When To Use Your Jewelry Insurance

Do you have your jewelry insured? Clients often ask if we recommend insuring specific pieces and generally speaking, we think it's a great idea. That being said, not all jewelry needs to be insured (in our opinion) and we recommend being prudent in how you utilize the coverage. Here are our professional recommendations for your consideration:

1. Insure pieces that you would feel a true financial gut punch if you lost, not necessarily pieces you would simply be sad to lose. 

Remember, insurance covers the financial value of a piece but it does not cover the sentimental value. Sometimes, clients seek insurance for items more on a sense of sentimental value rather than their true dollar value and end up paying premiums on pieces where the math just doesn't add up. Everyone has a different limit on what a "financial gut punch" would feel like, but generally speaking, you want to consider things like whether you inherited the piece or purchased it yourself and what it would take for you to replace it on your own if you lost it.

2. Review your homeowner's policy and ask your broker to talk through what your current policy would cover. 

Chances are, your homeowner's policy will cover up to a certain amount of lost or stolen goods, so tally what you own and decide if your jewelry runs the risk of leaving you exposed. Also, ask them if your homeowner's policy would cover the piece if it was lost or stolen outside of your home. Some policies have limitations on exactly which circumstances will kick in coverage and you'll want to think about if you lose the piece outside of your home.

3. Thoroughly review the policy regarding repairs and decide if you need this layer of insurance at this time. 

Certain jewelry policies play up their coverage on items such as lost diamonds or cracked shanks and in some instances, this might be a good idea. Remember, though, that if you worked with us on a new design, we provide a very comprehensive guarantee that will cover lost diamonds for a full year after we make the piece. You don't need to file a claim with your insurance company if your jeweler already guarantees the piece, so make sure you reach out to your jeweler if you run into a repair issue and see what they say.

4. You may need to appraise your piece to get it insured, and appraisals do cost money. 

We don't have the bandwidth to appraise pieces we didn't make so this doesn't really pertain to us as a business, but you should remember that any appraisal you seek will cost money to obtain. If you are hedging on spending money on the appraisal then it might not be worth insuring in the end. Also, if you need to get the piece repaired or restored, wait until after you do this to appraise it. The appraisal will note any deficiencies in the piece, so if you subsequently repair that damage then your appraisal will undervalue the restored piece. 

5. But, you may not need an appraisal to insure the piece. 

If it's a new purchase, the receipt from the purchase might be sufficient. Make sure you ask your broker what they need before spending the time and money on obtaining an appraisal.

In the end, talk to your broker and do your research with different agencies to determine the best fit for your needs. We caution signing up with insurance companies that sell their products directly through jewelers because often those policies are a bit overwrought for what the client actually needs (and commissions are made on that sale, so your jeweler is incentivized to sell you this product that might not be the best fit for you). Working with a jeweler who guarantees their pieces is key, so tread carefully when investing in your gems.