5 Insurance Myths and Mistakes – Jewelry

Do you own a diamond engagement ring? Nice watch? Family heirloom? And are you worried about it? You should be! Unlike your other valuable assets such as home and car, your jewelry can be easily misplaced, lost or stolen, but unfortunately, a lot of people don’t think about it until it happens. There are several myths and mistakes that we have encountered regarding insuring valuables.

  1. I got my ring insured by the store where it was purchased so I am covered if it gets lost or damaged. – We have bad news for you. In 99% of cases, the store only insures the loss of a stone (i.e. when the stone falls out of the ring) but NOT the loss of the ring itself. This also usually requires annual or semi-annual cleanings and inspections at the same store or another authorized dealer. Review your policy carefully to see what is really covered!
  2. My jewelry is fully insured by my homeowners policy. – Unfortunately, homeowners policies have relatively low limits on jewelry loss, usually between $1500 to $2500 total and may not cover loss or mysterious disappearance. If your jewelry, one or more pieces cost more than the limit, you are not fully covered. In addition, claiming jewelry loss on your home insurance counts against you and may increase your insurance rates in the future. This is true even if you get a separate rider for increased jewelry coverage.
  3. I rarely wear my ring, so I don’t have to worry about losing it. – Not wearing your ring or other valuable jewelry often, certainly does slightly limit your risk of misplacing it and losing it, however, the risk is still there regardless if the jewelry is inside or outside the safe. Anytime you have it on, you may have to take it off, for instance, for medical reasons and treatments (such as getting an X-ray, CT, and MRI or due to injury), or to protect it from harsh elements like cleaning chemicals, mud or physical damage during work, sports or hobbies. You could also become a victim of a crime or your jewelry can get damaged during normal daily activities. Even when placed in the safe or vault, your jewelry may be damaged or lost due to a disaster. If you really wear it rarely, you can get a “vault coverage” policy, which is less expensive but you have to notify the insurance company every time you take your valuables out of the safe and when you put it back (and there is a limit on how many times you can do that in a year), which adds to the inconvenience. For more information, check out this article.
  4. I already paid so much for my jewelry and insurance is too expensive. Actually, jewelry insurance will cost you only about 1-2% of your jewelry value annually. So, for $10,000, this is $100 – $200 a year, or $8 – $16 a month. You probably spend more than that at a coffee shop!
  5. Getting my jewelry insured is too difficult, I don’t know how to do it. This one is easy! You can call us and we will take care of it for you. We can give you a quote estimate in 5 minutes and then we will do all the paperwork for you. Depending on the insurance company, we will need from you the following: photos (not always necessary), appraisals (usually necessary) and purchase receipt (if purchased within 2 years).

Great information about jewelry coverages can be found here.

Don’t wait until it is too late. You can get a peace of mind with a 5-minute phone call! Call us at 972-584-1286 or email us to get your jewelry protected right away!

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