People spend an enormous amount of money on jewelry annually in the US and you should make sure that you insure jewelry so that you recover the full value of the piece. If your diamond engagement ring is stolen or one of a pair of expensive earrings disappears you may, like most people, think your homeowners policy will fully protect you from the theft, damage or disappearance of valuable jewelry items.
Most insurers may not even be aware that you are intending to report a loss on an expensive pendant using a basic homeowners policy that they know does not provide coverage that is enough to fully replace these items. After all, if you don’t disclose this fact how are they supposed to know? This means you’re going to discover far too late that your jewelry isn’t adequately covered at the time that you have to make a claim.
Protecting your valuables at home or away
Insurance helps after the fact, but what are you doing to keep these valuables secure? We suggest that you don’t keep your most valuable pieces in your bedroom since it’s the first place a burglar is likely to look. One way to prevent theft is to install a home safe (with the appropriate jewelry rating) somewhere in the home, or keep valuable items in a bank vault or safe deposit box.
When traveling, always keep expensive items with you at all times, or use a convenient hotel safe, and never keep jewelry in your luggage or wear valuables to the beach or left in an unattended purse at poolside.
In the event of a total covered loss, there are policies that allow you to choose whether to repair or replace the item at the jeweler of your choice or keep the cash settlement. If you lose one item of an itemized pair or set, you can often receive the replacement cost of the entire pair or set as your settlement (up to your coverage limits), but you must then provide your insurer with the remaining piece(s) or you can choose to keep the remaining piece(s) and receive the replacement cost for the lost item only. Always insure jewelry with a separate policy that provides full protection. You’ll be glad you did.