Tis the season…engagement season! That’s right – with the holidays right around the corner, couples everywhere will be popping the question and presenting their loved ones with gorgeous, glistening gemstones to symbolize their eternal love. Some will be delicate and understated, while others will be the size of a skating rink, but all of these precious articles will need protection.
Unfortunately, a homeowners policy offers very limited coverage for jewelry – typically no more than $2,500 per item, subject to your policy deductible. If you wear your ring daily, exposing it to all manner of risks and perils, a standalone jewelry policy may be exactly what you need.
Sometimes called a personal articles policy or an inland marine policy, a standalone jewelry policy provides specialized coverage for a “schedule,” or detailed list, of jewelry. You can add any type of ring – not just an engagement ring – as well as necklaces, earrings, bracelets, charms, pendants, watches, and even loose stones.
A standalone jewelry policy covers theft, mysterious disappearance, and damage to your jewelry. Lost, cracked, or chipped stones are covered, as are broken posts, prongs, chains, and clasps. Some carriers will also cover preventative maintenance, such as prong retipping or restringing pearls, to avoid a more costly claim in the future.
With a standalone jewelry policy, you’re able to tailor the coverage to your needs. Depending on your preference, you may have a very low deductible or no deductible at all, and there may be discounts available if your jewelry is kept in a safe or vault. There is usually no limit to the number of items you can schedule, and no maximum value for each individual item.
Insurance for a piece of jewelry costs a fraction of the item’s value. Engagement rings, for example, will cost about 1-2% of the ring’s value to insure, so a $10,000 engagement ring should cost between $100-$200 per year. You will need to be able to prove the value of the jewelry to the insurance company, however, and the best way to do that is to have it appraised.
An appraisal will list the value of the piece, as well as a detailed description of it. Providing the insurance company with information such as the type, purity, and color of metal or the cut, color, clarity, and weight of the gems will ensure that your jewelry is perfectly restored in the event of a loss.
Filing a claim on a standalone jewelry policy is quick, easy, and won’t increase your homeowners premium. Some carriers will simply send you a check to cover the cost of repairing or replacing your jewelry, but others will work directly with the jeweler of your choice to guarantee your jewelry meets the standard of quality it was originally designed with.
If the loss of your jewelry would leave you utterly devastated, whether for sentimental or monetary reasons, a standalone jewelry policy is the best way to provide peace of mind for you and comprehensive coverage for all of your precious treasures.
