Since sparkling gifts have become such a popular gift item at this time of year, we thought we would do our best to review the ABCs of Insurance Coverage for jewelry.
We cannot understate the importance of having regular appraisals for your precious pieces. The markets for gold and precious stones fluctuate frequently, so it is recommended to reappraise at least every 3 – 5 years. Not having an up-to-date appraisal can make it difficult for the insurance company to accurately determine the value of your item after it has been lost or damaged, and may also result in delays to the claim resolution process.
No one wants to consider that their domestic staff may one day steal from them, but sadly it is not uncommon. If you have a maid, nanny or other domestic worker, you may want to consider obtaining a background check. State laws regarding employment-related background checks can vary, so be sure to check your local laws and/or consult with an experienced attorney beforehand.
If you have a soft spot for beautiful jewelry, we encourage you to place your most valuable pieces in a secure cache for safe keeping. When it comes to storing your jewelry, there are a few important things to keep in mind. The safest place for them may be a bank safe, but if you opt for a home storage solution, you will want to be sure that the safe is either heavier than 750 pounds or bolted to the floor in order to deter thieves. It is important to note that many insurers require a photo showing that the safe is bolted.
Be sure that when you add a piece of jewelry to your collection, you disclose that piece of information to your insurance company so that your policy and coverages can be updated accordingly.
Most conventional homeowners policies provide only limited coverage for jewelry. Most only offer the restrictive Actual Cash Value form, which factors in depreciation when determining the value of the loss. Additionally, claims under a typical homeowners policy are usually subject to a deductible. Coverage may also be limited to certain geographical areas and/or to subject to limited named perils. For those who are interested in more robust coverage, our agency has access to carriers who provide policies with broader protection (e.g., worldwide coverage, no deductible, the Open Perils form, etc.) than what is found in a typical homeowners policy.
Two available coverage options include “blanket” coverage and “scheduled” coverage.
With blanket coverage, you receive an overall coverage limit for your jewelry item(s). There is a maximum limit per item. At the time of a loss, as no items are listed, you must identify and verify the value of the item.
With scheduled coverage, your jewelry items are specifically listed along with the replacement cost per item.
Some carriers offer policies with attractive features, such as the Agreed Value form (meaning that the value of each item is agreed upon prior to a loss), worldwide coverage, and no deductible.
Do not hesitate to contact one of our experienced agents to learn more information about your jewelry coverage options.
If you discover a loose stone on your engagement ring or notice that the clasp of your necklace is not working as well as it should, you should have those and other items fixed right away. It is better to have your jewelry repaired and restored rather than losing it and having to deal with filing a claim.
We hope this article serves as a gentle reminder to protect your newly purchased jewelry. Now might be a good time for you to have a conversation with us about a Valuable Items or Collections Policy. Please reach out with any questions you may have.
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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.