Jewelry insurance rates
Jewelry Insurance Protects All That Glitters
About jewelry insurance
If your favorite piece of jewelry disappeared or was badly damaged, would you feel:
- Devastated because of its sentimental value?
- Crushed because you couldn’t afford to replace or repair it?
- Reluctant to wear or buy good jewelry again in the future?
Where to buy jewelry insurance
Add special jewelry coverage to your home or renters policy, usually called a “scheduled” floater, rider or endorsement. These policies require you to itemize specific pieces of jewelry, along with their replacement values. They typically have higher coverage limits than standard homeowners or renters policies, as well as coverage for more circumstances, and they often don’t charge a deductible.
Companies that specialize in insuring jewelry often offer more comprehensive and customizable coverage. You can snag coverage with more options and higher limits than the coverage offered by your current home or renters policy, says Janece White, senior vice president and jewelry underwriting leader at Chubb. These companies include:
Sellers of jewelry insurance
Pricing and discounts
Stand-alone jewelry insurance policies generally cost 1% to 2% of each item’s value, and the cost of a floater on a homeowners or renters policy “really depends on what you’re insuring,” says Jeff Ill, vice president of homeowners product at Esurance.
- Your location
- The number of pieces you’re insuring and their individual values
- The deductible (the amount subtracted from your claim check)
- Whether the policy reimburses actual value (the cost minus depreciation) or replacement value (the cost to replace it today)
Some insurers require an appraisal before providing the final quote.
Insurers often provide quotes for jewelry insurance online or over the phone. Once you have a quote, the application will probably be easy to complete, and your coverage can begin as soon as you’ve made a payment.
Jewelry insurance claims
To avoid unpleasant surprises when you file a claim, it’s important to understand how you’ll be compensated.
- Am I covered if I damage or lose my jewelry by accident?
- Is jewelry given or received as a gift covered?
- Does my coverage change when I’m traveling?
- Will I be reimbursed the cash value of the item or the amount it takes to replace it?
- Can I choose my own jeweler for repair or replacement?
- If I own custom jewelry, will my policy pay for a new piece, or will I be required to accept something “comparable”?
The most common reason for jewelry insurance claims? “Mysterious disappearance, by far,” says Donald Soss, vice president at Nationwide Private Client. Insurers use this term when an item is lost for a reason other than theft, such as stepping out of the pool and realizing your ring is gone.
Note that making a home insurance claim for jewelry could cause your premium to increase at renewal time. Buying a stand-alone jewelry policy keeps the coverage separate, so a claim won’t affect your home insurance premium.
Typically, the owner of the valuable item also owns the jewelry policy. Giving a piece of jewelry away as a gift might mean it’s no longer covered by your policy, unless the policy specifically states otherwise.
So, should you buy jewelry insurance?
“Whether you’re a beginning collector or person who has a lot, you should always be thinking about what it would take to financially be made whole again after a loss,” White says. “The goal is to avoid out-of-pocket costs or being forced into a type of compensation or repair you don’t want.”