If your favorite piece of jewelry disappeared or was severely damaged, how would you feel:
- Devastated by its sentimental value?
- Crushed because you could not afford to replace or fix it?
- Reluctant to wear or purchase quality jewelry again?
If you responded “yes” to any of these questions, you may want to consider purchasing jewelry insurance.
Jewelry insurance provides coverage for your jewelry if it is destroyed or stolen. Some policies also cover missing jewelry. Here’s a list of options to help you select the best jewelry insurance for you.
Jewelry insurance from your home insurer
If you have homeowners, renters, or condo insurance, your policy probably includes some jewelry coverage, and more may be available if necessary. This is how it works.
Personal property coverage on a standard policy
Jewelry is covered under the personal property part of standard homeowners, renters, and condo insurance policies (along with other things such as clothes and furniture).
These insurance often cover your belongings in the event of theft or fire. However, they will normally not pay for issues that are not covered by the policy, such as manufacturing faults or dropping your wedding band down a heating vent. They generally do not compensate for flood or earthquake damage.
There are a few drawbacks to relying on your homeowners or renters policy to cover your jewelry.
The company may only pay up to a certain amount for lost jewelry, typically around $1,500. If you own more expensive jewelry, your coverage may be insufficient.
Second, the insurance will take your deductible from any claim payout. So, if someone takes your $1,500 bracelet and you have a $1,000 homeowners insurance deductible, you will only receive $500 from your insurance carrier.
Finally, filing a claim for a stolen or damaged piece of jewelry may result in increased coverage costs.
Consider this option if: You don’t possess much jewelry, or the pieces you do own aren’t worth more than the jewelry sublimit on your policy.
If the jewelry maximum on your existing policy is insufficient to cover what you own, your home insurer may be able to provide you with one of the following types of additional coverage.
Blanket coverage
Blanket coverage raises the maximum amount your policy will pay for a certain category of costly item, such as jewelry. For example, if the regular policy only pays $1,500 for stolen jewelry, adding blanket coverage could increase that amount to $5,000 or more. Per-item limitations may also apply.
Depending on the insurer, blanket coverage may potentially broaden what your policy covers, covering situations like stolen or misplaced jewelry. Some companies provide blanket coverage with no deductible.
Consider this option if: You own a collection of jewelry but none of the individual items are particularly valued.
Scheduled personal property coverage
When you “schedule” a piece of jewelry, you are purchasing specialized coverage for that item. For example, you may not own any expensive jewelry aside from your $5,000 engagement ring. Instead than purchasing blanket coverage for a collection that you do not own, merely insure the ring.
Scheduled personal property insurance, unlike normal homeowners or renters policies, may cover incidents such as losing a bracelet while traveling or dropping a ring down a sewer. There’s typically no deductible.
To get this coverage, you may be required to provide an appraisal (an expert assessment of the item’s value).
Consider this option if: You own one or more individual items worth more than the jewelry maximum on your homeowner’s insurance.
Jewelry warranties and service plans
Jewelry warranties and service plans serve different functions than insurance and cover a variety of issues.
Jewelry warranties
Warranties often cover manufacturing flaws, such as loose stones or structural problems. They will not cover normal wear and tear. They will not replace your valuables if it is stolen or lost at the beach.
Some jewelry stores need you to bring your jewelry in for examination on a regular basis, such as every six months, in order to preserve the warranty.
Consider this option if: you are concerned about structural flaws. Your jewelry may come with an automatic warranty.
Jewelry service plans
Your jeweler may provide a servicing plan that includes ring resizing, stone resetting, rhodium plating, and repairs to broken prongs. While these plans can repair damaged jewelry, they do not cover theft or loss.
Consider this option if: you believe your jewelry is at risk of being damaged, such as if you wear your engagement ring all the time and live an active lifestyle.
Jewelry insurance from a specialty company
Companies that specialize in jewelry insurance can provide more comprehensive coverage than your homeowners or renters insurer. For example, they may cover preventive maintenance like stone tightening or clasp replacement. They may even pay for valuables that were lost in a flood or earthquake.
Many stand-alone jewelry plans include “all risks” coverage, which means they pay for loss caused by any occurrence unless specifically excluded. Jewelry insurance does not often cover the following events:
- Manufacturer defects.
- War or nuclear risks.
- Wear and tear.
- Rodents or pests cause damage.
- Intentional loss or damage.
Purchasing jewelry coverage from a specialized provider guarantees that if you need to file a claim, it will not affect the cost of your homes or renters insurance.
Many of these policies are “repair and replace” policies, which reimburse your jeweler after a claim. That option could be useful if you know you’ll need to replace a missing piece, but repair and replace policies provide less flexibility than cash payouts.
Consider this option if: you don’t want jewelry claims to affect your home insurance rates and intend to replace lost or stolen items.
Jewelry insurance companies
If you’re looking for standalone jewelry insurance, the businesses listed below are worth considering.
BriteCo
Best feature: BriteCo will reimburse up to 125% of the appraised worth of your jewelry if the replacement costs more than estimated.
Downside: When you file a claim with BriteCo, you will not be paid in cash. Instead, it will collaborate with the jeweler who sold or appraised the item to develop a substitute.
How it works: BriteCo policies protect your valuables against theft, loss, damage, and strange disappearance. They also pay for some maintenance work, such as prong retipping and stone resetting. In most jurisdictions, BriteCo will cover up to $750,000 of jewels per customer and $250,000 per piece. Every year, the firm automatically adjusts your coverage level to reflect market developments that impact the value of your jewelry.
