Tue. Jun 25th, 2024

What is jewelry insurance: definition, cost, and coverage<!-- wp:html --><p class="headline-regular financial-disclaimer">Our experts answer readers' insurance questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/insurance-rating-methodology" class="not-content-link" target="_blank" rel="noopener">here's how we assess insurance products</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank" rel="noopener">our partners</a>; however, our opinions are our own.</p> <p>Jewelry insurance protects jewelry worth more than $1,000 to $2,000 depending on the insurer.<br /> Jewelry insurance claims can hike your homeowners insurance rates.<br /> Some jewelry owners prefer to buy a separate jewelry insurance plan.<br /> Jewelry insurance is a key protection for higher value jewelry. Jewelry is more commonly lost or stolen, and coverage can help you repair or replace items.</p> <p>Over $100 million of jewelry is stolen every year, according to the <a href="https://www.fbi.gov/investigate/violent-crime/jewelry-gem-theft" target="_blank" rel="noopener">FBI</a>. So adequate protection is vital, whether it be your engagement ring or an expensive necklace, equivalent to three months of income.</p> <p>Your homeowners and renters personal items coverage replaces all your belongings up to policy limits. However, expensive single items like jewelry may require an extra <a href="https://www.businessinsider.com/personal-finance/best-homeowners-insurance-companies">homeowners insurance</a> rider. It leaves room for your policy to protect furniture, clothing, computers, and other everyday items. But more importantly, it puts it on the record with your insurance company that you have these high-priced items. So you can get items replaced faster with higher reimbursements.</p> <h2>How does jewelry insurance work?</h2> <p>Many homeowners or renters insurance policies include jewelry in your personal property coverage up to a point. Unfortunately, that limit can be low, leaving many with inadequate or no coverage. Jewelry coverage can kick in after a covered event that requires home repairs or other reimbursements. Policyholders can also file jewelry claims without exercising different parts of the policy.</p> <p>Unfortunately, jewelry is a high-theft item that's also easily lost. As such, if your jewelry is above $1,000 to $2,000 with most insurance companies, you would lose the remaining value in the event of a claim. This specialty coverage requires additional disclosure up front. Your insurer needs to know what it's covering. Insurance companies can then assess risk and set premiums.</p> <p>You submit pictures and other documentation when you file a claim for lost, damaged, or stolen jewelry. An adjuster might also ask you follow-up questions. Then the insurer would settle the claim based on the terms of your insurance policy.</p> <h3>What does jewelry insurance cover?</h3> <p>If you insure your jewelry under your renters and homeowners policy, your insurance company will reimburse you based on the <a href="https://www.businessinsider.com/personal-finance/what-is-home-insurance-peril">insurance peril</a>, as with other claims. If you have a named perils policy, your jewelry would only be covered if the cause was listed in your homeowners insurance policy. If you chose an open perils policy, it would be covered if the peril was not excluded in your policy documents.</p> <p>Common examples of covered hazards include:</p> <p>Fire or lightningWindstorm or hailVandalism or theftFalling objectsIce, snow, or sleetUnexpected discharge or overflow of water or steamSudden and accidental tearing, cracking, burning, or bulging</p> <p>A personal property endorsement or a separate policy will also cover accidental or mysterious disappearances or partially damaged jewelry.</p> <h3>What is not covered by a jewelry rider?</h3> <p>Jewelry coverage is similar to the rest of your homeowners policy in another way. It does not cover preexisting damage, intentional damage, normal wear and tear, or negligence. Policyholders should take reasonable steps to protect and maintain insured items. If you're concerned about issues not associated with a covered peril, your jewelry shop may sell warranty products to cover product defects.</p> <p>Your policy documents cover the exact details of what your homeowners or renters insurance would not cover.</p> <h2>How much does jewelry insurance cost?</h2> <p>Homeowners and renters policies sell jewelry coverage as a rider (optional coverage for an extra charge). Depending on your base coverage, the cost of the jewelry rider may seem negligible. Some people get a separate jewelry policy.</p> <p>Regardless of what type of policy you buy, premiums are based on the value of the jewelry. For higher-priced items, insurers may request an appraisal. Like your homeowners insurance coverage, you'll pay more to insure a $50,000 diamond jewelry set than you might for a $5,000 ring.</p> <p>Remember, if you file a jewelry claim with your <a href="https://www.businessinsider.com/personal-finance/what-is-homeowners-insurance">homeowners insurance</a> company, you must pay a preset deductible, a fee subtracted from your claim payout.</p> <p>If you're buying a standalone jewelry policy, companies usually charge you 1% to 2% of your total value of jewelry annually. For instance, if the appraised value of your engagement ring costs $6,000, engagement ring insurance could amount to $60 annually. Most jewelry insurance companies don't require paying a deductible for a payout.</p> <h2>Choosing jewelry insurance that makes sense for you</h2> <p>If you have a piece of expensive jewelry, compare options to ensure you have the coverage you need. Price is an essential factor, which can be addressed by comparing quotes from different companies. More importantly, you should compare any restrictions, deductibles, etc.</p> <p>You may want to reconsider if lower premiums come with a prohibitive deductible (or if it's close to the value of your jewelry). Likewise, if cheap premiums accompany coverage exclusions, you're unlikely to see the benefits of your policy if something happens.</p> <p>Your homeowners insurance policy is the most obvious place to find coverage. The basic personal property coverage for jewelry caps at $1,500. Jewelry riders may come with caps depending on your homeowners insurance provider. Regardless, skipping the additional coverage could leave you in a pinch.</p> <p>"This (scheduling your items) will result in an increase in the premium for making this endorsement, but the listed item will be exempt from the sub-limit and will be replaced at the listed amount," says <a href="https://affiliate.insider.com/?amazonTrackingID=biauto-7747-20&h=cf71118cba093f12c8677718476625b1d8b92d745f773aa08cccbf7caafee7dd&postID=6022bc9ed67e411add7cc5c4&site=bi&u=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fted-olsen-48918628%2F" target="_blank" rel="noopener">Ted Olsen, vice president at Goosehead Insurance</a>.</p> <p>What if you don't want to add jewelry to your homeowners insurance policy? Many savvy homeowners worry about increased premiums if they file a jewelry claim.</p> <h3>Some jewelry owners purchase a personal articles floater</h3> <p>"A personal articles floater is entirely separate from your homeowners or renters insurance policy," says Olsen. It offers higher limits and broader protection like accidental or unexplained losses for lost jewelry, which your homeowners or renters insurance policy may not match. For example, if you leave your diamond ring in another country and can't recover it, you can file a jewelry claim for mysterious disappearance coverage.</p> <p>"With a personal property floater, you can file jewelry claims without affecting your homeowners insurance rates," mentions Olsen. "If your high-value items are listed on your homeowners policy as scheduled personal property, any claim created in relation to that item will show up as a homeowners claim, impacting your rates for homeowners insurance in the future."</p> <p>Unfortunately, switching insurance companies wouldn't necessarily lower your rates. Your history of claims will follow you, whether your claims were $1,000 or $100,000.</p> <h3>Should you buy jewelry policies through your jeweler?</h3> <p>Jewelry companies sometimes sell warranties or other protection when you buy a high-value ring, necklace, etc. If a policy is tied to the jeweler, it may offer attractively low premiums while not affecting your homeowners insurance rates. However, it may also restrict where you can replace your jewelry (and restrict cash-out options).</p> <h2>Is jewelry insurance worth it?</h2> <p>Consider purchasing additional coverage for your jewelry collection if the appraised value of your jewelry exceeds the standard limit of your homeowners or renters insurance policy. If you're unsure, you can call your insurance agent. If you have a question about coverage (not intending to file a claim), your insurance agent is your best resource. Phone agents with some companies may open a claim you didn't intend to file if you're not careful. Most insurance companies place limits starting at around $1,500.</p> <p>You don't need to buy coverage for every piece of jewelry. However, theft and loss are common due to the value and small size of most jewelry. If the cost is more than you can afford to pay to replace it, especially if it holds sentimental value, premiums are affordable.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/personal-finance/jewelry-insurance-coverage">Business Insider</a></div><!-- /wp:html -->

