Will insurance cover it? Understanding jewellery insurance
Jewellery is said to last a lifetime until your ring falls down the drain while you’re cleaning up after supper, or a thief swipes a valuable piece from your home or a hotel room on holidays. Unfortunately, accidents happen and while jewellery often feels irreplaceable, there are a few preventative measures that can be taken to ensure your precious jewellery is safe. Jewellery insurance is a smart and safe way to ensure and ensure your jewellery is protected, no matter what. Jewellery insurance is affordable and available for your special pieces under your homeowner or tenant’s insurance.
First, we must note that jewellery insurance does not typically cover or reimburse for costs exceeding $6000. If you have a substantial jewellery collection or pieces with significant monetary or sentimental value, it is a very good idea to inquire about an insurance extension for your fine jewellery pieces and gems. Some coverage is always better than no coverage.
The cost of jewellery insurance:
Premiums for jewellery insurance usually cost around 1% to 2% of the insured item’s value; the cost will vary according to the theft levels in your area and whether or not you have a home security system. So ensuring a piece of Korite jewellery that costs $2,000 could cost between $20 and $40 each year.
Insurance for jewellery and watches will typically cover the piece’s replacement value. In the case of fine gems, your insurer may require you to regularly have your jewellery appraised. Typically, they will ask you to receive an appraisal from a certified gemologist every five years to certify that your piece is insured for its current value as opposed to its original value.
Jewellery insurance alternatives:
Home safes that are fire and flood-proof are an excellent option for those looking for additional home security options for their jewellery. A small fire and flood-proof safes are cost-effective and will protect the security and integrity of your jewellery.
Additionally, there are other insurance options available for jewellery that are separate from your home insurance. We suggest doing some research and “shopping around” a bit for independent jewellery insurance, as separate insurance can come with a higher cost. Though separate policies typically have higher insurance premiums, if a claim is made, your home insurance premiums will not be affected.
If you are exploring adding jewellery insurance to your home insurance policy or if you are shopping for a new/separate policy, ensure you read and re-read what is covered under your policy. For example, the policy may have clauses that cover your jewellery if it is damaged but not if you lost or they may not cover if your door was left unlocked. It is important to understand the exclusion clauses in detail before signing your policy.
It is important to take some precautions and double-check if there are any restrictions on how the claims process works, under your insurer. Some insurance companies will require you to use jeweller of their choice to fix damaged items while others are much more flexible and will let you choose your jeweller or simply send you a cheque.