It’s estimated U.S. consumers will spend $20.7 billion on Valentine’s Day gifts in 2019 according to the National Retail Federation, of that an estimated $3.9 billion on jewelry. If you are giving or receiving, make sure you take the appropriate steps to insure your valuables. Most think their jewelry is covered by their home insurance policy, but the provisions are very small, and you need to make sure you are fully insured. You might not initially be thinking of anything happening to your precious and sentimental token, but the sooner it’s insured, the sooner you’ll be protected. While insuring your jewelry may be the last thing on your mind, being properly informed about being insured can be a great piece of mind.
1. Get an Appraisal
You will have to know what the jewelry is worth before you can protect the value of it. Most insurance companies will require an appraisal and a photo for higher value pieces, while an invoice or receipt might suffice for less expensive items.
2. Specific Gemstone Certificate
If your jewelry has precious gems or a diamond that is around half a carat or larger, your jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory like the Gemological Institute of America (GIA). This assessment of quality – while not an appraisal – lists all the measurements your appraiser will need to make the most accurate determination of value.
3. Don’t Rely on Only your Homeowner’s Insurance Policy to Cover the Full Value
The standard home insurance policy may cover the full value of jewelry that is destroyed in a fire or an explosion or in the collapse of a house. But not much jewelry is lost in those ways. Adding a rider/floater or scheduling an item covers a loss of any type, including those your homeowner’s insurance policy will not cover, such as accidental losses—say, dropping your ring down the sink’s drain, or leaving an expensive watch in a hotel room.
4. Inflation Affects your jewelry value
Some people buy the special coverage, but fail to increase it annually to keep up with inflation. They end up in trouble, only able to collect what their bracelets and rings were worth years earlier. It’s important to have your jewelry reappraised every two to three years for insurance purposes.
5. Ask the Right Questions
Make sure to ask a potential policy provider important questions like:
- Can you choose who repairs your ring?
- If you’re insured for replacement (instead of a cash payout), where can you purchase a new ring?
- What happens if a suitable replacement cannot be found?
- How will you need to prove the piece vanished if you make a claim?
- Are there any circumstances that aren’t covered?
- Will you continue to be insured when out of the country?
- Are you covered for damage or just loss/theft?
- Will the policy adjust according to inflation?
To learn more about insurance coverage and strategies to keep you safe and protected for the unexpected contact your agent at Ample Insurance today at 321-222-1488 or submit a simple ‘Request A Quote’ form.