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Summer 2018  Volume 14, Number 2        
 

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Are Your Jewelry Items Insured for Their True Value?

Did you think your jewelry was covered under your homeowner's policy?

To some extent, it is. But wait. Did you know that while the contents limits on your homeowner's policy may be quite high, there is typically a very low sublimit for jewelry? There's usually only $1,500 of coverage on jewelry, watches, and precious and semiprecious stones. If your jewelry is worth more than the sublimit in your homeowner's policy, you should consider purchasing specific insurance to cover it.

Many people overlook the need to properly insure their expensive jewelry, believing their homeowner’s policy automatically covers it. While homeowner’s policies do cover jewelry, this insurance usually is subject to a much lower limit than the overall contents coverage. This is called a “sublimit,” and a typical policy has a sublimit of $1,500 for loss of jewelry, watches, and precious and semiprecious stones. If your jewelry is worth more than the sublimit in your homeowner’s policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.

  • Make an appointment with your agent to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.
  • Consider obtaining an appraisal from a reputable jeweler if you have not had your high-valued jewelry appraised within the last three years. Insurance companies often require an appraisal from a graduate of the Gemological Institute of America (GIA). The Institute's G.G., G.J., or A.J.P. designations at the end of an individual's name indicate that the jeweler has obtained a sound education in all aspects of the jeweler's profession and been credentialed by a respected nonprofit organization.
  • Make sure the appraisal has a description of the diamond’s four C’s — (a) carat, (b) cut, (c) clarity, and (d) color. The “carat” refers to the weight of the diamond. The quality of the "cut" of the diamond affects the way light enters the stone and is reflected back. "Cut" also refers to the diamond’s shape, such as round or pear-shaped. The "clarity" refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond. The "color" denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.
  • Purchase specific jewelery coverage that can be added via an endorsement onto your homeowner's policy. This endorsement (also available as a separate policy) provides much broader coverage than the limited protection found on the unendorsed homeowners policy.
  • Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.
  • Review your jewelry protection with your agent at least every two years or whenever you sell or purchase high-value jewelry.

[Our thanks to IRMI for background on this article.]

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In this issue:

This Just In...

9 Tips for Hiring a Home Repair Contractor

Are Your Jewelry Items Insured for Their True Value?

How to Avoid Becoming a Fake Accident Victim

How to Protect Your Home-Based Business

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2015 The Insurance 411. Tel. 877-762-7877. www.theinsurance411.com