Jewelry Insurance 101: Coverage, Cost & FAQs

If you own an expensive engagement ring, treasured family heirloom, or designer jewelry piece, you might avoid wearing it regularly because of the possibility that it may become lost, damaged, or stolen.

While relatively inexpensive, everyday jewelry is often covered by the personal property portion of your homeowner’s insurance, but it’s a good idea to purchase a separate jewelry insurance policy for high-value pieces. Jewelry insurance covers theft, loss, or damage to any jewelry you choose to list on your policy, and it typically pays out the full value to replace lost or stolen items.

Read on to learn more about how jewelry insurance works, what it covers, and how it compares to your homeowner’s policy.

What Does Jewelry Insurance Cover?

Jewelry insurance covers theft, loss, or damage to pieces of jewelry that you choose to list on your policy. Some examples include engagement rings, wedding rings, family heirlooms, or designer pieces.

Jewelry insurance covers losses, also known as “mysterious disappearances.” This means you’ll be protected if your covered jewelry goes missing, even if you don’t have a clear explanation of how it happened.

In addition to loss, jewelry insurance typically covers the theft of your insured pieces. Your coverage kicks in no matter where the theft takes place. For example, you’ll likely be covered even if your jewelry is stolen while abroad.

Jewelry insurance also covers accidental damage. This includes cracked stones, bent prongs, broken chains, and more. Perhaps you have a mishap at the gym, or your jewelry is damaged due to a flood, fire, or other disaster. If damage occurs due to a covered event, your jewelry insurance will cover the expense to repair it.

Damage to jewelry can include stone loss, which is also usually covered by jewelry insurance. If your stone falls out of its setting and you can’t find it or it can’t be set back in place, you can file a claim with your insurer.

Some jewelry insurance policies may cover preventative maintenance. This can include minor repairs, such as tightening loose stones or retipping prongs.

What’s Not Covered by Jewelry Insurance?

It’s important to understand that while jewelry insurance can protect your jewelry in the event of loss, theft, or damage, there are some circumstances it won’t cover, including:

• Intentional damage or loss
• Cleanings
• Damage as a result of wear and tear (e.g., thinning bands or worn-down clasps)
• Damage that was present before the policy took effect
• Manufacturer defects
• Routine maintenance (though this is covered by some policies)
• The rest of your jewelry collection — only pieces named on the policy are covered

How to Insure Jewelry: 4 Easy Steps

1. Save Jewelry Files/Photos

Save all of the receipts in a secure file. If you have a diamond grading report, great! Save that, too. Take photos of your expensive jewelry. Keep these documents all together in a safe place and in a digital file as part of your home inventory. Don’t have an inventory yet? Here’s how to make one.

2. Get an Appraisal

When people ask about insuring jewelry, they’re sometimes surprised to hear that bringing in a store receipt is not enough. Unfortunately, you’ll have an extra errand to run: getting an appraisal from a reputable jeweler. This often requires making an appointment and, yes, you guessed it — paying the appraiser/gemologist. Make sure you understand the process and price beforehand. For example, can the appraiser do the job in front of you, or will you need to drop your jewelry off? In the second case, allow yourself enough time to complete a “take-in” sheet and possibly a “plot diagram,” if necessary, so there are no concerns about your piece getting switched. Hourly rates for jewelry appraisal range from $50 to $150, according The Knot, which offers this helpful article on wedding ring appraisal

3. Visit a Local Insurance Agent

Call your Massachusetts insurance agency and schedule an appointment to review your jewelry coverage. You don’t have to visit the agent in person, but an office visit might be more convenient for those who need help creating or saving the digital files mentioned in the first step.

4. Ask about a “Floater” or a “Rider”

There are two ways to cover expensive jewelry. Most people will already have some coverage through their MA home insurance or MA renter’s insurance. However, those policies are limited to a certain dollar value, usually just a few thousand dollars. So if your jewelry is worth more than $1,000 or $2,000, you might not have full coverage. If you wanted, you could ask your agent about raising these standard limits, but home insurance only steps in to help you with specific types of losses (e.g. burglary or fire). If you simply lose your jewelry, or inadvertently leave it someplace, you’d probably be out of luck. So we tell clients to ask about getting a “floater,” instead.

