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How Does Jewelry Insurance Work & Do I Need It?

Posted on September 11 2020

jewelry insurance

After the excitement of buying a brand new chain or gemstone encrusted ring wears off, you might find yourself worrying about how to keep it safe. You just dropped a bunch of dough on a dope new 14K gold chain, so what if it gets stolen? Or broken? Or, even worse, lost? It can be a crushing disappointment when something happens to an item we consider special, but, thanks to jewelry insurance, you can protect your favorite pieces from all three of these possible scenarios.

What Is Jewelry Insurance?

Jewelry insurance is pretty much exactly what the name sounds like—insurance for your jewelry. However, you can’t just go around getting every little piece of jewelry insured. It needs to be something of value, such as real gold jewelry, heirloom brooches, or other accessories and wedding rings (one of the top pieces of jewelry that gets insured).

Most insurance policies typically charge $1 to $2 per $100 value of your piece, and they cover scenarios like jewelry being stolen or damaged. Some policies will even cover the price of your piece if it gets lost, so you don’t have to worry so much. Before signing a policy, however, be sure to carefully review the agreement and make sure that any promises made to you verbally are reflected in the written document.

Why Should You Get It?

  • Affordable Pricing

As mentioned, the average price of jewelry insurance is about $1 to $2 per $100 of value, so, if you were looking to insure a $10,000 real gold necklace with gemstones, your yearly cost would be somewhere between $100 to $200. When compared with the total value of the piece, this pricing is pretty reasonable, especially since it offers you the peace of mind that your jewelry will be safe no matter what may happen in the future.

People who are interested in saving their most precious jewelry to pass down to their children or grandchildren will definitely want to invest in insurance to protect the pieces for posterity. If $100 to $200 still sounds like a lot to you, think of it this way: That’s just $8 to $16 per month—probably less than what you pay for your streaming subscriptions.

girl opens safe door

  • Protects Expensive Jewelry Pieces

Of course, the entire purpose of jewelry insurance is to protect the value of your insured items. When you finally decide to splurge on the Rolex or a unique 14K gold chain with an iced-out pendant, you want to be able to rest assured that your jewelry will be safe. That means safe from people who may want to steal your pieces and safe from yourself—we’ve all lost or broken a prized possession one or twice before.

Sometimes, if your jewelry does need to be replaced, you can try to have a jeweler replicate the original, but, typically, you’ll receive the amount of money that the jewelry was originally valued at by an appraiser.

  • Goes Beyond Your Homeowner’s or Renter’s Insurance

Some people are under the impression that their homeowner’s or renter’s insurance will cover valuable items like jewelry should something happen. Unfortunately, this isn’t entirely true. Your homeowner’s or renter’s insurance will cover expensive items if they are damaged or stolen, but only up to a certain amount. Typically, these types of policies will not cover more than $1,000 to $15,000 worth of personal items.

If you were to lose a couple of expensive TVs, several computers, and thousands of dollars-worth of jewelry, it’s unlikely your policy would cover everything. Some homeowner’s and renter’s insurance policies actually specifically exclude jewelry coverage, which is why jewelry insurance is so appealing to people with a large collection.

What You Need to Get Jewelry Insurance

  • Original Receipt: If the original receipt is available, it would be useful to share with the insurance company, as it will validate the price which you paid and verify that you were, in fact, the original buyer. If you buy from a third-party or person-to-person, ask for a receipt to be drawn up for your records.
  • Certificates of Authenticity: Not only jewelry will need this to be insured. Particular types of gemstones, including diamonds, are supposed to come with certificates of authenticity to guarantee that the quality is high and the gemstones are real.
  • An appraisal: This is the most important item you’ll need to secure jewelry insurance. A jewelry appraisal will examine your pieces and give a realistic monetary value. Be sure to do your research beforehand and go to a reputable jeweler who has been approved by the National Association of Jewelry Appraisers.

gemstone appraisal

Getting your favorite pieces insured is the right way to guarantee your dopest real gold jewelry from Frost NYC will stay with you forever. Our selection of high-quality necklaces, bracelets, rings, and watches have been carefully crafted to give you the most swag in the room.

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