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5 Misconceptions About Home Insurance Vs Specialized Jewelry Insurance

Chris Dier-Scalise
·5 min read

Last year threw the precious metals and jewelry market into greater prominence as the price of gold, silver and gemstones jumped in value alongside major players in the jewelry market like Signet Jewelers Limited (NYSE: SIG) and Pandora A/S (OTC: PANDY). And the recently announced acquisition of Tiffany & Co. (NYSE: TIF) by LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC: LVMUY) has helped further boost interest interest in the market.

But as the value of metals and jewelry climbs, it presents a question to those with material investments in the space, such as rings, necklaces or other precious heirlooms. Particularly, how to best preserve the value of those items and protect them in case of damage or theft.

While most people count on the scope of their renters or homeowners insurance policy to cover their precious assets, they may find that coverage insufficient in the face of a potential loss. In most cases, the value of a single broad policy is outweighed by that of specialized jewelry insurance policies like those offered by BriteCo, which offers comprehensive insurance policies that cost just between 1-2% of the total value of the items insured and guarantee you are able to fully restore or replace damaged, lost or stolen valuables.

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Contrary to popular belief, residential insurance policies often offer only fractional coverage for many of your home’s most valuable items. Anyone looking to best insure their precious possessions should consider these five common misconceptions surrounding home and renters insurance versus specialized jewelry insurance.

Misconception 1: Claiming A Jewelry Loss Doesn’t Affect Your Homeowners Insurance

Among the most common misapprehensions around homeowners insurance is the perception that a claim for lost jewelry won’t impact the cost or viability of their home or renter’s policy.

The truth is, there are an array of property-related claims that may negatively impact your coverage rate. Including theft, personal liability or water damage. Common claims such as this can result in policy increases of 7-10% or more in homeowners or renters insurance.

In contrast, a specialized jewelry policy from Brite.co provides a comprehensive appraisal of exactly how much coverage you need, generally just 1%-2% of the jewelry’s value. Overall, seeking an appraisal of precious assets ensures your policy’s price fully reflects the value of those items for replacement against any threat of loss.

Misconception 2: Homeowners Insurance Covers The Full Value Of Your Jewelry

The risk of policy costs rising is only part of the issue with relying on residential insurance to cover your precious assets, since homeowners and renters insurance also only provides capped coverage for individual items.

Many insurance policies carry a per-item cap of $2,000 or less, while most only guarantee coverage of 50% per instance of loss up to only $5,000.

In concert with fully apparasing your precious possessions, insurance policies from BriteCo account for the full value of your jewelry and watches, offering replacement value of equal or greater value, up to 125%, of each individual item up to $50,000 and $150,000 per customer.

Misconception 3: Your Carrier Will Allow You To Choose Your Jeweler If You File A Claim

In addition to the lack of coverage, residential insurance policies generally limit the ability of policyholders to seek repairs or replacements from their preferred jewelers and suppliers. Like health or dental, insurance firms generally prefer establishing a network of preferred affiliates with which to work, lowering costs but limiting choices for policyholders.

While it may not matter which roofing or plumbing company you may need for home repairs, repairing or replacing jewelry is often a very particular and intimate task. Purchasing a specialized jewelry insurance policy generally guarantees you will be able to work with your preferred jeweler in fixing or replacing a damaged or stolen item.

Misconception 4: Residential Insurance Remains Up-to-date On The Value Of Your Insured Jewelry

Perhaps the most critical aspect of jewelry insurance in this time of ascending asset prices is attaining a policy value that reflects the ever-rising value of precious metals and gemstones. Given the broad scope of homeowners and renters insurance, coverage for precious items containing gold, silver or diamonds are generally based on one-time estimates and don’t take into account the spot market value of each items’ constituent materials.

In contrast, BriteCo’s specialized jewelry insurance includes automatic annual updates to insured values based on hundreds of thousands of data points for policyholders. This not only ensures the value of your precious assets reflect their current market value, but also allows for an up-to-date accounting of each individual jewelry piece.

Misconception 5: A Homeowners Policy Protects Your Jewelry From All Instances Of Loss

Finally, and perhaps most critically, are the many lacunas in jewelry coverage that come with residential insurance policies. Even the partial coverage these plans provide for damage often does not account for the wide variety of claims a policyholder may make, including some of the most common claim types, like water damage or unexplained loss either at home or during travel.

Unlike homeowners or renters insurance, specialized jewelry insurance provides much more comprehensive coverage.. BriteCo in particular offers policyholders worldwide coverage against loss, damage, theft, or mysterious disappearance, all with zero deductible.

Appraising Your Coverage

As the value of hard assets continues to serve as a significant store of wealth, investors with precious assets from necklaces and watches to coins and other valuables should evaluate whether their possessions are fully appreciated. It may surprise how much these items are worth in the current market, and how little they are accounted for under the umbrella of their current insurance policy.
Visit www.brite.co to learn more about the ways in which specialized jewelry insurance can protect your valuables.

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