Is Jewelry Insurance Worth It?

December 12th, 2022

Jewelry is one of the most valuable objects many people own. These pieces have 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 a homeowner’s or renters insurance policies. However, 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 from damage, loss, or theft. Explore whether jewelry insurance coverage is worth it and how a comprehensive jewelry-specific insurance policy can give you peace of mind.

Who Should Get Jewelry Insurance?

Anyone who owns jewelry should have it insured. Insurance protects your jewelry from unexpected damage, loss, or theft. Whether you own simple, inexpensive jewelry or a high-dollar ornate engagement ring, it is a good idea to have it insured to protect your investment and ensure treasured pieces can be replaced if necessary. 

Some people’s renters or homeowners insurance has some form of jewelry coverage. Coverage is typically limited to approximately $1,500, which often does not cover the full 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 and can leave you with no way to replace your lost ring. To get full protection for your fine jewelry pieces, it’s wise to purchase a specific jewelry insurance policy that covers your 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 jewelry. BriteCo™ plans also offer added benefits like concierge services and complimentary cleaning.

Is Jewelry Insurance Worth It

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 establish its value and see 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.

Once your engagement or wedding ring is appraised, your insurer will offer you a monthly premium based on its value. Some companies require you to pay a yearly fee for coverage, while BriteCo, lets you choose a monthly or annual premium fee schedule that fits your budget.

Is Jewelry Insurance Worth It

Is Jewelry Insurance Worth It?

Many jewelry buyers wonder is it worth getting jewelry insurance? If you are a first-time buyer or have valuable jewelry pieces, you should insure them with jewelry-specific insurance. Jewelry insurance costs are affordable and give you ample protection for your collection. 

Standard policies do not cover jewelry unless specifically requested, and the optional coverage is often limited. Some policies may have the option to add a rider or a floater that offers some protection for jewelry. 

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 cover a specific piece of jewelry, for example, your wedding ring or a specific necklace. 

A jewelry-specific insurance policy is the only way to cover your pieces comprehensively. This protects them from loss or theft inside and outside the home and ensures that any damage can be repaired 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 cost of your insurance premium. Your jewelry insurance premium is typically priced according to a percentage of your jewelry’s appraised value.

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 affordable jewelry insurance that will give you comprehensive coverage and peace of mind. Our policies can be purchased within minutes online, and claims can be easily submitted on our website.

Our policy offers worldwide coverage for loss, theft, damage, and mysterious disappearance. We also offer safe storage discounts and monthly premium options and cover 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 for your insurance plan in minutes.

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About the Author

Dustin Lemick is the Founder and CEO of BriteCo and a third-generation jeweler with over thirteen years of retail jewelry experience. He holds a Graduate Gemologist degree from the Gemological Institute of America (GIA) and has in-depth knowledge and expertise in appraisal systems, diamond and gemstone markets, retail pricing models, insurance replacement models, and jewelry quotation pricing systems.
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BriteCo Inc. is a licensed insurance agency in all fifty states and the District of Columbia.
Please see the Licenses section of this website for more information. All insurance policies underwritten and issued by Glencar Insurance Company and administered by BriteCo.