Most BriteCo insurance have no deductible. You have the option of paying your premium monthly or annually and receiving a discount. You can lower your premium if you keep your jewelry in a safe or have a central burglar alarm installed in your home.
The company’s website is sleek and simple to use, with a rapid online pricing procedure and an electronic claim form.
GemShield
Best feature: You can select from a variety of deductible alternatives, allowing you to adjust the policy’s price.
Downside: GemShield normally provides coverage of up to $35,000 per piece and $100,000 total, which is lower than some other insurers’ limitations. However, the corporation will consider higher restrictions on an individual basis.
How it works: GemShield offers “repair and replacement” coverage. This implies that if your jewelry is lost, stolen, or damaged, the firm will work with your jeweler to repair or replace it. You can utilize the same jeweler from which you purchased the piece, or you can select another jeweler from GemShield’s network.
GemShield’s policies protect against theft, loss, inexplicable disappearance, damage, floods, and earthquakes. They also provide 30 days of limited coverage for any new jewelry you purchase. You must provide an appraisal for any piece costing $5,000 or more. For items valued less, a thorough receipt may suffice.
You may get an online quote in minutes. If you need to file a claim, you can phone the firm or enter your information online.
Jewelers Mutual
Best feature: Discounts may be available for having a home security system, putting your jewelry in a safe deposit box, or inscribing it with an identification number provided by an industry partner.
Downside: Jewelers Mutual does not provide monthly payment alternatives, although other payment plans may be available if your annual premium exceeds $200.
How it works: Established in 1913 by a group of jewelers, this company has over a century of expertise offering jewelry insurance. It includes loss, theft, strange disappearance, destruction, floods, and earthquakes. It may also pay for preventive maintenance, such as straightening bent prongs or restringing broken pearl strands.
You can get an online quote and change the price by changing your deductible (or not having one at all). You can file a claim online or over the phone. Jewelers Mutual will pay your preferred jeweler to repair or replace your jewelry; there is no option for cash payout.
Jewelers Mutual can ensure that your coverage stays up with market developments by increasing your maximum annually. The company may also cover new jewelry for 30 days after purchase.
Lavalier
Best feature: Lavalier provides an “unscheduled jewelry endorsement” that can cover a set of objects valued at less than $1,000 each, with no appraisals required. It’s a smart choice if the majority of your collection isn’t particularly valuable but you still want to insure it.
Downside: There is no monthly payment option. Instead, you will pay your premiums on an annual basis.
How it works: Lavalier covers loss, theft, damage, and inexplicable disappearances, as well as claims caused by floods or earthquakes. It also provides limited coverage for new jewelry. Its upper limits are typically $50,000 per piece and $150,000 altogether, but you may be able to obtain further coverage.
Lavalier allows you to customize your premium by selecting from a variety of deductible options. You can save money by installing a home alarm or safe, acquiring a gemstone grading report from an approved source, or storing your jewelry in a bank vault or safe deposit box.
You can submit a claim using your online account or by contacting customer support. Lavalier will pay your preferred jeweler immediately to repair or replace your piece.
How much is jewelry insurance?
Stand-alone jewelry insurance coverage typically costs between 1% and 2% of the item’s value. The price of a policy might vary depending on:
- Your location.
- The number of items you’re insuring and their respective values.
- The deductible.
- Whether the coverage reimburses actual value (cost less depreciation) or replacement value (cost to replace it today). In rare instances, there may be a third alternative. Some firms allow you to insure heirloom pieces or other difficult-to-replace jewelry on an agreed-upon value basis, which means the insurer will pay the amount mentioned in the policy.
You might be able to obtain a discount on jewelry insurance by:
- Owning a home security system.
- Keep the jewelry in a home safe or bank deposit box.
- Registering the jewelry with a third-party service such as Gemprint or Forevermark.
You may receive jewelry insurance rates online or by phone. Once you receive a quote, your coverage may begin as soon as you make a payment. To receive coverage, you may be required to submit an appraisal or detailed receipt.
How does jewelry insurance work?
Jewelry insurance is similar to other types of insurance. You pay the premiums, and the insurance company reimburses you if your jewelry is damaged or stolen, less your deductible. However, how that situation plays out depends on the specifics of your coverage.
To avoid unpleasant surprises, you should understand what is covered and how your insurer will compensate you. Many insurance providers promise to pay for “repair or replacement” of damaged or stolen jewelry, but make sure you understand how such payments will work. Ask the company:
- Will the policy pay if I accidentally damage or lose my jewelry?
- Will the coverage cover jewelry that I give or receive as a gift?
- Does my coverage change while I’m traveling?
- Will the insurer pay a jeweler to replace a lost item or offer me its cash value?
- Can I select my own jeweler for repair or replacement?
- If I possess custom jewelry, will my policy cover the cost of a new piece, or will I have to accept something “comparable”?
Is jewelry insurance worth it?
It depends on how valuable your jewelry is to you. If you’ve made a significant financial and emotional investment in your jewelry, purchasing insurance is a good decision. However, if you would not feel compelled to replace your jewelry if it were lost or stolen, insurance may not be worthwhile, regardless of the cost of the item.
You may also want to examine how frequently you wear your jewelry. An engagement ring worn every day is more likely to be lost or destroyed than a diamond necklace stored in a bank safe for years.
