You’d probably prefer not to think about your jewelry treasures 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 you’ve recently acquired your first exquisite piece, you should insure each item to value, just in case the unexpected happens. To do that properly, you must have your jewelry appraised for insurance purposes.
Here are 5 reasons to consider:
- 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 what they’re worth. Still determining value is important, especially when you’re 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.
- Personal Property Vs Scheduled Property
A homeowner’s policy does not insure Jewelry under the personal property section of your policy. In order to insure jewelry correctly, you need to have it listed as a scheduled item on your homeowner’s policy, or it needs its own specific valuable articles policy. Both coverage options will require that you have a detailed appraisal that is at no more than 3 years old.
Advantages to Scheduling your Jewelry:
- Broader Coverage: Scheduled items will be covered for additional risks, including accidentally losing your scheduled jewelry (for example, losing your enjoyment 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 and doesn’t reduce the payment due to the item’s depreciation.
- No deductible: If you file a claim for a scheduled item no deductible will apply.
- A sales receipt won’t do
Insurance companies won’t accept a receipt of purchase as a legitimate measure of value. 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.
- 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 make certain you are insuring your jewelry to its proper value.
- If the market prices of precious metals, diamonds, and fine jewels rise or fall, it could change the value of your jewelry.
- Vintage, antique, and collectible jewelry styles go in and out of favor, causing the values to go up or down.
- Values rarely remain constant, and your policies should change accordingly.
- You may still have to prove the value if a loss occurs
When you file a claim, the insurance company won’t simply write a check for the amount of your stated coverage. They will verify the details before settling your claim.
If a thief stole your jewelry, they will want to see a police report. If you lost it or it simply disappears, they will want to know how and why. If you have no witnesses, the insurance company adjuster may decide to talk to friends and relatives about you and your jewelry.
Regular appraisals can help you prove an insurance claim. An appraiser can attest to the quality, design, condition, and valuation of your jewelry. If a jewelry professional has inspected your collection a number of times over the years, the dated documentation can verify ownership and custody.
Before you take steps to insure your jewelry, contact an appraiser to properly evaluate your collection. For your peace of mind, make sure the professional you choose is well-trained and can handle the task with confidence.
Do you have jewelry that you haven’t had appraised in a while? Contact guest blogger and independent jewelry appraiser Aimee Berrent to set up an appointment – 617-304-0174 – firstname.lastname@example.org – ambappraisal.com
CAV Insurance has access to carriers like Chubb, AIG and other companies that specialize in insuring jewelry and other valuble 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.