Insurance
Should I Insure My Jewelry?
For most people, insurance provides peace of mind and yes, you should consider insuring jewelry especially if it holds a high sentimental value or it would cause financial hardship if it was lost or stolen. Insuring your jewelry also allows for you to wear your jewelry without worrying about loss or theft.
Most standard homeowner or renters insurance often have a cap or limit on the amount of jewelry theft coverage that it provides but you can add a separate rider to your existing insurance policy to cover each piece of jewelry. Your insurance company should be able to recommend the right policy or right to fit your needs.
What Do I Need to Do or
Consider Once I Decide to Insure My Jewelry?
Once you decide that you want to insure your item of jewelry, you will need an appraisal before contacting the insurance company. You will need recent appraisals which is why it is good to update your appraisals every few years. The appraisal contains a detailed description of the jewelry item and usually a photo to ensure proper coverage and smooth claims if you every need to submit one. Kolick's Jewelers is a jewelry store with a Graduate Gemologist From Gemological Institute of America (GIA), Certified Gemologist from American Gem Society and is qualified to do appraisals.
Once you have obtained the appraisal, contact your insurance company and let them know you have a jewelry appraisal and want to add coverage for that piece of jewelry or watch. The following are some important questions to consider when deciding on a policy for your expensive piece of jewelry or timepiece.
To ensure comprehensive jewelry coverage, ask your insurance company about policy types (e.g., scheduled riders vs. homeowners), "all-risk" coverage including "mysterious disappearance," and whether they offer "agreed value" or "replacement cost". Verify if coverage is worldwide, if you can choose your own jeweler, and if there is a deductible.
Coverage & Risk Questions
- Is this policy "all-risk"? (Covers theft, accidental damage, and mysterious disappearance/loss).
- What constitutes "mysterious disappearance"? (Does it cover losing an item without knowing how/where?).
- Is coverage worldwide? (Especially if traveling outside the U.S.).
- What is the deductible? (Is there a deductible for jewelry, or can I get a $0 deductible?).
- Do you cover "pairs and sets"? (If one earring is lost, do you pay to replace the whole pair?).
Does the policy cover damage? (Cracked stones, broken prongs, broken chains).
Valuation & Claims Questions
- Do you offer Agreed Value or Replacement Value? (Agreed Value pays the amount listed on the appraisal, while Replacement Cost covers the current cost to replace it).
- Does the policy cover up to the current appraisal value? (Can I get a rider that covers increased value?).
- Can I use my own jeweler for repairs or replacement?
- How do you pay out a claim? (Cash check or replacement via your own suppliers?).
What happens if the piece is irreplaceable? (e.g., vintage/antique).
Process & Documentation Questions
- What documentation is required? (Appraisal, receipt, photos).
- How often should I get a new appraisal? (Ideally every 2-5 years).
- Are there any security requirements? (e.g., must the jewelry be kept in a safe?).
- Can I use my own jeweler for repairs or replacement?
- How do you pay out a claim? (Cash check or replacement via your own suppliers?).
- What happens if the piece is irreplaceable? (e.g., vintage/antique).
Policy Structure
- Should I use an endorsement/rider on my homeowner's policy or a standalone policy?.
- What is the maximum limit for jewelry coverage?.
- Will a claim increase my home insurance premiums?.
Key Considerations:
- Cost: Generally costs a percent of the item's appraised value per year.
- Coverage Limits: Standard homeowners or renters insurance often caps jewelry theft coverage low, often around $1,500.
Alternatives: If the cost of the piece is low compared to your overall net worth, you might choose to "self-insure".
For most, insurance provides peace of mind, allowing them to wear their valuables without worrying about potential loss.
Certified Appraisals
If you need a fine jewelry appraisal for insurance or estate purposes — or if you would like to explore the incredible designs in our showroom, we invite you to visit us. For more information about appraisal or to schedule an appointment with our staff, contact Kolick’s Jewelers.
