Is Jewelry Insurance Worth It?

Even if you already have homeowners or renter's insurance, the coverage may be limited to your jewelry, even if you have a home insurance rider for jewelry. If you have cherished valuables that cannot be easily or affordably replicated, investing in jewelry insurance for engagement rings and other types of jewelry is a great idea.

Jewelry can be deeply personal, from an engagement ring to a treasured family heirloom. It reminds us of the most important moments and emotions in our lives, which is why having it stolen, lost, or damaged can be devastating.

Stay with us as we explain everything you need to know about jewelry insurance, from how it works to what it covers and how much it costs.

What Is Jewelry Insurance? 

A jewelry insurance policy provides far more comprehensive coverage than a standard homeowners policy. These typically provide coverage up to a much lower amount and only for stolen jewelry. A jewelry policy, on the other hand, will kick in whether your valuables are stolen, lost, or damaged. So, if you lose your ring while swimming in the ocean or inadvertently damage an antique bracelet, you may be out of luck with a standard homeowners policy, but jewelry insurance will almost certainly pay to replace it.

Many major insurance companies do not sell jewelry insurance separately. Instead, you simply add jewelry insurance to your existing homeowners or renters insurance policy. However, adding your jewelry to an existing policy usually necessitates listing each item individually, which means that if you forget a piece, it won't be covered.

If you prefer to have a separate policy, traditional jewelry insurance allows you to list individual values for each item and provide proof of purchase or worth based on appraisals. This is especially useful for anyone who has a large or antique collection of fine jewelry.

Do I Need Jewelry Insurance?

Unlike home, health, and auto insurance, jewelry coverage is not required for everyone. Here are some questions to ask yourself to determine whether you need jewelry insurance:

  • Certain types of jewelry have incalculable value. Would you be devastated if you lost sentimental items like your wedding band or an heirloom bracelet?
  • Would you want your jewelry repaired or replaced if it was lost, damaged, or stolen? (If so, how much can or are you willing to pay out of pocket?)
  • Are you afraid to wear your uninsured jewelry for fear of it being damaged?
  • Would you be unable to replace your jewelry if it was lost, stolen, or damaged?

How Much Does Jewelry Insurance Cost?

The cost of jewelry insurance is comparable to the cost of other types of insurance policies; however, the cost of jewelry insurance is determined by a few factors:

  1. You want to insure the value of your jewelry.
  2. The level of protection you require for your jewelry.
  3. Most people will pay 1-3 percent of the item's total value for jewelry insurance.

For example, insuring a $3,000 engagement ring could cost as little as $30 per year. If you need to insure a large amount of jewelry but want to lower your monthly premium, you can raise your deductible—the amount you pay before insurance kicks in. It's also important to understand that each state has its own set of laws and regulations, so your rate will vary depending on where you live. You can get a free quote from a home insurance provider who also offers jewelry insurance here to get an idea of what you should expect to pay. You might also be interested in learning how to get the best deal on engagement rings in order to keep your jewelry insurance policy rates low.

How to Find the Best Jewelry Insurance Policy?

If you've decided to buy jewelry insurance, there are a few things you should keep in mind as you look for the best jewelry insurance policy. When looking for a new jewelry insurance provider, ask yourself the following questions first:

  • How does your prospective insurance company handle claims? Will you have to buy a replacement and then request reimbursement, or will your provider pay you right away? Will you be able to afford to buy a replacement if you are required to do so?
  • What are the policy's exclusions? What kinds of losses and damages aren't covered?
  • What proof of loss, damage, or theft will be required?
  • Will the insurer cover the entire cost of replacement? How will they calculate the value of new jewelry, antiques, and custom-made pieces?
  • How frequently will you be expected to submit updated appraisals?
  • Do coverage limits change in response to the price of precious metals or gems?

What Does Jewelry Insurance Cover? 

Regardless of how little coverage your homeowners or renter's insurance provides, it's important to remember that it doesn't cover everything. Typically, a jewelry insurance policy will cover the following items:

What is Covered?

  • Loss: We've all experienced the agony of losing something we care about. If you leave your high school ring in an airport or public restroom, you can be confident that it will be covered by jewelry insurance.
  • Damage: Accidents happen. If you accidentally broke a treasured valuable, you don’t have to panic.
  • Disappearance: If you can't find your favorite luxury earrings, jewelry protection can help you replace them.
  • Theft: Did you lose your diamond necklace during a home invasion? Don't worry, that's taken care of.

What is Not covered:

  • Wear and tear: No matter how well you care for your jewelry, minor damage will occur naturally over time. Tarnishes and scratches are normal and will not be covered.
  • Intentional actions: This may seem obvious, but if you intentionally lose or damage your jewelry, insurance will not cover the cost.
  • Pests: They’re already a nuisance, but even if insects or rodents damage your best antique jewelry pieces, insurance won’t cover it. 
  • War and authority: Loss or damage caused by war, military action, nuclear hazard, or confiscation by civil authority is not covered.