Insurance Coverage For Fine Jewelry

Most people have at least one piece of expensive jewelry: a wedding ring, a class ring, a precious necklace from a relative. However, not all fine jewelry is adequately insured. How many times have stories been heard of wedding rings going down the sink or lost at the beach. These kinds of things do happen all the time. Without adequate protection, the owner of the jewelry may not receive adequate reimbursement for the item or no reimbursement at all. The most comprehensive form of insurance for jewelry is a Personal Articles Floater.

Is Jewelry Covered By Homeowners Insurance

The standard homeowners policy has only limited coverage for jewelry items. Claim payments for any one jewelry item is limited to $1,000 per piece. Furthermore, the types of coverage for the jewelry is limited as well. For example, there is no coverage for lost items. A broader form of jewelry insurance is written on an insurance policy called the Personal Articles Floater. Sometimes it is possible to add additional limits for jewelry to a homeowners or renters insurance policy for high value items, but still there is a limit to the amount an insurance company will offer and the coverage is still limited. The Personal Articles Floater policy offers much broader coverage to include lost items.

How are Claims Settled for Lost or Damaged Jewelry

In Jewelry insurance, articles are valued when the insurance is written. As such, in the event of a loss, there are no claims problems regarding the value of the piece. As such claims under the Personal Articles Floater policies are handled quickly and without too much hassle. The claims payments will be made at the lesser of the cost to replace or repair the item or the limit established when the policy was written.

How To Apply for Personal Articles Floater Insurance

To obtain insurance for jewelry, it is necessary that an appraisal be done by a certified gemologist. Most jewelry stores have a gemologist on staff who can complete the appraisal for a small fee. Do keep in mind that retail values for jewelry trend greatly from year to year. Even though a piece of jewelry might appraise for $10,000 does not necessarily mean that insurance should be purchased in that amount. If a similar item of like kind and quality can be purchased for $8,000, that might be a better deal in the long run. Insurance for jewelry can get expensive. Insuring it for more than is necessary is just a waste of money.

The best place to get a quote for jewelry insurance is from the current insurance company writing your property insurance, the homeowners or renters policy. Most personal property insurance companies also write jewelry insurance and would most likely be glad to offer a quote for the coverage. If your insurance company does not offer specialty jewelry insurance, a separate policy can be obtained from specialty markets such as Jewelers Mutual Insurance Company.

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