Our experts answer readers’ insurance questions and write unbiased product reviews (here’s how we assess insurance products). In some cases, we receive a commission from our partners; however, our opinions are our own.

Jewelry insurance protects jewelry worth more than $1,000 to $2,000 depending on the insurer.
Jewelry insurance claims can hike your homeowners insurance rates.
Some jewelry owners prefer to buy a separate jewelry insurance plan.
Jewelry insurance is a key protection for higher value jewelry. Jewelry is more commonly lost or stolen, and coverage can help you repair or replace items.

Over $100 million of jewelry is stolen every year, according to the FBI. So adequate protection is vital, whether it be your engagement ring or an expensive necklace, equivalent to three months of income.

Your homeowners and renters personal items coverage replaces all your belongings up to policy limits. However, expensive single items like jewelry may require an extra homeowners insurance rider. It leaves room for your policy to protect furniture, clothing, computers, and other everyday items. But more importantly, it puts it on the record with your insurance company that you have these high-priced items. So you can get items replaced faster with higher reimbursements.

How does jewelry insurance work?

Many homeowners or renters insurance policies include jewelry in your personal property coverage up to a point. Unfortunately, that limit can be low, leaving many with inadequate or no coverage. Jewelry coverage can kick in after a covered event that requires home repairs or other reimbursements. Policyholders can also file jewelry claims without exercising different parts of the policy.

Unfortunately, jewelry is a high-theft item that’s also easily lost. As such, if your jewelry is above $1,000 to $2,000 with most insurance companies, you would lose the remaining value in the event of a claim. This specialty coverage requires additional disclosure up front. Your insurer needs to know what it’s covering. Insurance companies can then assess risk and set premiums.

