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If you are planning to give your spouse expensive jewelry this Valentines Day or to present your sweetheart with an engagement ring and a proposal, be sure that your gift is properly insured. Here are six tips for insuring jewelry to be sure that it is fully covered.
Check Your Existing Coverage
Start by checking your homeowner's or renter's insurance policy. It may provide limited protection for jewelry as part of its personal property coverage. If so, get the details from your insurance agent. In particular, find out how much protection it provides, whether it only covers replacement of the jewelry or provides for a cash settlement, whether you need an appraisal, how complete the coverage is (does it include theft, loss and damage) and whether it covers the jewelry wherever it is (at home, when being worn outside the home and when you are traveling). Also, if your policy includes replacement coverage, find out if you have to use a jeweler chosen by your insurance company.
Investigate Other Jewelry Insurance Options
If your policy doesn't cover jewelry or its jewelry coverage is inadequate, investigate other jewelry insurance options. You probably can purchase a jewelry rider from you homeowner's or renter's insurance provider to cover jewelry. If so, check the same details mentioned above to be sure that the coverage is comprehensive. Also, find out what the deductible is. Another option is to purchase a separate jewelry insurance policy from a specialist, although this probably makes the most sense if the total value of the jewelry to be insured is high.
Comparison Shop
Do some comparison shopping before purchasing jewelry insurance, since rates for comparable coverage may vary widely.
Safeguard Jewelry
Take steps to protect valuable jewelry when it is not in use. Keep it in a locked box or even a safe at home or, if you use it infrequently, in a safe deposit box at your bank. If you travel, put valuable jewelry in the hotel safe until you need it, and don't broadcast that you have valuable jewelry with you.
Protect against Loss
While some losses are unavoidable, you can reduce the chances you will lose jewelry by making sure that rings fit properly and aren't too loose, by checking clasps on bracelets, necklaces and broaches to ensure that they are in good shape and close securely, and by replacing faulty clasps as necessary.
Keep Appraisals Up-To-Date
Keep detailed records of all your valuable jewelry, including photographs and appraisals or sales receipts. Have them reappraised every few years by a certified gemologist. Frequent appraisals not only will help you ensure that you have adequate coverage but also that you have an up-to-date appraisal that an insurance company will accept.
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