A floater or rider is a piece of coverage that gets added to your home or renter’s insurance. It can protect you against accidental losses — like a diamond stud that falls out of your ear or an engagement diamond that falls from its setting. (You would also be covered against theft, fire, flood, etc.) With floaters, you usually don’t have to pay any deductible, either — so no out-of-pocket costs when replacing your valuable jewelry.

What Are the Expected Costs of Jewelry Insurance?

Once you’ve set up your jewelry insurance policy, you pay a monthly premium that is based on your jewelry’s value. On average, jewelry insurance costs 1–2% of the jewelry’s value per year. For example, if you insure $5,000 worth of jewelry, you may pay an annual premium of $50–100.

When Will Your Policy Kick in?

When a piece of your insured jewelry is stolen, lost, or damaged, your policy goes to work:

• If your jewelry is stolen, your insurer may pay to replace it for its appraised or agreed value.
• If your jewelry is lost, your insurer may pay to replace it with a piece of equal value.
• If your jewelry is damaged, your insurer may cover the cost to repair it.

To receive a payout, you’ll first need to file a claim by contacting your insurer or agent. They will likely ask you to provide proof of ownership, such as receipts, photos, and appraisals. Your insurer will then review the claim and either reimburse you or coordinate with your jeweler to repair or replace the item, as outlined in the terms of your policy.

Jewelry Insurance vs. Adding Jewelry to Your Homeowners Insurance

Instead of purchasing a jewelry insurance policy, another option is to add jewelry items as riders to your homeowners or renter’s insurance policy. This is often a good option if your collection is lower in appraised value.

Adding a rider to your homeowner’s policy is less expensive than purchasing a separate jewelry insurance policy. However, it comes with lower coverage limits and possible exclusions. Jewelry insurance typically covers pieces up to their full appraised value, while homeowners or renter’s insurance may have a cap for a jewelry rider.

There are also some exclusions that come with adding jewelry as a rider to homeowner’s insurance. For instance, homeowners policies only cover named perils, such as theft and fire, and may exclude other events that could damage your jewelry. Homeowners and renter’s insurance also may not cover your jewelry when you travel overseas.

Another benefit of jewelry insurance is that claims typically don’t affect what you’ll pay for homeowners insurance. Whereas if you add jewelry as a rider to your policy, claims for lost or damaged jewelry could raise your premium.

When making the choice between jewelry insurance or adding a rider to your homeowner’s insurance, also consider the deductible. While jewelry insurance usually has a $0 deductible, a deductible typically applies to jewelry riders when added to your homeowner’s policy.

Should You Purchase a Jewelry Insurance Policy?

In general, it’s a good idea to opt for a jewelry insurance policy if:

• Your jewelry is difficult or costly to replace
• Your jewelry is worth more than $1,000
• Your jewelry has sentimental value
• You want to feel free to wear your high-value jewelry wherever you’d like, including while traveling internationally

How to Choose the Best Jewelry Insurance Company for You

Though it’s possible to buy coverage from national companies without any assistance from a licensed agent, that’s not always the best option. Instead, we recommend selecting a provider that’s already familiar with your insurance policies as well as working with a licensed, reputable agent you can trust to go above and beyond to help.

At C&S Insurance, we specialize in serving the Bay State, and we act as advisors and advocates working on your behalf. We have specialized insurance agents who understand the intricacies of jewelry insurance, and we’ll review your policies for accuracy at least twice a year to make sure you understand your insurance costs and receive the best coverage at the best rates available in the market.

Get in touch with our team today for a quote.

FAQs

Is jewelry insurance worth it?
Jewelry insurance is a smart investment when you consider the number of ways your valuables can get lost, stolen, or damaged. Knowing that your jewelry is covered will also provide you with peace of mind.

Does jewelry insurance have a deductible?
With jewelry insurance, you may have the option to forego a deductible (meaning there is no part of the repair or replacement you’ll have to cover yourself).

How does jewelry insurance work?
Jewelry insurance works by covering specific pieces that you list on your policy. To start, you can choose to have a blanket or a scheduled policy. A blanket policy covers multiple items, up to a per-item limit and is best for everyday pieces. With a blanket policy, you may not need an up-front appraisal of your jewelry. On the other hand, a scheduled policy covers individual high-value items. For this type of policy, you’re usually required to provide appraisals and detailed documentation of each piece, including receipts and/or photos.