Looking at a new piece of jewelry? Make sure to look at your insurance, too

January 9, 2019

Whether it’s a gift from someone special or a gift to yourself, a new piece of jewelry can bring some sparkle to your life.

However, many people who find themselves victimized by burglars—or worse, a fire or some other disaster—also find out too late that they didn’t have enough insurance to replace their jewelry.

Here’s why: Homeowners policies typically only cover valuable items such as jewelry and watches up to a specific amount. For example, if your limit is $5,000, but you have a $15,000 diamond ring, you’d be on the hook for an extra $10,000 in order to replace it.

1. Do you need more coverage? Look at your policy language, or ask your agent to explain your coverage.
2. What kind of coverage should you get? Consider if items are covered no matter where they are.
3. Do you need an appraisal? In some instances, an insurance company will require an appraisal.
4. Do you have items with mainly sentimental value? Talk to your agent about whether insurance is necessary.
5. Do you have the ability to increase your deductible? A higher deductible can lower your premium.
6. Do you have pictures? Photos help jewelers recreate lost or stolen pieces.

Whatever you choose to do, remember that you play an important role in keeping your jewelry protected: be sure to store it securely.