Importance of Protecting Your Assets
To insure, or not to insure: that is the question and the answer is yes, always insure. Whether your engagement ring cost $1,000. or you inherited a $100,000 collection, it is important to discuss insuring your jewelry so you will be covered if something ever happened.
We know what you are thinking: can I afford to insure my jewelry? The answer is yes, there are many affordable options. Think about it, whether it’s an engagement ring or a family heirloom, a single piece or an entire collection, can you afford to replace them by yourself? God forbid, that anything should happen to your engagement ring but life does happen, things get lost, stolen, and damaged. Having your jewelry insured is having the peace of mind that when life happens at least you’re covered. With that being said, we have devised a list of tips on how to protect your jewelry, the average cost of insuring your jewelry, and questions to ask your insurance agency.
Protecting Your Jewelry
- Have your engagement ring or jewelry appraised. Depending how many pieces you have in your collection, the average cost of an appraisal can range from $50/piece to $150/hour of appraising on bigger collections.
- Keep all of your jewelry receipts in case your insurance company needs additional proof of value and ownership.
- Make sure that your pieces are insured for the correct amount. Depending on the quality or overall values of your estate, regular updates in value are a must to make sure your jewelry is properly insured. You should speak with your local jeweler or appraiser to find out how frequently this should be done. The last thing you want to do is make a claim and find out that your beautiful jewelry was underinsured.
- Look into bundling your jewelry into your homeowners or renters insurance. When discussing jewelry coverage with your insurance agency make sure to ask them about comprehensive coverage such as accidental loss, stolen property, and mysterious loss. It is important to know what your insurance company will and will not cover.
- The average cost of a jewelry insurance policy ranges from $1 to $2 annually for every $100 that your jewelry is appraised. For example: you have an engagement ring that is worth $7,000, your insurance coverage should be in the range of $70 – $140/year. Keep in mind that some agencies are cheaper, so make sure you do your research.
Questions to Ask Your Insurance Company
- Is my jewelry covered for full appraisal value?
- Is my jewelry only covered if it is stolen, not lost or damaged?
- How would we provide proof of the jewelry being lost, damaged or stolen?
- How will your company replace the jewelry? Will you pay us with a check or will you refer us to a jeweler and pay them directly for the replacement cost?
- Are there instances where your insurance company will not cover my jewelry?
- What damages won’t you cover?
- What are some options that you can provide us with to save money? Such as discounts, bundling, or any other ways that we can save while protecting our assets?