Whether you need jewelry insurance depends on several factors related to your specific situation and the value you place on your jewelry. With that said, we have compiled some things to consider when deciding if jewelry insurance is worth it for you:
Value of the Jewelry:
If your jewelry is very valuable, either in terms of monetary or sentimental value, insuring them can help give you peace of mind. The loss or damage of an expensive piece without insurance can be financially burdensome because it may be cost prohibitive to replace.
Risk of Loss or Theft:
Consider how often you wear your jewelry. If your jewelry stays in a safety deposit box in a bank and is rarely worn, then the ROI based on risk is low. However If you wear your pieces daily or frequently, if you are in an area with a higher risk of theft or if you travel frequently with your valuable pieces, insurance might be a good idea.
Existing Homeowners/Renters Insurance:
Some standard homeowners or renters insurance policies may cover jewelry up to a certain value, but often this coverage is limited. It might not cover all scenarios (e.g., accidental loss) or may have a deductible that’s higher than the value of your jewelry.
Cost of Premiums vs. Potential Loss:
Evaluate the cost of the insurance premiums over time against the potential loss of the jewelry. If you’re paying a high annual premium to insure a piece that’s not particularly valuable, it might not be worth it. Conversely, if the premiums are reasonable and the jewelry is valuable, insurance could be a smart move.
If you add your jewelry as a RIDER to your homeowners policy, that will eliminate the need to pay a deductible and will guarantee better compensation (as it will be based on the appraisal that you must provide to the company in order to secure insurance). If you simply have it lumped into your homeowners and the deductible on the insurance is high, you’ll need to pay that amount out-of-pocket before the insurance kicks in. If the deductible is close to the value of the jewelry, the insurance might not be as useful.
Not all insurance is the same. Some policies might cover theft but not accidental loss or damage. Others might offer coverage for mysterious disappearances (you’re unsure how it was lost). Before getting insurance, be sure to understand exactly what’s covered and what isn’t.
Appraisals and Updates:
For pieces of a certain value, insurance companies typically require an appraisal. Over time, the value of jewelry can fluctuate. You might need to periodically update your appraisals and adjust your coverage accordingly. We recommend every 3-5 years or if there is a big shift in the commodities market.
In conclusion, jewelry insurance can be worth it if the cost of potentially losing or repairing your jewelry without insurance would be a significant financial or emotional burden. If you decide to proceed with insurance, always read the policy details carefully and shop around to get the best coverage for your needs.
Read our Frequently Asked Questions for more information