Whether you own one piece of fine jewelry or a collection of valuable family heirlooms, financial advisers recommend carrying insurance coverage for treasured pieces. Imagine losing an expensive ring, or having your grandfather’s diamond cuff links stolen, only to find that the homeowners insurance policy you thought would reimburse you for the loss actually comes with inadequate limits, exclusions, and a high deductible. Fortunately, jewelry insurance in New Jersey provides comprehensive coverage in the event of almost any loss, damage, theft, or disappearance — at affordable rates, without a deductible.
Choosing between a Stand-alone Jewelry Policy and a Jewelry Rider
Even though your existing homeowners or renters insurance is unlikely to cover the full replacement or repair for expensive jewelry, one option for increasing that coverage is a Scheduled Personal Property endorsement on your current policy, also known as a jewelry rider or "floater" policy.
Jewelry riders include detailed information about specific pieces of jewelry and will ask you to provide a recent appraisal or receipt and photograph(s) of the item. The annual premium for a jewelry rider in New Jersey depends on your insurance carrier, but typically ranges between 1% to 2% of the item’s value. So, expect to pay $60 to $120 each year for a $6,000 engagement ring.
If that sounds like a lot to pay for insurance, remember that your primary policy likely places limits on how much it will reimburse you for a single item or for all items lost in one event (blanket coverage limit). Limits vary, but are usually in the $1,000 to $1,500 range for a single item or $2,500 to $10,000 for blanket coverage. Also consider the policy’s deductible and any exclusions to coverage. Generally, your homeowners insurance will not reimburse you for accidental damage or loss, where a jewelry rider or separate insurance will.
For more extensive jewelry collections and custom pieces, a stand-alone jewelry policy may be a more appropriate option. Stand-alone jewelry policies will cost more than a rider, but they provide greater leeway in choosing how your jewelry is replaced. With a stand-alone jewelry insurance policy, the replacement provided is more likely to be as close to an exact duplicate of your unique original as possible.
Replacement Cost of Your Jewelry
To understand if you need a jewelry rider or stand-alone jewelry insurance policy, first take an inventory of your jewelry collection. Document the real value of each item and obtain current professional appraisals for your more expensive pieces. Bonus Tip: Take photographs and keep a copy of the gathered documentation in a safe place to help if you ever need to give a police report or fill out a claim.
Next, compare the dollar value of your jewelry with the coverage limits on your homeowners or renters insurance policy. Remember to account for your deductible to determine if you would be satisfied with the policy’s coverage amount if your jewelry was stolen or damaged. Are you comfortable risking total loss with no reimbursement for an excluded scenario? If not, get in touch with an independent insurance agent to discuss adding a jewelry endorsement or purchasing an individual jewelry insurance policy.
Protecting Your Jewelry from Loss, Theft, and Damage
Aside from insuring your fine jewelry, you can take steps to protect each piece from loss, theft, and damage. Here are recommendations from New Jersey’s independent insurance agents:
Ten Ways to Protect Your Jewelry
- Lock it in a safe place — a bank’s safe-deposit box or locked firebox hidden in the home
- Travel light — only bring jewelry you intend to wear
- Don’t transport jewelry in checked luggage
- Photograph expensive jewelry and keep receipts
- Inspect settings before wearing — have loose settings repaired
- Get high-value jewelry professionally inspected regularly
- Purchase adequate jewelry insurance
- Obtain a new appraisal every five years
- Avoid wearing valuable jewelry while playing sports, cleaning, or gardening
- Limit photos of fine jewelry in social media posts
There are many factors that go into determining the policy that’s right for you. because choosing the right coverage is critical for protecting your jewelry. Speak with an independent insurance agent in your neighborhood to find out how you can get the right coverage at the right price. They’ll shop multiple carriers and give you options for your individual needs.