This Is Why You Need To Take Out Jewelry Insurance!

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How much is your jewelry worth? If you are just like many other people who received a diamond engagement ring and a wedding ring that came with diamond accents, then you know that your jewelry is worth a lot of money. Unfortunately, accidents happen and you could accidentally lose your rings while you are out on a shopping spree, with the girls for a fun night out or while you and your husband are enjoying a well-deserved holiday. Apart from losing your rings, theft is also on the rise, which means your rings and other precious jewelry can be stolen at any time. When this happens, your regular household insurance policy may not cover the full value of your lost jewelry, which means you may have to pay in a significant amount of money to replace the lost jewelry.

Photo via The Brilliance.com Blog

Why Take Out Jewelry Insurance?

Let’s start by looking at why you should consider having a completely separate insurance policy especially for the expensive and precious jewelry pieces you own. The problem with household insurance is the fact that such a policy only covers certain items and they only pay out a limited amount of money should theft occur. Thus, when you add your jewelry to your standard insurance policy, then it means you might not get back enough money to replace the jewelry that was stolen in the event of theft.

It is also important to consider the fact that household insurance mostly covers your jewelry against theft. For this reason, you will have to open up a case at your local police station and report your jewelry as stolen before the insurance agency would pay out to you. When you lose your jewelry or it becomes damaged, then it will most likely not be covered – this means that you will have to replace lost jewelry yourself and will be liable for damage that occurs to your jewelry.

With jewelry insurance, however, things work a little differently. These insurance policies tend to cover your jewelry against everything. Not only will such a policy pay out if your jewelry is stolen, but also when you accidentally lose them. When jewelry is damaged, these policies also tend to cover the repair costs as well.

How Does Jewelry Insurance Work?

Now that we have discussed why you should consider taking out a separate insurance policy to help you claim back lost or stolen jewelry that are precious to you, we should take a quick look at how jewelry insurance works. First of all, it is important to know that jewelry insurance is different from regular household insurance. The criteria and pricing structure for this type of insurance differs from how insurance rates are calculated for other types of possessions.

To take out jewelry insurance, the first step is always to get a professional grading done on the particular piece of jewelry you wish to insure. You can visit a local jewelry store that has a good reputation to ensure you gain an accurate appraisal. Many local jewelry stores will have professional appraisers that can offer a valuation of your jewelry that you need to cover on the insurance policy.

Once the appraisal has been conducted, an official document will be provided to you. This document will contain vital information about the valuation of the jewelry, which needs to be presented to the insurance agency you would like to use for your jewelry insurance. Then you should do your online research to find out which is the best insurance for your jewelry. After providing your preferred agency with the document, they will be able to calculate an appropriate monthly premium for you and sign you up for a policy.

Conclusion

If you own expensive pieces of jewelry, then you should definitely consider taking out a separate insurance policy specifically for your jewelry. Standard insurance policies usually comes with limited options when it comes to items that are as expensive as diamond and other precious jewelry. Thus, a separate policy will ensure your jewelry is covered for the full amount they have been valued at.

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