Jewelry Insurance Tips

Getting Coverage for Your Personal Jewelry

© by Baya Gatter; all rights reserved

For your personal jewelry, a standard homeowner's insurance policy will provide a limited amount of coverage up to a specified dollar amount, as stated in your policy.

However, because some losses may not be covered it's advisable to purchase additional coverage, also known as a "floater" or "rider".

When purchasing the extra floater insurance, an updated jewelry appraisal certificate and pictures of your jewelry will be required so the insurance company has them on file. The floater would cover those pieces if they would be lost or stolen - and in some cases, a lost stone would also be covered under this policy.

Insurance companies have their preferred jewelers (also known as their preferred vendors) for replacing jewelry, and will indemnify you to your exact state before your loss. So for example, your 1kt VS1 diamond will be replaced with a 1kt VS1 diamond.

If your ring was insured for $6,500.00, and the insurance company can have it replaced for $5,500, you have the option to have their jeweler replace your ring - or you could choose to have your own jeweler replace your piece.

In the latter case, the insurance company would pay you out, also known as cash-out on the actual value (in this case you would receive $5,500), less your deductible, if applicable.

With regard to antique jewelry, which would be difficult to replace, the jewelry appraisal certificate would provide all the details and it would be based on the replacement value. You would receive a cash settlement.

Please note, this is a very GENERAL OVERVIEW of personal jewelry insurance, and may not apply to your own specific insurer.

I strongly recommend that you contact your individual agent to determine your insurance company's specific policies and your current coverage on your jewelry.

See more of Baya's tips for
Safeguarding Your Personal Jewelry.