What You Should Know About Insuring Jewelry and Watches
January 14, 2020
Have you ever been in a situation where you misplaced an expensive or sentimental piece of jewelry? Many homeowners and renters mistakenly believe that they are covered for these types of losses under their home insurance policies, however depending on your policy, you may find out the hard way that you are not sufficiently covered for big ticket items, such as engagement rings and luxury watches. To avoid potentially devastating losses, take your pieces in for jewelry appraisal and check with your insurer to verify you are covered for their full replacement value.
Many of us can probably relate to the gut wrenching feeling of not being able to find your engagement ring or hoping you left that expensive watch at home and didn’t forget it at the hotel. Most homeowners’ or renters’ insurance policies will cover up to a specified amount for lost or stolen jewelry, typically between $3,000 and $6,000, and there is often a $4,000 reimbursement limit on any one insurable piece. Considering that the price of the average engagement ring jewelry appraisal is just over $4,000, and collectable watches can cost more than a car, you may not have enough coverage. For this reason, most insurance companies offer the option to include additional insurance to cover items such as jewelry and luxury watches.
If you know, or suspect, that a jewelry item you own has a value above what would be covered under a traditional home or renters’ insurance policy the first step you should take is to bring the items in for jewelry appraisal. Jewelry appraisal services include photos, a detailed description of your items, and an estimate of their current value. Once you have the appraisal you can add these to your home inventory, which is a list of your possessions and their estimated value, used for insurance purposes. A jewelry appraisal is used as the basis for the insurable value, so make sure to use a reputable appraiser and keep copies of all documentation somewhere safe.
If you have taken out additional insurance for jewelry and other luxury items, it is important that you keep your policy up to date. If new valuables are purchased, they will have to be added to your policy. Make sure to keep receipts and to take the item in for jewelry appraisal,as the replacement value may exceed the purchase price. It is also important to periodically have items such as high-quality gems and luxury watches taken in for a new jewelry appraisal,as they may have increased in value over time.