You found the perfect gift, and it’s a beautiful piece of jewellery. Just imagine having this valuable pendant or pair of earrings stolen or losing a stone from your engagement ring. While this can be devastating, it could be made worse if you don’t have appropriate insurance coverage for your gems. Here are a few important things to consider so your jewellery is properly insured.
Jewellery can make a great gift and often carries significant sentimental value. That’s why having a valuable pendant or pair of earrings stolen or losing a stone from your engagement ring can cause panic. It’s especially devastating if you don’t have the right insurance coverage for valuable items like your gems. Having jewellery insurance can provide you with peace of mind and take away any worries you may have about losing what’s rightfully yours.
Is jewellery insurance worth it? In short, the answer is yes! Valuable items like jewellery are often difficult to replace due to their high costs. As a result, they’re one of the first things thieves steal when robbing a home. In this guide, we’ll discuss the advantages of buying jewellery insurance. Let’s learn more about jewellery insurance and how having a policy can benefit you.
Jewellery insurance explained
What is jewellery insurance? A jewellery insurance policy will prevent you from having to pay for loss, theft or damage to your jewellery out of pocket. You can integrate it into your home insurance policy. However, it’s important to keep in mind that getting a separate policy can cover the gaps in your home insurance policy. Getting jewellery insurance will allow you to choose the specific items you would like to insure.
Incidents covered by jewellery insurance
As any insurance broker or company will tell you, life is unpredictable. That’s why you need a policy that will provide adequate coverage and financial protection for the types of jewellery you own. What does jewellery insurance cover? Let’s find out:
Loss
If you happen to lose your important piece of jewellery, you’ll want to hope you took the initiative to buy jewellery insurance beforehand. This will help you if you can’t find that valuable item anywhere.
Theft
If someone breaks into your home, jewellery is one of the most valuable items they can steal. Theft is also possible when you go out, and you’ll need insurance for this as well. A police report may be required for this claim.
Damage
Whether your watch face cracks or the chain of your necklace snaps, insurance covers it. Accidents can happen, and you should be prepared for them.
Disappearance
You never know what can happen. If a piece of jewellery suddenly disappears without a trace, it could be anywhere. Whether it’s been lost, stolen, or misplaced, it’s covered.
Keeping your valuable possessions is a top priority. However, you want to ensure you protect your personal belongings while getting the appraised value back. After all, accidents can happen from time to time. With that said, you should also know what jewellery items your insurance provider will compensate you for.
Jewellery items your insurance provider will compensate you for
Many types of jewellery exist, and each one can be covered by an insurance policy. Similar to wedding insurance, you’ll need insurance for an expense like a new piece of jewellery. It’s important to keep in mind that to make jewellery insurance work, your item has to fall under one of the following categories:
- Wedding rings or wedding bands
- Engagement rings
- Earrings
- Necklaces, chains and pendants
- Class rings
- Wristlets, armlets, bangles and bracelets
- Diamonds and precious stones
- Antique jewellery
- Watches
- Tiaras
- Cufflinks
- Brooches
With that in mind, you’ll want to insure any precious metals that have monetary value. Proper coverage will prevent your treasured possessions from disappearing and costing you a pretty penny to replace. Asking an insurance broker for a jewellery insurance quote will ensure it is adequately covered. Next, we will discuss the limitations and restrictions of jewellery insurance.
Jewellery insurance restrictions
The majority of home, tenant, and condo insurance policies limit the amount of jewellery included in the policy. The limits can range from $6,000 to $10,000, depending on your policy and insurance company. These amounts are also subject to a deductible. These policies might also cover high-value items like art and coins, fur coats, and bicycles outside of jewellery. Luxury handbag insurance also exists for those who love their purses.
When jewellery insurance cost does not provide adequate coverage
Insuring jewellery can be costly, which is why you will need a Personal Articles coverage on your policy if your collection is higher than your policy limit. Insurance companies do not offer deductibles for jewellery insured through a Personal Articles Floater, making it a great option. You can also consider purchasing blanket coverage to insure multiple pieces of jewellery together. Premiums, coverage limits and deductibles depend on your insurance company. Ask your broker about the coverage you need to find out more.
Create an inventory of all your valuable jewellery to determine the full replacement value. Take photos of each piece and keep the photos in a safe place along with receipts. Your insurance company will require proof of value if your jewellery gets lost, stolen or damaged. A valid appraisal from a professional appraiser is the best way to determine the current replacement value. You should update these appraisals every three years when insuring jewellery to get the appropriate value if something happens.
