How to Insure Your Jewelry and Other Valuables

A family heirloom, an engagement ring, wedding bands, a gift celebrating a special occasion: Your valuables are invaluable. So, whether that beautiful piece of jewelry is something you inherited, bought or were gifted, the smart thing to do is insure it. But how and when do you do that? Doesn’t your home insurance already cover jewelry? And is special jewelry insurance worth the cost? Read on to discover all you need to know about protecting your treasures.

Valuable pieces that can be stolen, damaged or misplaced certainly seem like good things to have insured, so review your homeowners policy to see the specific details of the coverage you’ve got. That’s because a standard policy typically has a low limit of liability for small, expensive, easily stolen objects. In the event of a theft, you can expect a standard homeowners insurance policy to provide approximately $1,500 in coverage for jewelry.

Another important point about relying on homeowners insurance to protect your jewelry: The circumstances leading to any loss must be part of a covered peril—an event that falls under the protection of the policy. (You might not be covered if you drop your ring down the drain or leave it in a hotel room, for instance.) Fortunately, there are insurance options that go beyond the limitations of jewelry coverage in a standard homeowners policy.

Raise the limit of the liability or get an insurance rider

The easiest thing you can do to better protect your valuable jewelry is to increase the amount of coverage by raising the limit of liability on your homeowners policy. That limit can be doubled or even tripled to cover a piece worth more than the $1,500 mentioned above, but it may still not be enough for something like an expensive engagement ring. Alternatively, you can talk to your agent about getting a personal articles rider (also known as an endorsement), which provides broader coverage for a specific category (like jewelry) but costs more than simply raising the limits on your homeowners policy. You can also get a floater to cover one specific piece of jewelry no matter where the loss happens. There is usually no deductible when you make a claim under a floater, but you will be required to have an insurance jewelry appraisal before coverage is set.

Consider stand-alone coverage for your jewelry

If neither of the previous options offers the protection you need, you may want to explore getting a stand-alone jewelry insurance policy. Like a floater policy, stand-alone coverage offers protection in situations that a home policy won’t, and the payout usually won’t require you to pay a deductible.

The policy may reimburse actual value (which factors depreciation), or it may consider replacement value (what the insured item is worth today). Some insurance companies may offer yet another option—insurance at an agreed-upon value (covering special one-of-a-kind items, for example). A stand-alone policy may be a good option for insurance if you have high-value items or a large collection, and any claims made for jewelry losses will not affect your home insurance premiums. Expect a stand-alone policy for a piece of jewelry to cost 1% or 2% of the item’s value, making the annual insurance premiums in the $250 to $500 range for something like a $25,000 engagement ring.

Replacement Cost: Save the receipt and/or get an appraisal

Whatever type of insurance you’re considering, you need to know the replacement cost of the jewelry so you can set a coverage amount. If you or a loved one bought the pieces from a store, make sure to provide your agent with a copy of the receipt and keep the original somewhere safe, like with the papers of your home inventory.

If, on the other hand, you’ve had the jewelry for a while or it was a gift, you’ll need to have it appraised to find its value. (You may also need an appraisal if you’re adding a rider to an existing policy.) Where do you get jewelry appraised for insurance? Some fine jewelry stores have appraisers on staff, or your home insurance agent can recommend one. You may also consider using a qualified appraiser who has been certified through the American Society of Appraisers (ASA) or the National Association of Jewelry Appraisers.

What does a jewelry appraisal cover (and what does it cost)?

The appraiser determines your jewelry’s worth by carefully inspecting its condition, including its gemstones, settings and metals. Then the appraiser studies the market prices of those materials (gemstone and precious metal values can fluctuate) and considers the sale prices of similar types of jewelry. This information determines what your piece of jewelry is currently worth.

The appraiser draws up documentation of that worth—the appraisal—that states the value and criteria used to determine it. You can use this documentation to confirm whether you have enough insurance coverage for your jewelry. Or if you’re looking to sell the jewelry, this documentation can help you get a fair price.

The cost of an appraisal will vary based on the complexity of the work and how long it takes. A typical rate for professional jewelry appraisal, though, often ranges between $50 and $150 an hour. Before the appraisal begins, request an estimate of time and costs. Your jeweler can often help you procure an estimate. Also, avoid appraisers who charge a fee based on the value of jewelry items appraised because it can lead to unethical actions like overvaluing the item to get a higher fee.

Important questions to ask

Since all policies are different, here are some questions you can ask that will help you better understand the coverage that comes with your policy:

• What events are excluded from coverage?
• Am I covered if I am at fault for losing the jewelry?
• What type of coverage am I getting (actual value, replacement value, agreed-up value)?
• Am I covered while traveling and, if so, does that coverage extend outside the U.S.?
• What are my individual limits, and what is my overall limit?
• Am I covered if the loss (such as a single earring) is part of a set?

Next steps: Appraised, Insured, Protected

If you just received an engagement ring, congratulations! Amongst all of the calls you’ll be making to share the good news, be sure to include your insurance agent on that list. It’s important to report that you acquired the item and schedule an appraisal and an insurance policy review as soon as it’s convenient. That way you can make sure your valuable items will be adequately covered in case of theft, loss or mysterious disappearance.

This information is being provided for general informational purposes only. The Auto Club Group does not assume any liability in connection with providing this information.

Coverage is subject to all policy terms, conditions, exclusions and limitations. Discounts and savings opportunities subject to eligibility requirements. Subject to underwriting requirements. Personal lines insurance is underwritten by Auto Club Insurance Association, MemberSelect Insurance Company, Auto Club Group Insurance Company, Auto Club Property-Casualty Insurance Company, The Members Insurance Company, Universal Insurance Company, Auto Club South Insurance Company, or Auto Club Insurance Company of Florida. ©2024 The Auto Club Group. All rights reserved.