Is Jewelry Insurance Worth it?

Some people say they are never fully dressed or aesthetically presentable without putting on their jewelry. But would you feel comfortable wearing your finest and most valuable jewelry without insuring it first?

After all, we get insurance for various things in life to function efficiently and reduce risk. We insure our cars and homes. Or we get a life or health insurance. Most of us get life insurance through our jobs.

How many of you get traveler's insurance for whenever you travel? Did you know that the pet insurance industry is worth over $2 billion? Over three million American dogs, cats, and other kinds of pets were insured in 2020.

And the average American paid anywhere between $200 to $600 annually on pet insurance premiums.

So, getting your jewelry insured is not an out-of-the-ordinary thing to do. Over 38% of jewelry owners have jewelry insurance.

The point is to consider whether getting jewelry insurance is worth it for your personal circumstances? It does not make sense to get non-valuable costume jewelry insured for sentimental reasons.

However, getting jewelry insurance is fraught with bureaucratic hurdles and documentation processes. You can't get your jewelry insured collectively. And depending on the policy, you won't be reimbursed the total value of any lost jewelry.

Don't worry; we got you covered. We will tell you what you need to know about jewelry insurance. And we will also compare a few policies you can consider.

And we will answer the question; is getting jewelry insurance worth it?

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What is Jewelry Insurance?

Man sitting at table signing insurance policy.

Jewelry insurance is a type of insurance policy that you can get to insure your jewelry against damage, loss, or theft. You should get this kind of insurance if you have valuable jewelry worth thousands or tens of thousands of dollars.

Jewelry insurance for less valuable jewelry is very affordable. However, you will have to deal with bureaucratic hurdles to maintain the policy for sentimentality more than financial value.

You must decide whether it is worth the bureaucratic hassle in that case.

Also, the method by which you insure your jewelry will come with its own exacting conditions and rules. No two jewelry insurance policies are alike.

There are several ways to obtain jewelry insurance; here are the three most common methods.

Homeowners Insurance

A conventional homeowners insurance policy covers a variety of risks that can inflict damage to your home and depreciate its value. Did you know that most homeowner insurance policies will cover jewelry stored in the house?

Since jewelry is a common item stolen in home burglaries or opportunistic theft, they are covered. Unfortunately, the policy limits for jewelry reimbursement are meager in homeowner insurance policies because they are so easy to steal.

You won't be covered for the total value of the stolen or damaged jewelry. Your jewelry may fall under the coverage umbrella of items in the home, but the insurance company will consider it "non-essential."

If your jewelry is stolen from your house, the policy payouts range between $1,000 to $6,000, depending on your coverage.

If your $20,000 diamond necklace gets stolen, then you might get an insurance payout of $2,000.

And your jewelry is only covered if it is damaged or stolen inside your home. If your jewelry is damaged or stolen on the street or while you are on vacation, then your homeowners' insurance won't pay for it.

This kind of jewelry insurance is best if your jewelry has a value of less than $6,000.

Insurance Floater

A jewelry insurance floater is a form of supplemental insurance added to your homeowners' insurance policy. You have to pay more money for them. But once you have it, your jewelry will be insured anywhere, not just inside your home.

An insurance floater is also known as a "personal articles floater." And the term "float" refers to the fact that coverage follows your jewelry anywhere you are, not just inside your house.

A jewelry insurance floater will cover close or up to the exact financial value of the jewelry you insure.

However, nothing is ever that easy, especially when protecting your jewels.

For this policy to be practical for your needs, you must itemize every piece of jewelry you own. And you must get each item appraised. You should probably get each item of jewelry photographed as well.

Keeping the receipts for each article of jewelry might be a good idea too.

And that's not all; you may have to get every item of jewelry you own itemized, appraised, and photographed annually. You don't have to do this. However, the insurance company may only reimburse you relative to your last itemization, appraisal, and photographing process.

Imagine you stopped itemizing and documenting your jewelry three years ago, and your jewelry got stolen today. The insurance company may calculate its own payment for you based on your last itemization and documentation process and not what you say it's worth.

Specialized Jewelry Policies

There are many insurance companies that specialize in only insuring jewelry. Each jewelry insurance company has its own conditions for coverage, and no two are alike.

And most of these jewelry insurance companies will cover the total value of your jewelry or up to $50,000. Your premium rate will be 1% to 2% of the total value of all the jewelry you are insuring.

You will have to itemize, appraise, and photograph your jewelry for most companies.

Should You Get Jewelry Insurance?

Close-up image of a large ring with blue ruby in the center.

Over 27% of people who own jewelry worth $10,000 or more do not have jewelry insurance.

If you have precious jewelry, getting jewelry insurance might be worth your while. But if you have jewelry less than $6,000, check your homeowners' insurance to see if it is covered.

Whether getting jewelry insurance is worth it depends on your patience for constant itemizing, documenting, and photographing the jewelry to keep the policy up to date.

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Related: POPULAR 80S JEWELRY TRENDS

How Much Should You Insure Jewelry For?

When it comes to insuring your jewelry, there is no one-size-fits-all answer. The amount you should insure your jewelry for depends on a number of factors, including the value of the pieces and your insurance provider's coverage limits.

That said, it's generally a good idea to insure your jewelry for at least its replacement value. This coverage level will ensure you're compensated for the total cost of replacing your pieces if they're damaged or lost.

If you have particularly valuable pieces, you may want to consider insuring them for their insured value, which is the amount your insurer agrees to pay in the event of a loss. This full insurance can be more expensive, but it can provide greater peace of mind in case of theft or other disasters.

Be sure to talk with your insurance provider professional about your specific coverage needs and find out what options are available to you.

Do Most People Insure Their Jewelry?

No, most people do not insure their jewelry. While it's a good idea to have insurance for your jewelry, many people don't bother because they either don't own very valuable pieces or don't think their insurance provider will cover them in the event of a loss.

Does Jewelry Insurance Cover A Lost Stone?

No, jewelry insurance does not typically cover a lost stone. Most policies will only reimburse you for the cost of repairing or replacing your jewelry if it is damaged or lost. However, it is worth checking with your current insurance providers to see if they offer any coverage for missing stones. Furthermore, you may also need to reach any deductibles before the insurance covers this.

How Soon Can You File A Claim After Getting Jewelry Insurance?

When it comes to jewelry insurance, most policies do not have a wait time to file a claim. However, filing as soon as you notice any damage or missing items is best. This quick decision will help ensure that you are compensated for the total cost of repairing or replacing your jewelry.

Can I Insure My Ring For Less Than the Appraisal Value?

It is possible to insure your ring without an appraisal letter, but you may need to provide other documentation to prove the piece's value. This could include receipts, pictures, or a description of the item. Be sure to talk to your trusted insurance provider to see what is required and what options are available to you.

How Often Should You Appraise Your Jewelry for Insurance?

Ideally, it would be best to appraise your jewelry for insurance purposes every two to three years. However, if you have valuable or unique pieces, you may want to appraise them more often. It's also ideal to review your policy regularly and ensure that the coverage amount still aligns with the current value of your jewelry.

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Furthermore, if you make any changes to your pieces between appraisals, you may want to update the policy to reflect these changes. This could include getting a new setting for a ring or adding more stones to a necklace.

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