Have you ever thought about why we wear jewelry?
It’s because their value goes beyond money. Wearing jewelry is a way of cherishing the special moments of our life.
When you want to keep these moments forever, getting a jewelry insurance policy doesn’t seem so farfetched.
But, as much as jewelry is a token of our happiness, it is also a magnet for thieves. So it’s
best if you have a backup plan. Here are 5 aspects you should know before getting started.
1. You May Already Have An Insurance For Jewelry
Most people have an unscheduled insurance policy. That means they are insured for any lost property within a specified sum.
First, you need to check how much your current homeowner’s insurance covers. The amount varies mainly between $1,000 and $15,000, regarding unscheduled property. You can include jewelry in this category.
It may seem like great news, but there are a lot of goods to cram under that ‘unscheduled’ label. If your jewelry isn’t expensive and you can safely put it into the ‘unscheduled’ category, you are covered. If not, you need to be aware of the information below.
2. Scheduled Jewelry Insurance
‘Scheduled’ means you get a separate insurance policy. The regular one may prove insufficient for pieces worth over $1,000.
As for costs, you pay $1 or $2 for $100 per year. So, with $100 or $200 a year, you cover $10,000 worth of jewelry.
You’ll need to prioritize and decide for how many valuables you are willing to pay. In a way, jewelry is among the items that are the hardest to replace and the easiest to lose.
If you really think about it, you can see the point of a scheduled insurance for that dazzling engagement ring you don’t want to lose.
3. What You Need To Insure Your Jewelry
Prepare to put in a little effort for your jewelry insurance and be aware of the following requirements:
The original receipt (for recent purchases)Certificates for larger gemstones. Look for certification from reputable organizations, like the GIA and the EGL. Appraisal from a certified appraiser Don’t forget to take pictures of all your pieces.
Appraisers photograph them, but it’ll be useful to have a record of all the pieces.
4. The Importance of the Appraisal
As stated above, you need to get certified appraisal. But what does certified mean?
You should look for accredited sources like the National Association of Jewelry Appraisers.
The appraisal is a critical point in getting your jewelry insurance. It establishes the exact value of the item for it to be replaced most accurately. Following the appraisal, you’ll get a report containing photos and detailed description.
One mention here: the value of the items doesn’t last forever. Take notice that the market is continually changing and so it is recommended you get a reappraisal every eighteen months.
5. Consult With Your Agent
Your insurance agent is best certified to know the ins and outs of this process. Make sure you ask him several questions, including:
In what cases are you covered? Make sure you are clear on the circumstances you’ll be needing that paper. Some policies only cover theft, not chipped gemstones or accidental loss.How will custom made jewelry be replicated or replaced?Is partial loss covered?
With everything cleared out, the question is: when is the right time to get a ‘standalone’ kind of insurance?
The answer is: straight after the purchase. If you are the kind of person who wants to have everything sorted out, you are aware that the unexpected can hit anytime.