You submit pictures and other documentation when you file a claim for lost, damaged, or stolen jewelry. An adjuster might also ask you follow-up questions. Then the insurer would settle the claim based on the terms of your insurance policy.

What does jewelry insurance cover?

If you insure your jewelry under your renters and homeowners policy, your insurance company will reimburse you based on the insurance peril, as with other claims. If you have a named perils policy, your jewelry would only be covered if the cause was listed in your homeowners insurance policy. If you chose an open perils policy, it would be covered if the peril was not excluded in your policy documents.

Common examples of covered hazards include:

Fire or lightningWindstorm or hailVandalism or theftFalling objectsIce, snow, or sleetUnexpected discharge or overflow of water or steamSudden and accidental tearing, cracking, burning, or bulging

A personal property endorsement or a separate policy will also cover accidental or mysterious disappearances or partially damaged jewelry.

What is not covered by a jewelry rider?

Jewelry coverage is similar to the rest of your homeowners policy in another way. It does not cover preexisting damage, intentional damage, normal wear and tear, or negligence. Policyholders should take reasonable steps to protect and maintain insured items. If you’re concerned about issues not associated with a covered peril, your jewelry shop may sell warranty products to cover product defects.

Your policy documents cover the exact details of what your homeowners or renters insurance would not cover.

How much does jewelry insurance cost?

Homeowners and renters policies sell jewelry coverage as a rider (optional coverage for an extra charge). Depending on your base coverage, the cost of the jewelry rider may seem negligible. Some people get a separate jewelry policy.

Regardless of what type of policy you buy, premiums are based on the value of the jewelry. For higher-priced items, insurers may request an appraisal. Like your homeowners insurance coverage, you’ll pay more to insure a $50,000 diamond jewelry set than you might for a $5,000 ring.

Remember, if you file a jewelry claim with your homeowners insurance company, you must pay a preset deductible, a fee subtracted from your claim payout.

If you’re buying a standalone jewelry policy, companies usually charge you 1% to 2% of your total value of jewelry annually. For instance, if the appraised value of your engagement ring costs $6,000, engagement ring insurance could amount to $60 annually. Most jewelry insurance companies don’t require paying a deductible for a payout.

Choosing jewelry insurance that makes sense for you

If you have a piece of expensive jewelry, compare options to ensure you have the coverage you need. Price is an essential factor, which can be addressed by comparing quotes from different companies. More importantly, you should compare any restrictions, deductibles, etc.

You may want to reconsider if lower premiums come with a prohibitive deductible (or if it’s close to the value of your jewelry). Likewise, if cheap premiums accompany coverage exclusions, you’re unlikely to see the benefits of your policy if something happens.

Your homeowners insurance policy is the most obvious place to find coverage. The basic personal property coverage for jewelry caps at $1,500. Jewelry riders may come with caps depending on your homeowners insurance provider. Regardless, skipping the additional coverage could leave you in a pinch.

“This (scheduling your items) will result in an increase in the premium for making this endorsement, but the listed item will be exempt from the sub-limit and will be replaced at the listed amount,” says Ted Olsen, vice president at Goosehead Insurance.

What if you don’t want to add jewelry to your homeowners insurance policy? Many savvy homeowners worry about increased premiums if they file a jewelry claim.

Some jewelry owners purchase a personal articles floater

“A personal articles floater is entirely separate from your homeowners or renters insurance policy,” says Olsen. It offers higher limits and broader protection like accidental or unexplained losses for lost jewelry, which your homeowners or renters insurance policy may not match. For example, if you leave your diamond ring in another country and can’t recover it, you can file a jewelry claim for mysterious disappearance coverage.

“With a personal property floater, you can file jewelry claims without affecting your homeowners insurance rates,” mentions Olsen. “If your high-value items are listed on your homeowners policy as scheduled personal property, any claim created in relation to that item will show up as a homeowners claim, impacting your rates for homeowners insurance in the future.”

Unfortunately, switching insurance companies wouldn’t necessarily lower your rates. Your history of claims will follow you, whether your claims were $1,000 or $100,000.

Should you buy jewelry policies through your jeweler?

Jewelry companies sometimes sell warranties or other protection when you buy a high-value ring, necklace, etc. If a policy is tied to the jeweler, it may offer attractively low premiums while not affecting your homeowners insurance rates. However, it may also restrict where you can replace your jewelry (and restrict cash-out options).

Is jewelry insurance worth it?

Consider purchasing additional coverage for your jewelry collection if the appraised value of your jewelry exceeds the standard limit of your homeowners or renters insurance policy. If you’re unsure, you can call your insurance agent. If you have a question about coverage (not intending to file a claim), your insurance agent is your best resource. Phone agents with some companies may open a claim you didn’t intend to file if you’re not careful. Most insurance companies place limits starting at around $1,500.

You don’t need to buy coverage for every piece of jewelry. However, theft and loss are common due to the value and small size of most jewelry. If the cost is more than you can afford to pay to replace it, especially if it holds sentimental value, premiums are affordable.

Read the original article on Business Insider

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