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