If you’ve been considering jewelry insurance then you probably already know that jewelry insurance covers loss, theft, and damage. And with the top jewelry insurance companies, it might even cover more than that.
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When Is Your Jewelry Not Covered By Your Jewelry Insurance Policy?
Your jewelry insurance policy will list several circumstances, risks, and hazards that are not covered by the policy. This means that if damage or loss of your jewelry is caused by any of these circumstances or risks, you will not be compensated.
Not Covered Under Jewelry Insurance:
- Damage from vermin, rodents, or insects
- Intentional damage or loss of jewelry
- Voluntarily parting with your jewelry (you gave it away, pawned it, used it in payment)
- Loss or damage resulting from war or military action
- Civil authority confiscation (your jewelry is seized as evidence)
- Damage or loss resulting from nuclear hazards
- Wear and tear
- Pre-existing damage
What Does Homeowners Insurance of Jewelry Not Cover?
If you opt to include your fine jewelry in your homeowners or renters insurance you’ll find that it comes with an average cap on payouts of $1000-$2000 per item. That means that if your $5000 engagement ring is stolen from your home you’ll get only $1000-$2000 back from your homeowners insurance. Homeowners insurance also comes with high deductibles. This means you’ll have to pay part of the replacement value for lost or stolen jewelry. If you purchase jewelry for your loved one, it may not be covered under your homeowners policy as it is intended for someone other than the home owners. If you want to get the insurance that will compensate you correctly if you make a claim, then pay the extra cost to insure jewelry with a stand-alone policy.
Added Extras That Might or Might Not Be Covered in Your Jewelry Insurance Policy
If you choose a reputable jewelry insurance company that specializes in jewelry insurance, your policy might have some added perks and extra coverage such as:
- Coverage for up to 125% of jewelry appraised value
- No deductible
- Preventative repairs: prong-retipping; fixing broken, worn, or bent prongs to prevent the gemstones from falling out; clasp replacement; replacing or fixing broken or loose earring posts; restringing pearl necklaces when the string is stretched or broken and could cause pearls to be released and lost, and stone tightening.
- Mysterious disappearance, when the ring is missing but you are unsure whether it is lost or stolen. When there is no logical explanation for the jewelry’s disappearance. Not all policies cover mysterious disappearances.
- Maintenance and jewelry repairs, including fixing broken, worn or bent prongs on a ring setting; replacing chipped or broken stones, and tightening the stone setting if it becomes loose over time.
- Annual reevaluation of your jewelry to make sure that the original appraisal value has not changed due to the changing value of precious metals and gems.
Your Jewelry Is Not Covered If…
If…you don’t get a jewelry insurance policy it won’t be covered and you won’t get any compensation – take out a stand-alone jewelry insurance policy as soon as you purchase your jewelry. Don’t wait.
If… you don’t get your jewelry properly appraised by a professional, approved appraiser and you have no evidence of the value of the jewelry, your policy might not cover the true value of the jewelry. Your policy will compensate you for the value of the jewelry, and if it is incorrectly appraised, your compensation may not cover replacement.
If…you are negligent and lose, or damage the jewelry in any of the ways listed above that are not covered by jewelry insurance.
If…you have lied on your jewelry insurance application. For example, if you have said that a piece of jewelry is always kept in a safe, and then it is stolen during a mugging, it won’t be covered. Or if you have lied about the appraisal or any aspect of the jewelry’s worth, the policy will be null and void.
If…you have taken out an insurance policy with an unreliable insurance provider, you might not ever see your money again or be compensated for your lost jewelry.
How To Make Sure Your Jewelry Is Fully Covered
Choose a reliable, professional insurance provider that specializes in jewelry and watch insurance. Get your jewelry appraised by a verified appraiser approved by your insurance company. Make sure you are completely honest when filling in the application form. Read the small print on your jewelry insurance policy and insist that all the essential elements are covered.
