Jewelry Insurance - What is it and should you get it?

jewelry insurance

jewelry insurance


For some people, jewelry is their most prized possession. Whether because of the financial or the emotional value attached to the pieces, they may become extremely distraught if anything were to happen to their collection. This is why many people turn to specific insurance plans to protect themselves against any mishap like their jewelry being damaged, lost or stolen.

Like other insurance such as car and property, jewelry works on the same principle. Premiums for jewelry are usually 1% to 2% of the piece’s value per year so for a $1,000  ring, you will have to pay $100 to $200 every year. In case of damage or theft, the insurance company will pay the cost of its repair or replacement. A point to consider is that some homeowner’s insurance policies will also cover the jewelry cost but the coverage is limited and the terms and conditions are strict, therefore it is beneficial to go for a separate jewelry - only policy.

While the terms and conditions of policies are different and specific from company to company, generally they fall into two broad categories. For scheduled policies, all the items to be insured are listed separately while for unscheduled policies, a certain value for coverage is decided and you do not have to provide a list of specific items. When you sign up for jewelry insurance, all your items are appraised by a professional jeweler to find their actual worth. Some companies also offer discounts on the premiums if there is a home security or safe installed at your place. When buying the policy make sure to read the contract thoroughly and ask as many questions as you can so that you can avoid any mishaps down the road.

Many people will ask the question about whether getting jewelry insurance is really a good idea. After all, you are paying for a lot of premium for a probability of something happening in the future. It really depends on certain factors. A smart decision can be made by calculating the monetary as well as the sentimental value of your jewelry. So if you think you have lower cost items or pieces which are easily replaceable, opting for jewelry insurance is not a good idea, but if your jewelry items have a high worth or you are emotionally attached to it such as your wedding ring or your family heirlooms, going for it is a good call.