| Jewelry insurance comes in many forms | | | | replace your jewelry or make a cash |
| and varieties and only an insurance | | | | settlement based on the insurance |
| agent can provide accurate and specific | | | | company's cost to replace your item. |
| advice. However, it helps to know | | | | The insurance company's liability |
| enough about jewelry insurance to ask | | | | ceiling is set at the "insured value" on |
| your agent the right questions and to be | | | | the appraisal. |
| aware of how the process works. The | | | | Do you have enough jewelry insurance? |
| time to ask your insurance agent the | | | | The answer depends on what kind of |
| questions is before you insure an item, | | | | policy you have, the "insured value" is |
| not when you need to file a claim. Read | | | | on the appraisal, the settlement |
| the fine print in your insurance | | | | procedure is for your particular policy, |
| contract to be sure it provides the | | | | and the accuracy of the information on |
| coverage you expect. | | | | your appraisal. If you have a jewelry |
| Understanding jewelry insurance begins | | | | item valued at more than the $1500, you |
| with recognizing the difference between | | | | should definitely consider scheduled as |
| scheduled and unscheduled property. | | | | opposed to unscheduled coverage. |
| Unscheduled property (jewelry not | | | | The critical issue for scheduled |
| specifically listed) is typically | | | | property coverage is the how accurate is |
| included in basic homeowner or renter's | | | | the information on the appraisal. |
| policies under blanket coverage. There | | | | 1) If the information on the appraisal |
| is a usually a deductible (typically | | | | is vague and general, the insurance |
| $500) and a maximum amount of coverage | | | | company can replace the item with an |
| (typically $1500) although these amounts | | | | item that satisfies the description but |
| can vary with the specific policy. This | | | | perhaps is not the quality and true |
| type of coverage does not require an | | | | value of the lost item. Be sure your |
| appraisal but sales receipts, written | | | | jewelry appraisal has a detailed and |
| descriptions or photos are beneficial in | | | | accurate description of the jewelry |
| proving the items existed and estimating | | | | item. |
| their replacement value. | | | | 2) If the appraisal value is |
| Scheduled property (jewelry specifically | | | | artificially high, the insurance company |
| listed) is included in a floater, rider | | | | can replace the item at their cost even |
| or endorsement to homeowner or renter's | | | | though the client paid premiums for |
| policies. Jewelry insurance is also | | | | years on a value twice as much. This is |
| available with a separate policy, from a | | | | often the case for purchases from a |
| company specializing in jewelry | | | | jewelry store with prices double other |
| insurance. For scheduled property, the | | | | retailers and the store provides an |
| insurance appraisal is vital because it | | | | insurance appraisal even higher than the |
| describes the jewelry item and provides | | | | purchase price. You do not need an |
| the "insured value" that is used in | | | | appraised value more than 150% of the |
| determining the premium you will pay to | | | | price you would pay at low priced online |
| insure the item each year. Most | | | | retailer. |
| scheduled property policies do not have | | | | 3) If the appraisal value is too low, |
| an automatic appreciation adjustment as | | | | the insurance company can make cash |
| is common for the house and other | | | | settlement that might not cover the |
| unscheduled property. Therefore, even | | | | current replacement cost of the item. |
| if it might cost 50% more to replace an | | | | This could be the case for items |
| item in five years, the "insured value" | | | | purchased three or four years ago from a |
| is still only that stated in the | | | | low price online retailer and the |
| appraisal. | | | | appraised value was at or below the |
| If you file an insurance claim, the | | | | purchase price. With diamond prices |
| settlement process and amount paid will | | | | increasing about 10% a year recently, it |
| depend on the policy and in particular, | | | | does not take long for appraisal values |
| if the policy allows replacement or | | | | to be out of date if too close to online |
| agreed value settlement. For agreed | | | | retail purchase prices. Be sure to have |
| value policies, the settlement amount is | | | | your jewelry insurance appraisal updated |
| stated in the policy whereas replacement | | | | every four or five years so you do not |
| value allows the insurance company to | | | | end up underinsured. |