Did you know that your home insurance policy may not cover the full value of your jewellery? We’ve shared everything you need to know about making sure it's insured.
There are many misconceptions and questions floating around about insuring jewellery and that’s why we’ve taken the time to clarify everything for you.
Four common fallacies about insuring jewellery
Misconception #1 - My jewellery will be covered under my homeowner’s insurance policy.This is a dangerous assumption, as most home insurance policies will only cover your jewellery up to a certain dollar value. When it comes to those special purchases that are higher in value, such as an engagement ring, you want to make sure your investment is protected for the full amount.
Misconception #2 – It isn’t necessary to add a jewellery rider or floater to my insurance policy.Typically, the standard coverage included is minimal and may not cover the cost of high-value items. Simply put, if your jewellery exceeds your policy limit and something happens to it, you will not receive reimbursement for the full value. Therefore, depending on your situation a rider or floater may be exactly what you need.
Misconception #3 – If I speak with my insurance broker about my jewellery, the cost of my insurance will increase significantly.
This solely depends on your particular coverage and the value of your item(s). Think of it like this, the reason you purchase insurance is to protect yourself from potential financial burden should anything happen. If you’re not honest or transparent with your insurance broker they cannot ensure you’re protected adequately.
Misconception #4 – If I do insure my jewellery properly and something happens to it, I probably won’t get the full value anyway.
If you invest in an additional insurance floater/rider for a specific piece of jewellery, it will be protected and covered for all risks including if it’s lost, stolen, damaged or even if a stone or gem falls out.
The two most asked questions about insuring jewellery:
#1 What can I expect the cost to be to insure my jewellery?
It’s important to note that the cost of insuring your jewellery will depend on the value of the specific piece, where you live and what Insurance Company you have your policy with. The following is just an estimate for reference.
ENGAGEMENT RING COST ESTIMATE
The cost to insure jewellery is approximately $1.50 per $100.00 of the value (per year). So, if the value of your engagement ring is $5,000, you can anticipate paying $75.00 a year to insure it.
#2 What do I need to insure my jewellery?
This may be different depending on your Insurance Company, but generally, all that is required is an appraisal of the jewellery. Furthermore, because the value of jewellery often increases, your insurance broker may require additional appraisals over time – to guarantee you have the correct value covered.
Don’t just assume your valuables are protected. Be sure to evaluate what you currently have and assess if additional protection is required. We recommend that you contact your insurance broker as soon as you make a jewellery purchase so that they can walk you through the next steps.
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