If you have an extensive jewellery collection, you may want to consider extra coverage to ensure your whole collection is properly protected. It’s regarded as a personal insurance claim in most cases. There’s a high likelihood that these are some of your most prized possessions, which is why you’ll want everything to remain safe, even if it’s not automatically covered. With that in mind, we will discuss what isn’t covered by jewellery insurance.
Scenarios jewellery insurance will not cover
As mentioned earlier, jewellery insurance has restrictions like those of its counterparts. It’s important to keep these in mind when purchasing insurance. After all, you wouldn’t want to make one of these mistakes and invalidate your policy. Here’s what you need to know about the aspects not covered by jewellery insurance:
Basic wear and tear
As jewellery ages, it becomes vulnerable to rust and other forms of damage. If the cause is naturally occurring, your insurance company will not compensate you for the repair or replacement costs.
Loss, damage or left due to war or military action
We’re proud to support our Canadian troops every day of the year. However, jewellery insurance will not cover parts of your collection affected by a war or military action.
Purposely damaged jewellery
Deliberately damaging your property and attempting to file an insurance claim is considered fraud. It is illegal and purposely damaging your jewellery for compensation fall under this category.
Pest damage
Bugs can be a real pain. Unfortunately, species like termites are naturally attracted to materials like wood, which is often found on jewellery boxes. If this or any other scenario causes damage, your insurance company will not cover it.
Exclusions listed on your plan
Like every insurance plan, jewellery insurance has restrictions. Remember to read over your policy carefully to avoid having your claim denied. Policies often have limitations on what and how much they can cover.
Additional insurance can provide worldwide protection for your jewellery. You wouldn’t want to risk paying for the full value of your wedding ring out of pocket. That’s why you should occasionally review your existing policy to avoid having issues during the claims process. Next, we will suggest tips to keep your jewellery safe from perils.
Tips to protect your jewellery
Even if you opt into additional coverage and pay a separate deductible, you might not get a cash settlement if you don’t make an effort to keep your jewellery safe. There are ways to protect your jewellery that are similar to preventing car theft. Being careful is important, especially if you own a family heirloom. That’s why we have compiled a list of helpful tips for protecting your jewellery:
Create a list
If you have a large collection of expensive jewellery, you should create an inventory. This will help you in the event of a fire or theft. Keep and photograph receipts, including online electronic receipts. You should also take pictures of the jewellery itself while recording important details such as the type, date of purchase, value, and description somewhere safe.
Appraise and document heirlooms
Find a licensed jewellery appraiser to evaluate your most expensive pieces of jewellery. It will determine how much a piece is worth, which is necessary for insurance purposes. The written appraisal should include a description of the quality and value of the piece.
Keep your jewellery somewhere safe
Consider investing in a safe or lock box for your jewellery. You should keep it hidden away out of sight and secure it with a combination lock. If you don’t have access to a safe or lock box, consider hiding your jewellery in different places to avoid having it stolen. This is one of the most important preventive measures you can take.
Stay at home when services are being performed
Ideally, you shouldn’t invite strangers into your home at all. However, we all require home repair and other services from time to time. You should always be at home when these services are being performed because it lowers the chances of theft.
Invest in a security system
Jewellery stores often have high-tech security systems to protect their inventory and prevent theft. Your home shouldn’t be any different if you have an extensive collection of jewellery. Doorbells and security cameras make your home less of a target for robbery when you’re away. These features can also assist you when paying for high-value home insurance.
Alongside these measures, you should invest in jewellery insurance. It will help you whether you have a couple hundred or a couple thousand dollars worth of jewellery in your home. It’s something that’s often overlooked and shouldn’t be due to the high replacement cost. With that said, having the right coverage for individual pieces is essential. Why take the risk when you don’t have to?
Contact BrokerLink for a quote today
Accidental damage and accidental loss are all too common when it comes to jewellery. That’s what makes the cost of insurance worth it. By evaluating the value of your collection and understanding the coverage you need, you can protect your jewellery in the long run.
Whether you have an existing collection or have recently acquired a new piece of jewellery, be sure to contact your BrokerLink broker. We’ll review your current insurance policy and help to ensure your precious items are properly covered. Contact us for the best jewellery and home insurance advice today!
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