Your fiancée has many great qualities, but if a quick peek in her jewelry box reveals several earrings that are missing their matches, you may want to consider jewelry insurance. Even the most responsible woman out there can damage her ring, or even worse, have it stolen. Jewelry insurance gives you the peace of mind to know that wherever you go, your investment is protected.
But it seems like there are so many options out there: warranties, a rider on your homeowners or renters insurance, separate jewelry insurance…how can you cut through some of the confusion and figure out what you really need? Here’s what you should look for in any insurance policy.
The big question to ask is: if your jewelry is lost or damaged, what exactly will your policy do to help you? Some insurance companies will give you a check, but only up to a certain amount. Others will repair, replace, or rebuild the jewelry. If this is the case, make sure that you can pick your jeweler so that your replacement item will be of similar quality to the original piece. You don’t want to end up with a cheaper version of your lost jewelry.
This is a big one. We’ve all heard stories about people who thought they had insurance, only to find out that for some obscure reason, their particular situation wasn’t covered. Take a good look at the exclusions section of the paperwork before you purchase insurance. Many warranties only cover manufacturer defects and require you to take the jewelry back to your jeweler every six months for inspection. Insurance doesn’t require that and, most importantly, insurance will be more likely to protect you if the ring gets lost, stolen, or damaged beyond normal wear and tear.
There are two rates to look at here: the premium and the deductible. The premium is the amount you pay every year, and it’s usually 1-2% of your jewelry’s value for jewelry insurance with good, broad coverage. A $5,000 ring would typically cost between $50 and $100 to insure. Your deductible is the amount that you pay (that is, the amount not covered by your insurance) if you ever have to make a claim because something happened to the ring. If you don’t want to have to pay anything out of pocket for a claim, you’ll want a $0 deductible. You’ll end up paying a slightly higher premium, but you won’t have to worry about paying anything if there’s a claim, as long as you aren’t underinsured. Most people use the appraisal value when determining how much insurance they need, but because metal and gem prices fluctuate, you’ll want to have your jewelry reappraised every few years. If you don’t mind having a higher deductible (you’re pretty sure you won’t lose that ring, and if you do, you can afford to pay the deductible to replace it), then you’ll pay less each year for your premium. So, higher deductible (amount you pay if the ring is lost/damaged/stolen) means lower premiums (amount you pay each year to have the insurance).
Some jewelry insurers provide jewelry-specific discounts. For example, clients who are insured through Lavalier receive discounted rates if they have a home alarm, a safe, gem identification (like Gemprint or Forevermark), or if the jewelry is stored in a bank vault or safety deposit box.
At Lavalier, we encourage you to look into all of your options, and we’re always available to answer any questions you might have about jewelry insurance. We provide simple, comprehensive coverage that doesn’t require a dictionary or legal expert to understand. Hopefully, you’ll never have to take advantage of your jewelry insurance – but if you do, Lavalier is here to make sure you’re covered.
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