Is Jewelry Insurance Worth It?

Written by: Sue Fritz | | Insuring Your Jewelry

Jewel Thief

The decision whether or not to insure your jewelry is a personal one, but to determine if jewelry insurance is worth it, every family must answer the same three questions:

  1. If your jewelry were lost, damaged, or stolen, would you want it repaired or replaced?
  2. If so, how much would you be able (or willing) to pay out of pocket to repair it?
  3. How much would jewelry insurance cost?

If your jewelry were lost, damaged, or stolen, would you want it repaired or replaced?

If you looked in the mirror after an evening out and realized you were missing an earring, would your heart sink? If you lost your wedding band on a trip overseas, would you feel panic, then sadness?

Jewelry is the biggest category of personal property that is lost or stolen, as evidenced by insurance claims. Additionally, of all the things a person owns that can be easily lost or stolen, jewelry is far and away the most valuable. If you own a piece of jewelry that you want to have forever, jewelry insurance is the best way to keep it safe.

How much would you be able (or willing) to pay to replace your jewelry?

If you have jewelry that you would hate to lose, consider how much you would be able and willing to pay to replace it. Take inventory of the monetary value of the contents of your jewelry box. Consider your strands of pearls, diamond earrings, wedding bands, family heirlooms, and statement pieces. Ask yourself if you would be able to replace them in the event of an emergency.

If you cannot imagine living without those pieces, but you know that you could not pay to replace all of them if the entire jewelry box were stolen or damaged, you should consider jewelry insurance. You insure everything else that is valuable in your life: your health, your car, and your home. Your jewelry, particularly your wedding and engagement jewelry, is likely one of the most valuable things you own. If the cost of losing it would be devastating to you, financially or emotionally, then insuring your jewelry makes good sense.

How much will jewelry insurance cost?

Once you’ve decided to protect your collection, do some research to learn what jewelry insurance would cost. Let’s use a common situation as an illustration.

Suppose you have an engagement ring that is worth $8,000, and that your ring is very special to you.

If it were ever lost, broken or stolen, you would want it replaced. You would not be comfortable with a less valuable, or less beautiful substitute, but you couldn’t spend $8,000 out of your budget to replace it. You would need significant help.

To insure an $8,000 ring through Lavalier with a $0 deductible (meaning that in the event of an emergency you wouldn’t pay any money at all) would cost approximately $7.33 a month. Less than $8! Your premium for the entire year would be just over 1% of the value of your ring.

Let’s illustrate with a more expensive example. Suppose you want to insure a family heirloom: an ornate necklace appraised at $18,000. Replacing the heirloom would be impossible from a sentimental standpoint, but also financially unrealistic for your family. Since you are already considering insurance for the heirloom, you decide to look into insuring several pairs of pearl earrings, which are worth $3,000, and your wedding bands, which are worth $5,000. You are looking for coverage for $26,000 worth of jewelry.

Comprehensive coverage from Lavalier with a $0 deductible would cost approximately $340 a year. That’s coverage for $26,000 worth of jewelry for about $28 a month! You can use the Quick Quote feature on Lavalier’s website to get a quote for your jewelry insurance in less than one minute.

To determine whether jewelry insurance is worth it to you, take an inventory of your jewelry box and your heart: how much you would miss each piece if it were lost, stolen, or broken? How much you would be willing to pay to replace it? Jewelry insurance doesn’t have to be expensive, and it doesn’t have to be complicated. When your jewelry is protected, you can wear your favorite pieces with confidence, knowing that no matter what happens, your accessories (and your memories) are there to stay.

 

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