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