If you consider factors like low premium and broad coverage, then insuring your jewelry with a policy can be a worthwhile idea. There is a component of jewelry insurance within the homeowners insurance, but usually, the value for the covered jewelry is very low. So in case of a claim, it is better to have a separate insurance policy that would yield more coverage for you.
Benefits of insuring jewelry with a separate policy:
In a separate insurance policy for jewelry, each item is listed along with a short description of the value of each piece. In case you lose any jewelry piece or some damage is caused during its repair, then with the insurance you can have it repaired or replaced with the help of the descriptive list.
Jewelry insurance procedure:
The insurance industry is usually governed by the state laws. The type of language that is used in the contracts is also mandated by state laws. Before choosing a policy, make sure that you contact a local agent and get information on the procedure. A minimum premium is applicable annually, depending on the insurance company.
Always remember that your jewelry should be evaluated by a professional so that there are no errors as such when you take a new policy or get the existing policy renewed. Ask your insurance agent about the claim procedure. If you ever lose any jewelry piece then you must know whether you will be paid the appraised value or not and whether there will be any deductions.
Try and make a note so that you know whom to approach for a claim. Clarification of special causes must be done when you insure your jewelry. Try finding out if your policy will cover the entire set in case you lose just an earring. Premiums will be based on the place where you are living.
Many insurance companies charge premiums that are based on the jewelry’s value. If it is very expensive, the premium will also be high. It is a good idea to get your jewelry insured from the company that has insured your car and house. This will help you in negotiation of a better deal.
There is one thing you must know about insurance companies. The amount that the claimant is paid is always a sum that will cost him to replace the item and not the value that has been insured. If the appraisal was for a particular amount, the compensation will be the cost for replacement, something less than the value insured.
If a piece is damaged, you will get an offer for repair by the company. In case of theft, you will be given a replacement with an item of the same quality. There can be several variations in the settlement options provided by different companies, so be careful. Don’t think that the company will simply pay you the amount that was appraised, in case you make a claim. The value that is appraised is only the amount that the company is liable for and not what you will get.