Are You Covered By Your Jewelry Insurance?
Jewelry insurance comes in many forms and varieties and only an insurance agent can provide accurate and specific advice. However, it helps to know enough about jewelry insurance to ask your agent the right questions and to be aware of how the process works. The time to ask your insurance agent the questions is before you insure an item, not when you need to file a claim. Read the fine print in your insurance contract to be sure it provides the coverage you expect.
To understand insurance for jewelry, you need to know the difference between scheduled property and unscheduled property.
Unscheduled property (jewelry not specifically listed) is typically included in basic homeowner or renter’s policies under blanket coverage. There is a usually a deductible (typically $500) and a maximum amount of coverage (typically $1500) although these amounts can vary with the specific policy. This type of coverage does not require an appraisal but sales receipts, written descriptions or photos are beneficial in proving the items existed and estimating their replacement value.
Scheduled property (specifically listed jewelry) will normally be included in an endorsement, floater or rider to renter or homeowner’s policies. Insurance for jewelry is also available from a jewelry insurance company as a separate policy. An appraisal is required for scheduled property because this gives a description of the jewelry and the insured value.
If you should file an insurance claim, the amount paid and the settlement process depends on the policy, and if it allows agreed value settlement or replacement.
Do you have enough jewelry insurance? The answer depends on what kind of policy you have, the “insured value” is on the appraisal, the settlement procedure is for your particular policy, and the accuracy of the information on your appraisal. If you have a jewelry item valued at more than the $1500, you should definitely consider scheduled as opposed to unscheduled coverage.
The most important issue for scheduled property insurance cover is the accuracy of information which is on the appraisal.
The information on the appraisal should not be vague or the insurance company could replace an item of jewelry with one of less value and quality. Make sure that the appraisal is detailed and accurate.
If the appraisal value is too high, you might not be covered for that amount. This could be the case if you paid too much for the item at a jewelry store, and they provided an insurance appraisal which was too high. The appraisal value doesn’t need to be higher than 1.5 times the price of the item at an inexpensive online retailer.
If the appraisal value is lower than it needs to be, the jewelry insurance company may give a settlement lower than the price of replacing the jewelry item. This is a possibility if the item was purchased at a low price a few years ago. Appraisals can rapidly become outdated, and they need to be updated after a few years.
Sarah Carter’s site has a lot more articles about jewelry, including metals and stones for wedding rings and also wedding ring sets.