From flower to candy to jewelry, Valentine’s Day has become a major gift-giving holiday. With over $18 billion being spent each year, over $4.4 billion is spent on jewelry alone. If you’re among the many buying your sweetheart something sparkly this year (Valentine's Day or not), do you know how to protect your purchase? Insuring your jewelry with jewelry insurance can help make sure the gift lasts a lifetime.
Insuring Your Special Jewelry Gift With Jewelry Insurance
Whether you’re planning the perfect proposal or celebrating many years together, if your gift involves jewelry you may be courting risk. Though homeowners, renters and other personal insurance policies offer coverage for your belongings, including jewelry, the limits on these items are often much lower than the value of your precious jewelry. With the potential for theft, loss, and damage, your carefully planned gift could quickly become an enormous loss if you don’t take additional steps to insure your items.
Warranties are Not Insurance
When buying your jewelry gift, the jeweler may offer a warranty on it. While this can be valuable coverage if your item is damaged, the coverage a warranty provides is often limited and subject to specific conditions. Before purchasing an extended warranty, be sure to understand what is – and is not – covered and compare it to your homeowners policy or other insurance policies you may purchase for the item to be sure you are getting the coverage you need.
One option to insure valuable items, such as jewelry, is to add a rider or “floater” to your homeowners or renters policy. Because these policies typically top out at $1000-$2000 worth of coverage for any one item, items exceeding this value, such as an engagement ring, need a rider to be fully covered. This specific coverage covers only the named item at the value listed, but often provides quite broad coverage on top of your standard homeowners insurance, such as accidental loss. Though your premiums will go up, adding an insurance rider is often a good way to fully insure an individual item. However, if you do not live at the same address as the person receiving the gift, your coverage will not extend to cover the item in their home. In this case, the recipient will need to purchase their own coverage.
Consider Jewelry Insurance
Another option to insurance an expensive gift is to purchase a separate jewelry insurance policy. Much like other policies, it covers specified losses up to the agreed upon limit. Jewelry insurance is often quite flexible, allowing you to choose a premium and deductible that works for your budget while still covering your item. Unlike adding a rider to another policy, a jewelry policy can cover a broader range of situations, including flood loss, which may otherwise be excluded. Additionally, jewelry insurance can apply to gifts, even if you do not live at the same address. A claim against your jewelry coverage also will not affect your homeowners premiums.
Before You Insure
When buying insurance for a new piece of jewelry, it’s important to know the appraised value, rather than the price you paid for it. This will ensure that you are getting enough coverage to fully replace the item if it is lost or stolen. Often your jeweler can offer this service or recommend an independent appraiser.
The type of insurance that’s right for you is going to depend on your situation, other insurance policies you already have, and the value of the item. Your insurance agent can help determine how best to insurance your jewelry gift to make sure your sweetheart has nothing to worry about while enjoying their special gift.