Many people own jewelry that has immense sentimental and real-world value, from treasured heirlooms to engagement rings to diamond necklaces.
Despite their worth, many jewelry owners don’t protect their pieces beyond listing them for minimal coverage in homeowners or renters insurance policies. However, when comparing jewelry insurance vs. homeowners insurance, your standard homeowners insurance policy might not cover your jewelry under certain circumstances and offers limited coverage for high-dollar pieces.
Investing in insurance for jewelry is vital to protect your pieces, especially for high-value items like engagement rings, leading many to ask, is engagement ring insurance worth it? Uninsured jewelry means you would foot the bill if your piece is damaged, lost, or stolen. Explore whether jewelry insurance coverage is worth it and how a comprehensive jewelry-specific insurance policy can give you peace of mind.
What You Will Learn
Who Should Get Jewelry Insurance?
Anyone who owns jewelry should have it insured. A jewelry insurance policy protects your jewelry from unexpected damage, loss, or theft. Whether you own simple, inexpensive jewelry or a high-dollar ornate engagement ring, insuring your investments and treasured pieces is a wise choice, especially if a replacement is needed.
Some people’s renters or homeowners insurance has some form of jewelry coverage. A typical homeowners insurance policy is limited to approximately $1,500 on a jewelry claim, often not covering the total replacement cost for fine or expensive jewelry.
Carefully read through your insurance company policy to determine coverage for your jewelry. For example, most policies only cover losses caused by theft, vandalism, fire, windstorms, or other perils listed under your policy terms.
Accidental or mysterious losses, such as dropping your ring down the drain, typically aren’t covered by a homeowners or renters insurance policy and can leave you with no way to replace your lost ring. Purchasing a specific jewelry insurance policy provides complete protection for your fine jewelry pieces, even if you lose or damage them in an accident.
The low cost of jewelry coverage often makes plans more affordable than paying out of pocket to replace or repair valuable pieces. BriteCo™ plans also offer added benefits like concierge services and complimentary cleaning.
How Jewelry Insurance Works
Jewelry insurance works similarly to other types of insurance, including home and auto. The value of the pieces is determined, then a policy is made detailing:
- How much is the replacement value
- What is covered, including damage, loss, and theft
- What locations are covered, including at home and outside the home
Have your jewelry appraised to determine its value and how much the policy will cover if lost, stolen, or damaged beyond repair. All appraisals should adhere to the standards established on forms 78 and 79 of the Jewelry Insurance Standards Organization. Stating just sentimental value will not be sufficient for an insurance policy, and every piece fluctuates with current market trends.
Once your high value items, like wedding rings or a diamond ring, are appraised, your insurer will offer you a premium based on its value. Most insurance companies require you to pay a yearly fee for insuring jewelry. At the same time, BriteCo lets you choose a monthly or annual premium fee schedule that fits your budget.
Is Jewelry Insurance Worth It?
Many jewelry buyers wonder if it is worth getting jewelry insurance. If you are a first-time buyer or have valuable jewelry pieces, you should insure them with jewelry insurance policies. A specialized jewelry policy may seem too expensive, but they are affordable and give you ample protection for your collection. Additionally, it is up to you to decide if you want replacement coverage or receive the actual cash value of your jewelry item.
Standard homeowners insurance policies do not cover jewelry unless specifically requested, and the optional coverage limits can be severely lacking if you file a claim. Some policies may have the option to add a rider or a floater that offers some protection for jewelry but be sure to read the fine print.
A rider is an amendment to a standard insurance policy that adds extra protection for specific things like the jewelry you keep in your home. A floater is an addition to your existing policy that would covering a particular piece of jewelry, for example, your heirloom jewelry or wedding bands.
A jewelry-specific insurance policy is the only way to cover your pieces comprehensively because accidents happen. This policy can protect your items should they be stolen or damaged in and outside the home with little out-of-pocket cost.
How Much Does Jewelry Insurance Cost?
When determining if jewelry insurance is worth it, you need to consider the cost of replacing your pieces versus the jewelry insurance cost, which is typically reflected in your insurance premium. Your jewelry insurance premium is typically priced according to a percentage of the value of your jewelry (appraisal documentation will be essential proof of the total value of your pieces).
When should you insure jewelry? It’s recommended to do so as soon as you purchase a valuable piece.
For example, coverage for an engagement ring or wedding band should cost between .5% and 1.5% of the ring’s value. The median price of an engagement ring is $3,250. So, you could expect to pay an annual premium of $48.75, significantly less than the cost of replacing the ring.
Where to Get Jewelry Insurance
BriteCo offers the best jewelry insurance at an affordable price, giving you comprehensive coverage and peace of mind. At BriteCo, we provide everything online for your convenience. You can purchase policies and file claims from our website.
Our policy offers worldwide coverage for loss, theft, damage, and mysterious disappearance. We also provide safe storage discounts and monthly premium options covering up to 125% of your item’s appraised value.
Contact us today to learn more about our coverage, or use our convenient online tool to get a quote to buy jewelry insurance in minutes.
Related Articles:
What To Expect With Ring Appraisals
What to do when you’ve lost your Engagement Ring
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