Is Jewelry Insurance Right for You?

Wedding season is right around the corner and if you’re the proud owner of sparkly, new jewelry, you might be wondering whether you should purchase jewelry insurance.

“Whether or not someone needs to purchase special insurance for their jewelry depends on the value of their jewelry,” said Licensed Insurance Agent Jill Stewart. “Most homeowner policies have a limit within their personal property limit on certain articles. Jewelry is ALWAYS included in the ‘special’ limit. I have seen that limit as low as $1,500.”

Associate in Insurance Services, Associate in Personal Insurance, Associate in Underwriting and Associate in Insurance Maria Moser said that without jewelry insurance, any losses would be subject to your deductible. 

“Homeowners policies also have limits for jewelry coverage (ex: $1500 per item and $2500 aggregate) while many people have single items valued higher than this,” she said. “Many companies also offer endorsements or options to increase this limit however a personal articles policy provides better coverage, in my opinion, and are often very reasonably priced.”

Homeowners policies, she said, cover items without a deductible. Additionally, they often offer covered causes of loss, such as mysterious disappearance.

Causes of loss covered by a homeowners policy include accidental, direct physical loss or damage, theft, and fire, etc., she said, but they don’t typically cover things such as the loss of a gemstone from jewelry.

“In order to be covered under theft, [the item] would need to be taken from a known location when it is probable that theft has occurred (For example, a break-in.).”

“If the jewelry was lost or stolen, you would have to pay your full homeowners deductible before you received anything on the jewelry,” added Stewart. “So, do you need it? Not if the total value of your jewelry is below the special limits and/OR lower than your deductible. However, if the value is above that limit, then yes!”

According to Stewart, jewelry insurance is on either an Inland Marine policy, which is separate from your homeowners, or on a homeowners schedule.

“Both types of these policies give you a lower deductible for your items,” she said.

While Moser doesn’t recommend a using a specific insurance company for your jewelry, Stewart likes SafeCo and State Auto.

“Both of them allow blanket coverage, which means you can just say ‘I want $25,000 in jewelry,’ and that’s what you get, instead of paying for each individual item,” she said.

“Unless the insured chooses blanket coverage, the price you pay depends on the item in question. For example, I had a $3,000 flute on a schedule once. It cost me $8 a year. However, I have seen rings for as high as $250 a year and as low as $14 a year. It depends on everything from the metal it’s made of, to the metal, size, and quality of the gem stones.”

Finally, she adds, regardless of what insurance company you use, she recommends getting your pieces appraised first.

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