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  • Jewelry: Why and When to Insure your Jewelry onto a Homeowners

    jewelryThe answer is if you have some you need to have it covered on your insurance one way or another.

    Most home-owners policies have a very limited amount of coverage for Jewelry, Firearms, Furs, and Fine arts. Most have around $1,000 up to $2500 worth of coverage. Now in most cases that coverage doesn’t cover an item if the item is lost, only if the item is stolen from the residence. Now Fire, wind, hail, explosion and some other things are covered as well but not “Mysterious disappearance”. If your diamond falls out of your ring while you are at the mall, you would have no coverage for the diamond on a standard home-owners policy. If your tennis bracelet or necklace falls off and you don’t notice it until you get home and find it is no longer where you put it on that morning there would be no coverage.

    You have a few different options depending on your insurance company.

    Scheduled items: You are insuring that one piece for replacement value (not appraised value).  If you have a custom ring, you would want to make sure you have agreed value on the item not just replacement value.  How much does it cost to insure a diamond ring? Typical cost is between $10 to $12 per 1,000 worth of coverage.

    Example: $10,000 Diamond ring would typically run you between $100 and $120 per year.  For a more accurate jewelry insurance quote click on the blue link.

    Jewelry In Vault: This option is for High Value items that you keep in a safety deposit box at a bank most of the year. This option is not available with all companies and you have to call every time the item is taken out and put back in the vault. This drastically reduces the amount of money the insurance costs but you are only able to have it out of the vault up to 30 days per year.

    Example: You have a $300,000 engagement ring but you only where it on special occasion.  You don’t want to spend $3,500 per year to insure it.  With Jewelry in Vault it would only cost you about $450 per year.  You also can get a personal jewelry quote on our quote page under our homeowners tab.

    Blanket Jewelry: I find this option to be very nice for customers that have a bunch of items that are under $2500.00 per item. A blanket jewelry rider covers any items you may have up to a per limit/per rider basis. You don’t have to have all of your pieces listed and don’t need to call every time you get a new piece unless you need to raise the “per rider basis”.

    Example: you have a blanket rider for $25,000 (that is your per rider limit) the company has a $2500 per item limit. You have a bunch of pieces of jewelry under $2500. Your spouse goes out and buys you a new necklace worth $1500.00. He gives it to you at Christmas like a good spouse does and you don’t even think about insuring it. A year goes by and the diamond falls out of the necklace. Because you have a blanket policy and the item is below the per item limit it would automatically be covered. Whereas if you only had certain pieces scheduled only those pieces would have been covered.

    One would ask why wouldn’t you put everything under a Blanket Rider.  There are two reasons, First; if it is over the per item limit all you would get for your ring is the max of that limit which again is usually $2500.00. Secondly; it does cost more than just scheduling each and every item. Not much more but a dollar or two per thousand more. I personally think it is worth the little extra cost if most of your items are under or close to the per item limit.

    Conclusion: How do you insure your ring or other jewelry?  Call your Independent agent to see what coverage you have on your policy and if you need to add a rider to it.