Questions to Ask Before You Choose a Jewelry Insurance Policy

Written by: Sue Fritz | | Insuring Your Jewelry

Questions about Jewelry Insurance

When you buy, inherit, or are given an item of jewelry, one of the first things you should do is insure it. At Lavalier, each jewelry insurance policy is as unique as the items it insures. To get the most out of your customized jewelry insurance policy with Lavalier, ask yourself these questions.

What do I want to have insured?

The most common impetus for getting a jewelry insurance policy is a new or inherited item of jewelry. While you might be focused on just that one beautiful piece, this is a great opportunity for you to take stock of your entire jewelry and watch collection. Get all of your items insured on one policy, so you’ll only have to pay one premium. In the unfortunate event that your home is broken into, odds are you’re not going to encounter a choosy thief who takes only some of your jewelry. If it’s all covered, you don’t have to worry.
This is also the perfect time to get your jewelry appraised. A jewelry appraisal will help you determine the current value of your jewelry. Like the market price of your home, the value of the precious metals in your jewelry is constantly fluctuating. An appraisal will give you the most accurate value of your jewelry at the time you insure it. (Just keep an eye out for these red flags.)

What would I do if I lost my jewelry?

If you’re on the fence about jewelry insurance, consider how you’d feel if your jewelry was lost or stolen. Some things may not have much sentimental or inherent value – after all, one pair of dangly silver hoops is pretty much the same as another, right? But other accessories are much more meaningful. For example, a class ring wouldn’t be easy to replace, and the loss of your engagement ring or retirement watch could be deeply upsetting. If you lost such an item, would you panic? Tear the house apart looking for it? Try to hide the loss from your significant other? Or would you just go to the store and replace it? Even if that last option sounds more like you, the replacement cost could be far more than the cost of jewelry insurance in the first place, which leads us to our next questions…

How much will I pay for jewelry insurance? How much should my deductible be?

There are two costs associated with jewelry insurance: your premium and your deductible. The deductible is the amount that you’re responsible for if you have to file a claim. So, for example, you may set a deductible of $1,000. If your insured jewelry is lost, stolen, or damaged, you would be responsible for up to $1,000 of the cost of repair or replacement. Any additional costs within the coverage limit would be paid for by your insurance policy through Lavalier.

At Lavalier, you can choose your own deductible for each item you have insured. You can even choose to have a $0 deductible, in which case your insurance policy would cover the entire cost of repair and replacement, up to your coverage limit. When you’re selecting the deductible for your jewelry, think about the amount of extra spending money you usually have on hand. Jewelry insurance is designed to give you peace of mind, so you don’t want to have to scramble to afford your deductible if your jewelry is lost, stolen, or damaged. Choose an amount that you feel you could reasonably afford given your current circumstances.

The second cost to consider with jewelry insurance is your premium. This is the amount you pay for insurance every year. In general, this will be about 1-2% of the cost of your jewelry. If you’re insuring a $10,000 engagement ring, for example, you will likely pay between $100 and $200 a year for jewelry insurance.

Whether you’re paying more towards the 1% end or the 2% end of the scale or a bit above that depends on the deductible you’ve chosen, your location, and several other factors. If you’re willing to have a higher deductible, you’ll likely end up with lower premiums, which is great – as long as you never have to file a claim. If you do file a claim, you’ll be responsible for more of the cost to repair or replace your jewelry.

Have any other questions about jewelry insurance? Give us a call, or experiment to see what your customized jewelry plan could look like using Lavalier’s quick quote tool. In just minutes, you can make an investment you’ll never regret.

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