Understanding the Importance of Protecting Your Jewelry

With the market for jewelry continuing to grow, it’s more important than ever to protect your valuables and ensure that they can be replaced if they are stolen, lost or misplaced.

Only a small minority of jewelry purchased is insured properly, let alone insured. With a diamond engagement ring costing an average of $5,978, it makes sense to have a way to replace it if lost, stolen or misplaced. Surprisingly enough, a vast majority of jewelry is left uninsured.

Odds are, if something happens to your jewelry, you'll want to be able to replace it. The right insurance can replace your fine jewelry and watches. Some policies will replace a pair of earrings, if only one has been lost, and pay a replacement cost up to 150% of the initial insured amount if the item has increased in value. 

You may think that your homeowner's policy will cover you if your jewelry is stolen, lost, or misplaced, but that may not be the case. Typical homeowner's policies cover jewelry only if it is stolen, not if it is lost or misplaced. Most homeowner's policies have a maximum limit, so if your jewelry costs more than that, you won't be able to replace it with a similar item.

The right insurance policy, specifically for jewelry and other valuables, will provide "all risk" coverage for most causes of loss, with no deductible. Meaning, if you break an item, lose it, can't find it, or it's stolen, you'll receive a benefit immediately up to 150% of its value, so you can purchase another one exactly like you had.

Some insurance companies do not require an appraisal, they just need a good description of the piece, a photograph of the item and an estimated value. That makes getting the right coverage easy. They also provide automatic coverage for newly acquired pieces, so you don't have to worry about getting each new piece on the policy the same day you bought it.

To read more about the importance of protecting your jewelry and other valuables, click here.