Have you ever lost a ring? Or a necklace?
What about a gem-encrusted brooch?
Losing a piece of jewelry, no matter what it is can be devastating. Not only because of the financial cost, but also because of the sentimental value. Usually, when a piece is gifted, we are unable to replace it or recreate the moment we received it. This is especially true in the case of custom-made jewelry.
So should you look into jewelry insurance?
The short answer is yes and here’s why.
We take off our jewelry often, be it to take a shower, to wash our hands, to perform certain job duties. Whatever the case, we run the risk of misplacing our pieces each time we take them off. The chances of losing your piece increases if you take them off in public places like the gym or at work.
Worse, there is such a thing as mysterious disappearance. This is when you can’t find your jewelry, but you weren’t responsible for misplacing it and you don’t know if someone actually stole it.
While we hope that these what-ifs never happen to you. We do recommend being prepared.
Most jewelry stores offer a warranty with your purchase, but that typically only covers repairs and defects. Not theft or loss. Which is another reason why getting jewelry insurance is a must.
But, before you can take out a policy, it’s important to have each piece appraised by a reputable jeweler so that you can know the true replacement value of your pieces. This appraisal process should be conducted every 5 years in order to be up-to-date with market trends.
So how much does jewelry insurance cost? The exact answer to that varies depending on what you decide to insure and where you live. It’s a lot like car insurance. According to Ritani, the cost of coverage hovers between 1-2% of the jewelry’s total value.
It’s also important that you don’t rely on homeowner’s insurance for jewelry insurance because it doesn’t cover jewelry or high-value, non-essential items. This means that if you’re counting on homeowner’s insurance to cover your jewelry in the event of a burglary, chances are they won’t and even if they do, they will most likely not reimburse you for what it’s worth.
While we don’t endorse any specific jewelry insurance, we do recommend doing a robust internet search for different companies that offer at least 100% reimbursement of the appraisal value (its a plus if they reimburse more), offer free annual insurance updates, a zero deductible, and covers mysterious disappearance.
If you’re unable to purchase jewelry insurance or simply don’t want to. There are other ways that you can protect your investment. You can purchase a safe deposit box at your local bank branch where you can store your jewelry, or you can also buy a safe that can be easily stored in a drawer, closet, or under the bed.
No matter what you decide, pick a solution that you’ll feel comfortable with.