Jewelry Insurance 101: Everything You Need to Know

We often insure the most expensive items we own, such as our cars or homes. But in many cases, we don’t think about our jewelry? Your jewelry is something that holds more than just sentimental value as it can be a symbol of love or legacy, and these pieces are often irreplaceable. Read on to find all the answers to some of the most common questions about jewelry insurance.

Jewelry insurance is unfortunately an unknown concept to most people, but protecting your jewelry by having insurance is a very smart move. 

Jewelry insurance works just like any other insurance. It is an important guarantee that will give you the peace of mind you need in case of any unfortunate event. However, this insurance specifically covers your precious pieces including, diamond necklaces, earrings, engagement rings, or any other valuable jewelry.

Insurance is a form of risk management that protects you from financial repercussions if your jewelry is damaged, stolen, or lost. These policies normally cover all jewelry items submitted for coverage and result in either replacement, repair, or reimbursement of costs. 

In terms of coverage, most jewelry insurance policies will cover the full spectrum. When items are stolen, damaged, or lost, your policy takes effect. Most of the time, jewelry insurance is more comprehensive than your regular homeowner’s policy. And while the majority of those do cover jewelry, it tends to be a smaller amount and only if the piece of jewelry is stolen. 

Fortunately, anyone can get jewelry insurance at any time for new or existing items. For example, if you and your partner are about to purchase wedding rings, you can insure them from day one.

However, if you’ve built up a collection of diamond jewelry over time and are only thinking about insurance now, don’t worry, the option is available for you too. If this is the case, you will most likely need to show proof of purchase or get a valuation done if you lost those documents.

The same applies to heirloom jewelry pieces. While it would be impossible to truly replace a diamond bracelet that once belonged to your great-grandmother,  you can have the item appraised so that a policy can be purchased for it.

Most basic homeowners or renters insurance policies provide some coverage for your valuables such as jewelry. For the most part, it will only cover your jewelry up to a certain amount of dollars.

A standard policy commonly has a coverage limit which is generally around $1,500. This means that your insurance company won’t pay more than this amount as reimbursement if your jewelry is stolen.

It is important to note that selecting a company that specializes in jewelry insurance will most likely give you more comprehensive coverage.

Just like with all types of policies, jewelry insurance costs are based on the value of each item, how often you wear the piece, and the amount of coverage you wish to have. Experts claim that typically between 1 – 3% of the item’s overall value is paid each year. Basically, if your diamond engagement ring costs $10, 000, you will end up paying $100 to $300 in annual insurance premiums.

You can avoid paying too much for your jewelry if you know exactly how much it costs. For example, overestimating its value could result in paying more than you need to. Alternatively, if you underestimate it, you might lose out financially in the event of a claim.

It’s also important to note that rates vary depending on where you live. You can get a quick and simple estimate of what you can expect to pay in your state on Jewelers Mutual’s homepage by using their free estimate tool. 

From the very moment you say “yes,” and begin rocking your new, dazzling addition on your hand, the thought of getting engagement ring insurance may be the furthest thing from your mind. But as they say, with great rings come great responsibilities. And, fortunately, during such a happy time, jewelry insurance can provide the peace of mind you need for less than you think. 

An engagement ring is among one of the most expensive things you will buy or own in your lifetime. So why not insure it? 

Engagement rings are also highly susceptible to damage or loss. Think about it, it is typically worn every day which increases the likelihood that it will be lost, damaged, or stolen.

When shopping around for insurance or buying a standalone jewelry insurance policy, it’s important to compare prices to find the best policy for you. Additionally, there are several different things that can easily help keep the cost of your jewelry insurance low. 

It may be possible to reduce your premiums if you have security measures such as a burglar alarm and quality locks. Or, you could consider purchasing a safe to keep your jewelry in when not in use.

Even if you don’t show off your stunning jewels, you can never be sure they will be safe at home. In fact, jewelry is one of the most commonly stolen items out of homes. 

Although we provide you with an insurance appraisal that you can use to obtain coverage, we do not provide jewelry insurance.

We know that jewelry mishaps are way too common but luckily we at JamesAllen.com have partnered with Jewelers Mutual (JM) Insurance Company. Together we provide you with warranties against damage AND comprehensive jewelry insurance – so you can be protected against wear-and-tear, loss, theft, or extensive damage. 

Insuring your jewelry with Jewelers Mutual® Jewelry Insurance is quick and easy, and leaves you with a feeling of emotional and financial security. Learn more and get your free quote today. 

Jewelers Mutual® Jewelry Insurance Advantages:

• Comprehensive worldwide coverage that extends beyond ordinary homeowners insurance;
• Protection against theft, damage, accidental loss, and mysterious disappearance;
• Flexibility to choose your own jeweler;
• Repair of damaged jewelry with the same level of quality as the original;
• Replacement of lost jewelry with the same brand and type;
• Graduate Gemologists (GIA) with a passion for jewelry on staff.

Being adequately informed is super important when deciding which insurance option or provider is best suited to your needs. Here are some great questions to ask while researching diamond jewelry insurance policies:

• Is there a deductible or discount if you have a home security system?
• If you’re insured for replacement (instead of a cash payout), where can you purchase a new ring?
• Are you covered for the full replacement cost of the diamond jewelry and will you receive a cash settlement or a replacement item?
• What happens if a suitable replacement cannot be found?
• How will you need to prove the piece of jewelry was stolen if you make a claim?
• Are there any circumstances that aren’t covered?
• In the event of a damaged or lost item overseas, does the policy cover you fully?
• Are you covered for damage or just loss and theft?
• Will the policy adjust according to inflation?
• What types of repairs contribute to the deductible?
• How often do you have to provide appraisal reports to the insurance company, and which ones do they accept?

• Make sure you compare insurance companies online or by phone before you choose one.
• Read all the details of the policy carefully before you pay for extra insurance.
• Make sure you understand the rules of the particular insurance company you choose.
• To avoid any nasty surprises should you need to make a claim, you should read the terms and conditions of your jewelry or contents insurance policy carefully.
• Check whether your jewelry is covered for the total replacement cost and if you can receive a cash settlement instead of a replacement item.
• It’s important to know that your insurance company may require periodic appraisals.
• Find out if you are eligible for a discount if you have a security system, such as an alarm.