Financial Advice: How, And When, To Insure Jewelry

learn how and when to insure your jewelry

You don't have to be rich and famous to have jewelry worth insuring.Whether it's an engagement ring, a diamond necklace or an inherited watch, acquiring jewelry usually requires a call to an insurance agent. While sentimental value cannot be insured, appraised value can be, and insurance can provide protection and piece of mind to owners of expensive jewelry.

Homeowners and renters may already have some protection for their jewels, if they have purchased a homeowner's or renter's insurance policy.These policies usually cover jewelry, but typically have a limit of $1,000 to $2,000 per item.The policy may also limit the perils the jewelry is covered for.For example, the jewelry would probably be covered (up to the policy limits) if it were destroyed in a fire, but not if it were simply lost.

For jewelry owners with more expensive pieces, it is possible to fully insure them.In most cases, insurance companies offer "floater" or endorsement policies.These policies are purchased as a supplement to the homeowner's or renter's insurance policy and provide extra coverage for specific items.

The first step is to get the item of jewelry appraised.Insurance companies will generally insure an item of jewelry at the appraised value.This will also help to determine if the jewelry is within the policy limits, or if a "floater" policy is needed.

Next, contact an insurance agent to get a quote.The price of "floater" policies vary depending on how expensive the item is, where it will be kept and the company you choose to insure it.Typically, there is no deductible on a "floater" policy.That means that if the item were destroyed or lost, you would not have to pay anything to replace it.

Also, find out if the policy you get will replace the item or will cash it out.Some policies state that you must replace the item within a certain time period.Others will process your claim and reimburse you the cash value of the jewelry.It is also important to find out if the policy will cover the jewelry worldwide.Different companies have different restrictions and requirements.

The appraisal and receipt should be added to a home inventory of your belongings and kept outside of the home, in a safety deposit box or at a family member's.These items would be a valuable tool in having an insurance claim settled quickly and accurately.

Protect valuable jewelry by storing it in a secure location.Some companies even offer discounts for storing jewels in a fireproof safe or safety deposit box.If the item is extremely expensive and kept in a safety deposit box, insurance companies will usually arrange extra coverage if it is going to be worn out for a night.

It is important to keep the insurance policy and "floater" up to date.Generally, the policy will have to be renewed annually and the insurance company may require appraisals to be updated occasionally to ensure that the item has the proper amount of coverage.

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