Don’t Lose Twice!
Make Sure You Have The Right Jewelry Insurance!
Fine jewelry and luxury watches are usually among our most cherished and valuable possessions. When an item has great sentimental value, its loss, theft, or damage can be devastating. If you discover that you don't have the proper jewelry insurance, you will have lost twice! Here are 8 things you need to know about insuring your jewelry and luxury watches.
Doesn't My Homeowner Policy Cover My Jewelry?
Almost all homeowner insurance policies are inadequate for fine jewelry and luxury watches that are valued at over $1000. Check to see exactly what your current homeowner's insurance policy provides.
Some policies only cover stolen items. They will not cover the replacement costs of misplaced items, damages such as chipped gemstones, or the replacement of a ring dropped down your sink! These items need a separate policy.
To make sure that you are fully covered for every situation and for the full value of your jewelry and timepieces, choose a "stand alone" policy.
When Should I Buy My Insurance?
As soon as you buy your new watch or jewelry piece, you need to get it insured. Homes get robbed around gift-giving holidays, presents get lost in shipping, and shopping bags get misplaced. Contact your insurance company right away so your new purchase is protected.
What About Giving or Receiving Gifts?
Both the giver and the receiver need to insure expensive gifts. When you have purchased the gift, you need to insure it . Once you have given your gift, your insurance will no longer cover any loss. You need to cancel your coverage.
Recommend that the lucky gift receiver take out insurance right away on your present. If you are planning on presenting an engagement ring, put both your names on the policy.
Is My Sales Receipt An Appraisal?
No! Your sales receipt only shows what you paid. Whether you paid a higher-than-average price or got a great deal, your insurance replacement will be based on the current retail market cost to restore or replace your item.
Keep in mind that inflating the stated value of items to be insured is both unethical and fraudulent. While you can expect to pay higher premiums, if you ever need to make a claim, you will be compensated at the true market value. And, that is only IF the claim is approved! The process will be decidedly difficult.
Who Should Do The Appraisal?
For accurate insurance coverage, you need a Certified Appraisal by a qualified appraisal professional. Your local jewelry is often not qualified to perform appraisals that will be accepted by insurance companies.
Accredited appraisers have received specialized training from an accredited appraisal organization. These include the National Association of Jewelry Appraisers, the Gemological Institute of America or the International Society of Appraisers.
What Information Should My Appraisal Have?
Your appraisal will be an official document that states all the necessary facts to replace your loss with a matching item or reimburse you for its current retail value. It will include the taxes you paid and the cost of the appraisal fees.
Once the assessment has been completed, you'll receive an appraisal report, a photo of the jewelry or watch, and a thorough description. Give this report package to your insurance company.
Take your own photographs and copies of the appraisal. You might also want to save any brochures about your piece provided by the brand manufacturer. For custom pieces, the value of the labor, design, and materials will be included to evaluate the value of the item.
Do I Ever Need To Reappraise My Items?
Insurance replacement claims are based on current retail prices. As market process change, you need to make certain that you are carrying enough insurance or not over insuring your items. Some insurance companies recommend a reappraisal every eighteen months.
Reappraisals are especially recommended if your insured jewelry or watch items suddenly become scarce, more popular, or become less in demand. When the value of the materials used to make an item undergoes great changes, such as the costs of precious or gemstones, it is crucial to have a current appraisal.
Why Are My Premiums So High?
If you reside in a major city, you can expect to pay higher premiums than your country cousins due to the higher risk of theft. Keeping your jewels in a safe or a safety deposit box will reduce your premiums with some insurers. The amount of your policy deductible will also affect your premiums. Make sure your policy always reflects your current address.
Knowing The Facts
While the loss or damage of your fine jewelry or special watches is, at best, an unpleasant experience, make sure you don’t lose twice! You could lose once with the loss or damage of your piece and again when you find that you have inadequate insurance coverage.
While we hope that you will never have the occasion to need it, make certain that your special jewelry, vintage timepieces, and luxury brand watches have the right insurance before you do!