Wearing jewelry makes us feel treasured, especially when it’s been given by a loved one. First of all, don’t let another day pass before you insure your new gem. The last thing you want is the possibility of losing it and not being able to replace it.
Here are some tips for insuring your new (and not so new) jewels:
- What is the standard coverage limit for jewelry on your homeowner’s policy? Each policy is different; and in some cases you have a choice as to what standard coverage limit you have. Talk with your insurance agent about your options.
- What is your comfort level of risk? Is there jewelry in your box that you may not be absolutely broken hearted about if it were gone? Or, maybe you have a high level of risk comfort and a savings account to back it up. If you suffered a loss, you may be able to carry some of that risk by replacing your lost items with your own cash.
- If you schedule your jewelry, is there a deductible to consider? Some policies have deductibles; others have $0 deductible. Check with your agent.
- Should you insure your jewelry under your homeowner’s policy or a separate policy? You have a choice in the matter. Talk with your insurance agent about your options. There are even some insurance companies, i.e. Jewelers Mutual, that specialize exclusively in jewelry coverage.
- BEWARE of the inflated appraisal. Inflating the value on your appraisal simply means that you will pay higher insurance premiums. As a result, many people discover too late that an insurance company will not pay more than current market value (the $ amount you paid).
- Who appraised your jewelry? As important as your appraisal is, it is even more important who is appraising your jewelry. Unlike real estate appraisers, personal property appraisers are not required licensing. It’s up to you to find a credentialed jewelry appraiser who can professionally appraise your valuables. Look for an appraiser who has undertaken the accreditation requirements of a professional appraisal organization like the International Society of Appraisers or American Society of Appraisers. Expect nothing less.
- Do you have a recent appraisal on your not-so-new jewelry? Whether you have your jewelry scheduled or insured under a blanket policy, get an up-to-date appraisal that will provide detailed information and a current replacement value to ensure comparable quality jewelry is replaced in case you experience a loss.