Shopping for Jewelry Insurance: What to Know Before Purchasing a Policy

Everything you need to know before purchasing a jewelry insurance policy.

Maybe you were just gifted a beautiful, brand new diamond bracelet. Perhaps you purchased a diamond engagement ring for the love of your life. Or maybe you inherited a picture-perfect pendant with special meaning and value that goes well beyond money.

Either way, you want to make sure this precious piece of jewelry is protected in case of theft, loss or damage. You don’t want to even think of these things happening. But you do want to protect your jewelry and buy some additional peace of mind. In short, you want to insure your jewelry.

So…where do you start? How do you finish? What are some questions to ask and signs to look for — both positive and negative? Let’s take a closer look.

What do I want to insure?

While you’re likely hyper-focused on insuring a particular piece of jewelry that means the world to you, the pre-purchase phase presents an excellent opportunity to take inventory of your entire jewelry collection. If you insure all your items on one policy, you’ll only have to pay one annual premium. Of course, if you want to start with one single piece, Zillion can help you there — and give you the option to add additional jewelry items to your policy at a later date (at which point you would pay for the cost to insure an additional item through the end of the policy term). Upon renewal, all items on the policy would then renew — and you would have one single premium payment for multiple pieces.

So start by determining exactly what jewelry items you want to insure. Then you can go about determining how much the piece or pieces are worth, via what’s known in the industry as an “appraisal.”

What’s this appraisal process all about?

In addition to presenting an opportunity to insure your entire jewelry collection, this pre-purchase stage is also an excellent time to conduct an appraisal. Just like the ever-changing market price of a home, the value of the precious metals and diamonds in your jewelry collection are always in a state of flux. An appraisal provides you with a current value for your jewelry — prior to insuring it.

There are also specific questions you can ask prior to your appraisal appointment – including the cost of an appraisal, which should always be “fixed” and not based on a variable such as the final appraised value of your jewelry. Most retailers will provide an appraisal for your newly purchased jewelry, as part of the purchase — or for a small additional fee. If you come back into the store down the line, they’re also often happy to provide you with an updated appraisal. Of course, you can also opt to seek out the services of a private jewelry appraiser. A list of nationally recognized, certified appraisers can be found a https://www.americangemsociety.org/search/newsearch.asp

Professional jewelry appraisals need to include quite a bit of detail. Written statements that describe each piece should mention weights, grades, measurements, maker and metal and/or gem quality — along with notation of anything unusual. Professional organizations such as the Gemological Institute of America (GIA) also issue certification numbers, which should be clearly identified on the official appraisal form, along with your name and address. Photographs are often included, too.

What should this all cost me?

When it comes to jewelry insurance, there are actually two costs to be mindful of: your premium and your deductible. Let’s start by looking at the latter.

The deductible is the amount you’re responsible for if you need to file a claim. For example, if your deductible is $1,500, and your jewelry is lost, stolen, or damaged, you’d be responsible for up to $1,500 of the repair or replacement cost — and any additional costs within the coverage limit would be paid for by your policy. If you opt to insure your jewelry with Zillion, you’ll never need to pay a deductible when you file a claim. We’ve also done our best to ensure that your overall claim experience is as frustration-free as possible.

The second cost associated with jewelry insurance is your premium — in other words, the amount you pay for insurance coverage over a period of one year. Generally speaking, your premium should be somewhere around one to two percent of the value of your jewelry. Exactly where your payment falls along that scale will depend on several factors, including the value of your jewelry and the location of your residence.

Can’t I just use my existing insurance provider?

Possibly. But be careful what you’re getting into if you do. Some insurance companies allow you to add jewelry insurance to your homeowner’s or possibly renter’s insurance policy. If your home is broken into and jewelry is stolen by the burglars, then you may or may not be covered. And if your jewelry is lost or misplaced by you — or damaged or ruined in some sort of accident? Then you may be out of luck with your home insurance provider.

Companies who offer stand-alone jewelry insurance will also likely cover jewelry repair services if your jewelry is damaged due to an accident, in addition to any loss stemming from theft or burglary. If you’re unsure if your jewelry was stolen or misplaced, a dedicated jewelry insurance provider can also provide coverage for what’s known as “mysterious disappearance” — something possibly provided in a homeowner policy rider.

Learn more…

For more detailed information on the ins and outs, nuts and bolts and As to Zs of jewelry insurance, take a deeper dive into our Ultimate Jewelry Insurance Guide. Consider it your Go-to Guide for All Things Jewelry Insurance — ranging from coverage to cost to the claim process…and beyond!

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