Many people insure their cars, houses, and mobile gadgets, but jewelry insurance is still fairly unpopular. Most jewelry has sentimental value, and high-end jewelry has high financial value as well.
Without insurance, you risk losing both your precious jewel and your money if any damage or loss happens.
Sometimes, with the excitement that comes with getting a piece of new jewelry, e.g., an engagement ring, you may forget that it’s also a responsibility. Of course, you need to do all you can to ensure that you protect your precious stones from damage or loss.
There are several reasons why you should get jewelry insurance. These are in cases of accidental loss or damage, theft, and mysterious disappearance.
If you’re wondering whether you need jewelry insurance or not, keep reading.
You’ll also find answers to everything you’ll need to know about insuring your jewelry.
Let’s jump in!
1. Get jewelry insurance for accidental loss or damage
You can prepare for the worst with jewelry insurance, so you don’t lose your money. While you won’t recover the sentimental value, at least you can get your money back. You can then decide to replace the jewelry with a different one.
Jewelry is usually made with precious stones and metals. Although they’re made to last long, they’re also prone to damage. For example, some people wear their engagement rings every day, and anything could happen to the ring in the course of wear.
If the ring hits a hard substance, the stone could get scratched, which would reduce the value. It could also fall off and be misplaced.
Unfortunately, there are incidents where you can’t always guarantee the safety of your jewelry. For instance, what if you’re in a car accident and your ring slips and is lost? Or your bracelet breaks from the impact, and it’s irreparable? These two unfortunate scenarios are pervasive and may not be avoidable.
Apart from this instance, many other unforeseeable events could cause jewelry damage. That’s why you should prepare for the worst with jewelry insurance.
2. Insure your jewelry against theft
Many people have suffered from jewelry theft either in their homes or at hotels and outdoor places. Some people specialize in high-end jewelry and watch robbery. If you lose both the special memories and financial expense, then it will be a complete loss. With jewelry insurance, you can limit the damage done if theft occurs.
In addition, it’s easy to steal jewelry since they’re small and can be quickly pawned. So the chances that you’ll recover your jewelry are small. You should seriously consider the possibility of theft when handling your gems.
Some thieves even use weapons and force to rob their victims. It is a big problem, and it costs people thousands of dollars yearly.
Sure, you can guard against theft and keep your priceless jewels in banks or safe houses. Many wealthy and influential people keep their jewelry collections in secured private vaults.
More so, you can’t hide all your jewelry away; some hold special memories you want to keep around. The robbery event could take you by surprise, and you can’t prepare for it.
For instance, if you travel and you have to stay in a hotel. What if someone breaks into your room and steals your jewelry when you’re away?
Luckily, you can prepare for the risk of theft with jewelry insurance. When you have good insurance for your jewelry, at least you’ll be able to recover your money.
3. Get jewelry insurance for mysterious disappearance
Jewelry insurance allows you to replace your jewelry if you lose it in uncertain situations. Once you’re sure that your jewelry is lost, just report to the insurance company so you’ll recover your money.
You can lose your jewelry and not be aware. It doesn’t necessarily mean you’ve been negligent.
For instance, if you can have an heirloom necklace that you only wear on special occasions. So you keep it in your safe until your next outing. Let’s say there isn’t one until after 3 months, and when you finally check for the jewelry, it isn’t there! And after you searched your home and belongings, you realize that it’s lost.
This is an example of real-life experiences that happen every day. And it explains what mysterious disappearance means.
A petty thief could take your jewelry away and sell it before you even realize it. Although it doesn’t happen to everyone, it could happen to you, and what happens next?
Insure your jewelry to recover it if it disappears mysteriously.
How expensive should jewelry be to insure it?
If you’re thinking about insuring your jewelry, you’ll need to carefully consider the worth of the items you want to insure.
There is no limit to the type of jewelry you can insure, no matter what it is. But if you rush into insurance, you can make mistakes and lose money. We recommend that you insure jewelry that will cost you more to replace. For example, if your wedding bands cost $15,000, you may only spend about $150 on insurance yearly.
The important thing with jewelry insurance is to remember that you’re protecting your expenses, and you should prioritize what’s important.
People primarily insure jewelry that is very expensive to purchase. What you think is expensive may not be for another person. So it depends on your income capacity.
What jewelry should you insure?
If you only purchase costume jewelry from fashion stores and brands, jewelry insurance doesn’t apply to you. Since they aren’t usually made with precious stones or metal, they’re not an expense.
So a pearl necklace you’ve purchased from Amazon doesn’t need insurance. Costume jewelry is less expensive and can be easily replaced.
Jewelry insurance applies to high-end jewelry. A diamond engagement ring or an emerald-stone earring costs more than a gold-plated chain.
When you weigh the value between the two, you’ll see that one is greater than the other. Some jewelry has both significant sentimental and financial value.
If you spent $20,000 on a piece of jewelry and $25 on another, it makes more sense to insure the one with higher financial value. Your insurance is an investment against the risk of loss of valuable property.
You’ll only spend more money on insurance if you insure every piece of jewelry you know. You need to properly consider the total value of the jewelry you plan to insure.
When should you not get insurance for your jewelry?
Jewelry insurance is meant to protect you from financial damage in case your jewelry is lost or stolen. It’s not wise to spend money insuring jewelry that wouldn’t cost you more money to replace.
Similarly, why would you waste money insuring an item that you wouldn’t miss if you lost it?
You have to remember that jewelry insurance isn’t free, and it can be a long process. You don’t need to spend money and energy on an item that isn’t important. The idea behind insurance is that you’re spending money to save money.
How much should you insure jewelry for?
Generally, the cost of insurance depends on the total value of the jewelry. It also depends on the type of policy you choose and the coverage area of the insurance.
Typically insurance companies charge about 1–3 percent of the jewelry’s total cost every year. So if your jewelry costs a total of $30,000, you may spend about $900 on annual insurance premiums.
In addition, premium rates depend on where you live since different states have their laws and policies.
Also, if you increase your deductible ratio, your premium costs will reduce. You can save money if you extend the coverage of your current policies to the jewelry item you want to insure.
You may not be able to prevent loss, damage, or theft of your jewelry, but with insurance, you have a backup.
There are several reasons why you should get jewelry insurance. These are; in cases of accidental loss or damage, theft, and mysterious disappearance.
Although it won’t bring back sentimental memories, you can get your money back at least. It’ll protect you from completely losing all the money you’ve spent.
However, you shouldn’t rush into jewelry insurance without any preparation. With the proper education and information, you’ll be able to make the best choice.
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