You’d probably prefer not to think about your jewelry being damaged, destroyed, or lost during a catastrophe, but it’s prudent to be prepared.
Whether you’ve spent years building your fine jewelry collection or have recently acquired your first exquisite piece, you should insure each item of value, just in case the unexpected happens. To do that properly, you must have your jewelry appraised for insurance purposes.
Here are five reasons why you should consider a jewelry appraisal for insurance purposes:
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Appraisals Are Important to the Insurance Process
If you have a sentimental attachment to your most cherished jewelry pieces, you’ll love them no matter their worth. Still, determining the value is important, especially when purchasing insurance.
- You need to know if your Homeowners Policy jewelry limit will cover them or if you need a valuable items endorsement or a separate policy.
- If you need a special endorsement or policy, underwriters will base your coverage amount on the appraised value of your jewelry.
- Your insurance premium will be based on that same value.
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Personal Property Vs. Scheduled Property
A homeowner’s policy does not insure jewelry under the personal property section of your policy. To insure jewelry correctly, you either have to get it listed as a scheduled item on your homeowner’s policy or acquire a specific valuable articles policy for such items. Both coverage options will require you to have a detailed appraisal of the items that are not more than 3 years old.
Advantages of Scheduling your Jewelry Appraisal for Insurance:
- Broader Coverage: Scheduled items will be covered for additional risks, including accidentally losing your scheduled jewelry (for example, losing your engagement ring while on vacation) which would not be covered under a standard homeowner’s policy.
- Replacement Cost Coverage: The insurance company pays what it costs to replace your damaged property without reducing the payment with the amount of depreciation.
- No deductible: No deductible will apply if you file a claim for a scheduled item.
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A Sales Receipt Isn’t Enough
Insurance companies won’t accept a purchase receipt as a legitimate measure of value, and it doesn’t matter how much you paid for your jewelry. When writing a policy or paying a claim, the insurance company relies on the actual appraised value, not the cost.
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The Insurance Company Might Require Updated Appraisals
Even if your insurance company doesn’t require regular appraisal updates, you might want to get them anyway.
- It’s the best way to ensure you are insuring your jewelry at a proper value.
- If the market prices of precious metals, diamonds, and fine jewels rise or fall, it could affect the value of your jewelry.
- Vintage, antique, and collectible jewelry styles go in and out of trend, causing the values to fluctuate.
- Values rarely remain constant, and your policies should change accordingly.
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You May Still Have to Prove the Value In the Event of Loss
When you file a claim, the insurance company won’t simply write a check for the amount of coverage stated. They will verify the details before settling your claim.
If thieves steal your jewelry, they will want to see a police report. If you lose it or it disappears, they will want to know how and why. If you have no witnesses, they may decide to inquire with your friends and relatives about the same.
Regular appraisals can help you prove an insurance claim, and an appraiser can attest to your jewelry’s quality, design, condition, and valuation. The dated documentation can verify ownership and custody if a jewelry professional has inspected your collection several times over the years.
Before you take steps to insure your jewelry, contact an appraiser to evaluate your collection properly. Make sure the professional you choose is well-trained and can confidently handle the task.
Do you have jewelry that you haven’t appraised in a while? Contact guest blogger and independent jewelry appraiser Aimee Berrent to set up an appointment – 617-304-0174 – aimee@ambappraisal.com – ambappraisal.com
CAV Insurance has access to carriers like Chubb, AIG, and other companies that specialize in insuring jewelry and other valuable articles. Whether you have a single item or a large collection, CAV Insurance will help find you a policy that fits your needs. CAV Insurance has been insuring Jewelry in Weston, Wellesley, and the Metro-West area since 1955. Contact us to get valuable possession insurance.