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Personal Jewelry Insurance - What Is It and Do You Need It?

By Edited Feb 8, 2014 1 1

Most people go out and buy renter's insurance or home owner's insurance and feel that their jewelry is covered as well. However, there are several things to consider before you decide that your current insurance is good enough. If you have high value items or more than one item that you want covered then personal jewelry insurance may be something you should choose to protect yourself in the event that your items get lost or stolen.

Personal Jewelry Insurance - What Is It?
Personal jewelry insurance is a plan that covered your high value jewelry items. Often this includes your engagement ring and some plans are made out for this diamond ring on its own. However, if you have several items worth a lot of money then you will want to make sure that these items are covered. Choosing a plan is a complicated issue, but you want to find one the will replace the item if it is lost or stolen. It is also best if you can get one that will replace the stone inside the setting in case it gets lost.

Personal Jewelry Insurance - What Is Usually Covered?
Most commonly covered by personal jewelry insurance is the engagement ring. After spending $3200 on a ring you want to make sure that your investment is taken care of. However, other types of jewelry can be covered as well. Consider rings, necklaces, and high value gemstones when looking at your jewelry collection. In most cases you want to insure items that are worth more than $1000.

Personal Jewelry Insurance - Do I Really Need It?
You will have to decide if you really need personal jewelry insurance or not. To make that decision there are several things that you should do.

  1. Talk with your home owner's or renter's insurance agent. The purpose here is to find out what is covered and what isn't. In most cases your rings and other items will be covered up to $1000 from theft or loss through fire. They will not be covered if they are lost outside of the home. You may also not be covered if a single item is worth more than $1000 or if you have several items that value more than $2,500.
  2. How much is your jewelry worth? Now that you know what your insurance plan covers you are going to want to find out how much the items that you own are worth. This doesn't have to be an exact number so your guestimate will work just fine. Write down each item and about how much you think it is worth. Paying for an appraisal isn't going to be something you want to do if you think you are getting personal jewelry insurance because you will need to pick an appraiser who is certified and will work with your insurance company.
  3. What's the value beyond the dollar sign. Dollar signs give you the value of a piece, but you also want to know the heart value of something. If your engagement ring is stolen or lost will you want it replaced right away? Knowing how you feel about each piece of jewelry that you own will also help you to decide if you need it.
  4. Is it worth it? While figuring out whether or not it is worth it you have to look into the addition to your monthly bill as well. If money is tight then you need to make sure that you can afford additional insurance. In many cases it is only a small fee each month, but small fees add up. Talking with your agent will let you know just how much it will cost you.

In most cases you will want to get jewelry insurance for anything that is worth more than $1000 or if you have a combined value of $2500 or greater. That doesn't mean that you might not want to consider it for something that is worth less. For example, if your engagement ring cost $800 then you may want to consider getting personal jewelry insurance to cover its loss if you don't think you will be able to come up with another $800 to get it replaced.

Personal Jewelry Insurance - Is It Worth It?
Knowing whether or not something is really worth it is up to you, however there are several things that make a lot of sense about personal jewelry insurance.

  • Personal jewelry insurance will cover a great percentage of your loss if your item is stolen or loss in a fire.
  • It will also cover you if you loose the item or damage it. Neither of these things are covered under your home owner's or renter's insurance policies.
  • You can get the policy tailored to fit your needs. Often this includes how much you pay for it each and every month as well as what is covered, how much is covered, or how much your deductible is.
  • If you pay a lot for your jewelry then it only makes sense to have personal jewelry insurance that will be there to protect your investment.

Personal Jewelry Insurance - Talk With Your Agent
In many cases, the best thing you can do is talk to the agent that carries your other property insurance policies. They will give you a quote, work with you on the types of insurance you need, help you to find an appraiser, and make out the personal jewelry insurance policy that will be attached to your current property insurance. By talking with your agent you can get a better idea if the types of jewelry you need added to your policy and their value make it worth adding to the plan. In many cases it will cost you 1 to 3 percent of the value of the personal jewelry insurance each month.

Personal jewelry insurance isn't for everyone, but if you have a lot of money tied up in beautiful and expensive items then it is worth considering. People lose items every day, others are stolen, some are damaged, and there are even the times when the diamond ring slides down the drain. In these cases personal jewelry insurance is there to cover you when you need it.



Jan 14, 2011 10:24am
I didn't even know that this existed. Interesting article.
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