deposit box.
• Review coverage regularly: Depending on how often you buy jewelry, you should look over your jewelry insurance at least once every two years to make sure it is up to date. If you sell any jewelry or purchase new high-value pieces, its important let your agent know ASAP.

Whether you buy custom engagement rings and lots of other fine jewelry or you only have a couple of valuable pieces, it is important to protect the insurable value of that jewelry. You won't be able to do that with a standard homeowners insurance policy that has no special coverages for jewelry. For this you need fine jewelry insurance or you need to at least add this jewelry (to get complete coverage) to your homeowners insurance policy. You don't want to be caught well short after a loss.