Fine jewelry is expensive and sentimental. There are many things you can do to protect your fine jewelry, and buying tailored jewelry insurance should be one of them.
You might be surprised to learn that your homeowner's or renter's insurance policy probably does not offer full coverage for your engagement ring and other fine jewelry. Your insurance policy may cover jewelry theft but may not cover a loss that occurs for other reasons.
Before you purchase any policy, learn more about your options as well as important questions you should ask your agent.
Typical Insurance Policies
Renter's and homeowner's insurance policies set limits for the loss of certain categories of personal property, including jewelry. Homeowner's policies typically pay a maximum of $1,000 for jewelry theft. A renter's insurance policy might have a lower limit for jewelry loss--$500 is common. You can add an additional rider to your policy to increase your limit for fine jewelry coverage, but this will hike up your premium.
Does your insurance policy cover jewelry loss for reasons other than theft--such as for lost or damaged items? Read your policy carefully and ask your insurance agent to clarify the types of losses that are covered by your standard policy. If your policy does not cover loss or damage, consider opting for a different provider that specializes in insuring fine jewelry
Additional Jewelry Insurance Riders
If you don't want to take out an additional policy just for jewelry, you may be able to purchase a rider or add-on. When working out the details of the rider with your agent, be sure to ask these questions so that you have a good understanding of the coverage:
- 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? Are there only certain types of appraisers whose reports are accepted?
- Are the items covered no matter where they take place? Would the policy cover you for a loss that occurs during domestic or international travel?
- Are items covered for full replacement cost? Must you replace the item, or can you obtain a cash settlement?
- Does the policy cover repairs to damaged jewelry?
Jewelry Insurance Options
Companies that specialize in jewelry insurance are worthy options to consider, especially when you're insuring an irreplaceable item, like an antique engagement ring. These companies work directly with jewelers to be sure handling claims is seamless and as stress-free as possible. They know jewelry so they know when something, like an antique ring repair claim, might need special handling.
The Chubb Group
This company provides insurance specifically for jewelry. The company offers policies through independent insurance agents and jewelry retailers. Here's a brief description of Chubb's engagement ring policy guidelines:
- Full coverage for the itemized amount shown on the policy.
- No deductible.
- Coverage applies worldwide for lost or stolen rings.
- Replacement is not required, Chubb offers a cash settlement. If you do replace the ring, you select the jeweler.
Chubb recommends an appraisal for all insured jewelry but only requires an appraisal for items valued over $50,000. Chubb does not offer coverage for loose diamonds.
Jeweler's Mutual offers personal jewelry insurance that covers both repair and replacement. The coverage is reasonable, especially if you're only purchasing insurance for a few items. The policy is not available for unset stones or damaged items. Cash settlements are an option in the event of loss, and an appraisal is required for coverage.