Importance Of Jewelry Insurance

Do you have expensive jewelry? Find out how jewelry insurance can help you protect it and potentially save you a lot of money.

There are many reasons to collect jewelry. You may like to wear it on special occasions. It may seem like a symbol of accomplishment or wealth. You may also not wear jewelry much but keep some sentimental pieces that have been passed down in your family. Whatever your reasons are, it is likely that you have some important jewelry in your home. You may even wear some of it daily, such as an engagement or wedding ring. Protecting yourself financially in case that jewelry is lost, destroyed, or damaged is vital.

Jewelry insurance is the best way to protect yourself and your jewelry, but is it truly necessary? You may not think you have enough jewelry to insure. Alternatively, you may think your homeowners insurance already insures your jewelry, but that is not necessarily true. Special jewelry insurance is often required. Here is what you need to know before signing up for a jewelry insurance policy.

What is Jewelry Insurance and Why is it Necessary?

Jewelry insurance is specialized insurance specifically for jewelry. It is quite helpful because jewelry items are among the most frequent items homeowners lose, whether due to theft or other circumstances. According to the Federal Bureau of Investigation (FBI), jewelry thefts in the United States total approximately $100 million annually. It is also quite easy to lose or damage jewelry. For example, rings might fall off while showering, doing dishes, or swimming. Stones can also fall out of settings, and those losses can go unnoticed for hours or days, making it impossible to determine where they were lost. Jewelry insurance provides peace of mind in case such incidents occur.

What Kinds of Jewelry Pieces Should You Insure?

You may think you need to insure all your jewelry. If so, you can get a blanket policy. In the insurance field, a blanket insurance policy is one that covers multiple property types. In the case of jewelry, it covers multiple items in the same jewelry category. However, certain jewelry pieces may require specialized insurance coverage if they have high monetary values. Such pieces can include but are not limited to:

  • Gold Jewelry

  • Jewelry Featuring Diamonds or Other Precious Gemstones, Like Emeralds

  • Certain Antique Heirloom Pieces

  • Engagement or Wedding Rings

Why is Jewelry Insurance Important?

Most homeowners insurance policies cover small portions of the partial value of lost, destroyed, or stolen items, including non-essential household items like jewelry. However, jewelry insurance policies often cover the full values for items. For example, if you have $25,000 in jewelry, your homeowners insurance may only reimburse you for $2,000 or $3,000 when you place a claim. Placing a claim with your jewelry insurance company may result in receiving full reimbursement. Therefore, you can save a lot of money you might otherwise spend on purchasing replacement pieces.

What Are Some Common Types of Jewelry Insurance Coverage?

Jewelry insurance coverage comes in several forms. Some policies provide multiple forms of coverage. Others are specific regarding the circumstances covered. The best option is to find a policy that offers all coverage types. Those common coverage types are as follows:

  • Damage insurance covers jewelry damaged in various ways outlined by the insurance policy. For example, fire damage is often covered.

  • Accidental loss covers jewelry lost due to various types of unpredictable, accidental situations, especially vehicle accidents.

  • Theft coverage insures jewelry in case it is stolen.

  • Mysterious disappearance coverage ensures jewelry lost under mysterious circumstances.

It is important to clearly understand the difference between the terms “accidental loss” and “mysterious disappearance” as they relate to jewelry insurance. Accidental loss describes jewelry lost during actual accidents, such as car accidents. Those types of losses are typically documented or explainable. If you lose jewelry in such a way, you are able to state when and how you lost it. 

Mysterious disappearance coverage refers to jewelry that is somehow inexplicably misplaced. Most jewelry losses that are not due to theft are mysterious disappearance losses. Therefore, that coverage is particularly important. However, not all companies offer it. Those that due sometimes charge extra to add the coverage to an existing standard jewelry insurance policy.

What Are Some Top Companies Offering Jewelry Insurance?

There are companies all over the United States offering jewelry insurance. Some specialize specifically in jewelry coverage. Others offer general homeowners insurance and other policy types, along with jewelry coverage. Before selecting one, review all the services offered and the nuances of the coverage agreements. Here are some of the top jewelry insurance companies in the nation:

  • Jewelers Mutual is Wisconsin-based and has been in business since 1913. It has gained a positive national reputation for jewelry coverage in that time. Customers can create customized policies. Personal and business policies are available.

  • BriteCo is based in Illinois. It offers fine jewelry insurance coverage with up to 125 percent value coverage. Separate luxury watch and engagement ring coverage policies are also provided for interested clients. Policies cover loss, theft, and specified damage types without deductibles.

  • Chubb is an international insurance company with several offices throughout the United States, as well as offices in England, Japan, and other countries. Its jewelry insurance services include blanket and scheduled coverage options. The company also provides services such as security risk assessments and valuation reviews.

  • Zillion is based in California. It provides multiple types of jewelry coverage, including coverage for frequent travelers. Replacement and repair coverage has no deductible through Zillion. Shipping protection is also available. Single-item and large collection policies are available.

  • Lavalier is a New York jewelry insurance company. It provides personalized, comprehensive coverage for each client. Flood and earthquake coverage is included in its jewelry policies. Coverage also includes the gifting of jewelry to others, such as upon engagement.

How Much Does Jewelry Insurance Typically Cost?

The average cost to insure jewelry is less than two percent of its appraised value per year. However, the actual cost to you may be slightly higher or lower. Jewelry insurance costs are determined by multiple factors, including geographic location and applicable discounts. For example, if the insurance company determines you have safes or other adequate security features, you may get an insurance discount. A good option is to speak with a few companies and request custom quotes. Then you can get the best deal on jewelry insurance.