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Jewelry Insurance: Is It A Good Idea?

By Edited Oct 24, 2016 1 0

Jewelry Insurance Is Meant To Protect You

If you have any valuable jewelry, you may have considered whether or not you should buy jewelry insurance. Jewelry insurance is meant to protect your investment in the event that it is lost or stolen. Depending on how much experience you have had with various types of insurance, you may have mixed feelings about getting jewelry insurance. Like most types of insurance, jewelry insurance is a policy that you will pay into periodically, that is meant to cover the cost of jewelry replacement should your jewelry get lost, damaged or stolen. There are many different jewelry insurance companies that you can choose from, so be sure to do your research before you make a decision.

What Makes Jewelry Insurance Good

You may not realize this, but often, the replacement value of your jewelry is not what you think it is. This is especially true for diamonds and jewels. Many people assume that if they purchase a $25,000 diamond ring that they could go and sell it for $25,000 if they ever needed to. Nothing could be further from the truth. In actuality, the resale value of diamonds is quite low. Yes, I know. This completely contradicts what the salesman at the jewelry store may have told you when he sold you the ring. He swore up and down that diamonds appreciate in value, right? Wrong. Unless you got a heck of a deal, I can almost guarantee that your diamonds are not worth what you paid for them. This is where jewelry insurance can come in handy. You will have the option to insure your diamond ring or whatever jewelry you want to insure for as much as you want (with some limitations, of course). In the event that your ring were to get lost or stolen, you could have an insurance policy that would pay you even more than the purchase price or face value of the ring. This makes jewelry insurance a good thing. Of course, an insurance payout cannot make up for the sentimental value that is lost, but having a few extra grand to replace your ring and then some, can help dry up tears quickly.

What Makes Jewelry Insurance Bad

Jewelry insurance is just that–it is an insurance policy. The jewelry insurance company is gambling that they will continue to collect your policy premium and that you will never lose your jewelry. Like most insurance companies, they will probably put up a fight should the time come that you require an insurance payout. Be sure to read the fine print and your contractual obligations when purchasing a jewelry insurance policy. For example, you may be required to have a certain amount of dated pictures of the jewelry, or you may be required to file a police report within a certain amount of time after a loss or theft. These are small stipulations that can mean the difference between you getting paid for your claim and you receiving nothing. Of course, the company that you used to purchase your policy will probably not highlight this information for you. It is up to you as an informed consumer to know your rights and your responsibilities.

Before you choose an insurance company, not only do you need to compare rates, you also need to compare benefits and restrictions. Ask as many questions as you can from your agent, and then ask a few more. Ask to review your proposed jewelry insurance contract before you purchase insurance. This is not a process that should be rushed; take your time, do your research and then make the best decision. If done correctly, jewelry insurance can be a wonderful benefit and safety net to help you protect the value of your valuables.

Jewelry Insurance

Buying jewelry insurance can protect your valuables.
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