Should You Insure Your Jewelry? November 13, 2018 – Posted in: Blog, Guest Post

Jewelry, they say, is a woman’s best friend. When it comes to jewelry, just like any luxury car or treasured collectible, you might want to consider insurance. Especially if you have very valuable pieces of jewelry, insurance should be given a serious thought. Think about it, jewelry stores, museums, actresses, actors, and movie producers insure the jewelry that’s kept in their vaults.

But, is it worth it to insure your jewelry? Here are some of the questions you might want to ask or consider before deciding to insure your jewelry.

  1. If your jewelry got lost, stolen, or damaged, do you want it to be replaced or repaired? How much are you willing to spend of the repair?

According to insurance companies, jewelry is actually under the most stolen or frequently lost category. To add to that, even as one of the most valuable possessions, jewelry can be easily misplaced. If your favorite ring or name necklace got lost or damaged and you were willing to replace or repair it, how much are you willing to spend? Would you regret not having insurance when faced with a $2000 repair fee or when you realize that your $6000 ring went down the drain?

You must weigh repair or replacement costs versus the cost of insurance to see whether or not you would push through insuring the jewelry. Think about your jewelry as a certain kind of investment as well. Are you willing to see that investment go knowing that you could have done something to hedge the value? Still, the best way to secure the worth of your jewelry and your investment is to insure your jewelry.

  1. How much does jewelry insurance cost?

So, by this time, you must have an idea of how much personal value you put in the piece of jewelry. The next hurdle you must surpass is the costs. Before deciding on anything, contact your broker and consider potential costs tied with insuring your jewelry. As just a ballpark figure, the insurance of your precious jewelry will require you to most likely pay an annual premium of around 1% to 2% of the total appraised value of your jewelry. You may also want to talk to your family about insuring your jewelry before crunching the numbers.

Should You Insure Your Jewellery


3. What are the benefits of jewelry insurance?

First, you become worry-free and get peace of mind. Jewelry insurance protects against theft, damage, or loss. You no longer have to worry if you accidentally misplace your jewelry or if someone tries to steal it from your home. Wherever you may be, the value of your jewelry and investment is protected. In addition to that, some jewelry insurance companies are also willing to replace your lost or stolen jewelry with the jewelry of your choice.

Another benefit is that insurance also covers regular wear-and-tear of jewelry and offers to cover repair costs.

Finally, having insurance will allow you to have a record of the value of your jewelry. This can be an advantage to you, mainly when settling your estate.

  1. Check different insurance policies

There is a myriad of choices for jewelry insurance policies. If your current insurance broker’s coverage does not fit your needs, you may want to consider other alternatives. Some insurers specifically specialize in jewelry insurance. Others partner with particular jewelry stores and offer coverage to their customers. If you want a duplicate of a piece of personalized jewelry you lost, you might want to go for those insurance companies that partner with jewelry stores as these jewelry stores will be able to replace your lost jewelry with an exact replica.

If you are worried about how you’d pay for jewelry if it becomes damaged or stolen, you might want to consider insuring it. Similar to insuring the valuable things in your life like your car, home, and health, if jewelry has the same value to you, insuring it is also a good idea. Once you’ve decided to go forward with insurance, take an inventory of your jewelry and head to your broker. Not only do you get to secure the value of your investment but you’ll get proper documentation of your net worth through insuring your jewelry. Hope this article was able to provide guidance on your decision.

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