Insurance for Fine Jewelry

Insurance:
     It is important that if you are purchasing an expensive piece of fine jewelry that you make sure it is insured.

      Your renters or homeowners insurance probably offers coverage for theft of your jewelry but it is important to know your policies limitations. Typical home insurance policies set limits for the loss of certain categories of personal property, including jewelry. They typically pay a maximum of $1000 for theft of jewelry. As well, it is important to check if your policy covers for more than just theft - such as lost or damaged items.
You can usually purchase additional coverage for your fine jewelry, but you need a good understanding of your coverage. For example, find out if there is a deductible, how much is it and if raising or lowering the deductible will affect your policy costs. Also, an appraisal might be required, and there are probably only certain appraisers whose reports are accepted.

     Check if the items are covered no matter where they are, for example during domestic and international travel. As well, you should know whether items are covered for their full replacement cost, and do you have to replace the item or can you just get a cash settlement. As well, check if your policy covers repair to damaged jewelry. Your might prefer to buy insurance specifically for your jewelry. You can get three types of jewelry insurance. All policies that cover diamonds are Marine type policies. In the event of a lost peice of jewelry, ACV insurance will have the cost of the item replaced for the current cost of the piece (even if it has gone up or down in price). Replacement insurance is the most common. It is the replacement of the piece for its originally appraised price. The appraisal amount represents 2 results - 1) it sets the limit on the amount that the company is obliged to pay, and 2) it establishes the amount upon which your premiums will be based. This will depend on where you live, if it is a dangerous area they will be higher.

     Most insurance companies can replace a stone for less than you paid for it, and at best for the same price. If you insure a ring for $20,000, and the insurance company can replace it for $6000 based in the piece of jewelry's description, then that would be what they would pay to replace the item. If you ask for a "cash-out" they will pay you the estimate given by their replacement source.

     Chubb is one insurance company that offers policies through independent insurance agents and jewelry retailers. Chubbs insurance policy offers full coverage for the amount of the item on the policy, no deductible, world-wide coverage and coverage for lost or stolen rings, and replacement is not required - you get a cash settlement and if you do replace it you get to select the jeweler. An appraisal is only required for jewelry over $50,000, however it is recommended for all jewelry.
     Another company, Jewelers Mutual offers personal jewelry insurance that covers both repair and replacement, and an appraisal is required for coverage.

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