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If you have an extensive jewelry collection, especially one with fine gems and precious metals, you should insure your collection. The peace of mind is worth the money it costs.
Jewelry can be insured in a few ways. One of the most common ways to insure jewelry is to add a rider to your homeowner’s or renters policy. Some insurance agents call riders extensions. The basic homeowner policy will insure things in your home, but the value has a limit. In some cases, the expensive pieces like engagement rings and heirloom jewelry will not be covered. This is why smart jewelry owners will add a rider to their policy, and even on specific items.
The other way to insure your jewelry is buy jewelry insurance. You might not be able to do this through your homeowner’s agent. This type of insurance is not as common as placing riders on homeowner’s policies, but it usually covers more value than the typical rider does.
Everyone who owns an engagement ring should have insurance for it. The insurance represents the financial and emotional value that the ring represents. If the ring is lost or stolen, it can be replaced without having to worry about buying a brand new one without any financial assistance.
Insuring jewelry takes a few simple steps. The first is to show receipts and have valuable pieces appraised. You usually have to pay a small fee for an appraisal, but those can be done at jewelers that have certified gemologists. Once you have established the value of the ring, you should be sure that the rider or the policy comes with you if you move. If you insure an engagement ring before the wedding, the policy should follow the bride to the shared home after the wedding.
Some jewelry stores offer insurance on jewelry purchased from their shops. They usually will cover expensive individual pieces like engagement rings or fine watches. Depending on the store, you might have to ask about a policy. Before you commit to it, it is a wise idea to ask questions about filing claims and how much coverage is available. You want to have the full value of the piece of jewelry covered so you can get something equal to the piece that was insured.
Before you commit to jewelry insurance or a rider, you should ask a few questions:
1. Is the ring covered just for theft?
2. If a claim is filed, how is the ring replaced?
3. How will a vintage piece be replaced?
4. What value is covered for the jewelry? Full price or a fraction of it?
5. What proof does the company need if the jewelry is gone?
6. What is not covered?
The cost of covering jewelry is based on the replacement value. In most cases, the price will be one or two percent of the value of the jewelry. For example, if your engagement ring was $5000, then you will have to pay between $50 and $100 to insure it on an annual basis. You could lower the price of your insurance by adding a personal safe to your home.