Jewelry Insurance Demystified

Types of Jewelry Insurance

To understand jewelry insurance, you should understand the two basic types: Scheduled and Unscheduled property.

Unscheduled property is usually included in basic homeowner or renter's policies under blanket coverage. Typically, there is a deductible and a maximum amount of coverage. The specific amounts for each will vary with each individual policy. Generally, this type of coverage does not require an appraisal but sales receipts or photos can aid in proving the items existed and estimating their replacement value.

Scheduled property are individually appraised items, and the values are objectively set. With this "insured value" the premium is determined. Most scheduled property policies don't have an automatic appreciation adjustment, and the "insured value" will remain the same over the years.

Which Company Is Right For Me?

Most jewelry insurance is included in a basic homeowners policy, but you can also go with a stand alone jewelry insurance company as well, free of any "riders" or "add-ons." For the best coverage and premiums, trying straying from the large companies and researching smaller companies. Pure Insurance is a good example of a smaller insurance company that offers great flexibility and rates you may not be able to find with a larger company. Jewelry insurance through Pure works to offer more security and freedom to the insurer. For instance, coverage types can be combined(scheduled and blanket), the insurer has up to 90 days to inform the company of a loss, and in the event of a total loss they provide market value of up to 150% of the item's scheduled amount, or 25% of the blanket amount.

Just knowing that there are options other than the biggest, most established companies (State Farm, Allstate, Chubb, etc.) is a start. Shop around to find the best policy.

Tips for Saving Money

Every company will have different measures of offering discounts, but there are some general rules to follow.

Having photos of your jewelry items is important as it is possible to recreate the item on the basis of a good photograph.

Jewelry should be appraised on a regular basis, and many companies will offer significant discounts for a collection that has been recently appraised.

Keeping the jewelry in a safe, or having a good security system in your home is beneficial for obvious reasons, but also may make you eligible for premium discounts.

For an example of company offered discounts view the Pure Insurance page on how to save money.

Jewelry Insurance and Homeowners

One thing to keep in mind is that while homeowners insurance policies include jewelry coverage - this basic plan may not be enough to replace a piece of jewelry. Many people feel secure in the coverage for jewelry that their homeowners insurance includes. However, what they don't realize is that the insurance limit is usually around $2500, and sometimes less - no matter the original or actual cost of the piece of jewelry. Another important factor is inflation. Most consider the worth of the piece of jewelry by how much they paid for it. However, the replacement cost is going up every year, and your insurance may not be factoring that in. The standard home insurance may cover the full value of jewelry that is destroyed in a fire, explosion or collapse of a house. Apparently, 75% ofjewelry insurance payments are for theft and loss.

All home insurance companies will sell extra coverage that will pay to replace jewelry or even pay the full value of the item in cash - it may be worth it.