The Importance of Insuring Your Jewelry
September 20th, 2019
When you purchase something expensive such as a car or a home, it's only natural to next think about insurance. However, don't overlook the importance of also insuring your jewelry. If this thought hasn't crossed your mind before, our team at Albert's Diamond Jewelers is happy to walk you through the process and answer your questions along the way.
The Basics of Jewelry Insurance
You may struggle when determining what jewelry should be insured and what jewelry can go unprotected. A good rule of thumb is as follows: if a particular piece of jewelry from your collection got stolen, would you be able to afford the replacement? If the answer is no, you'll want to get the jewelry insured. After all, it's always better to be safe than sorry, especially if there is both sentimental and monetary value to the piece.
You may think that it will be expensive to insure your jewelry, but it is typically only 1-3 percent of the value of the item(s) insured. In the big picture, this is a small price to pay for peace of mind. From family heirlooms to custom-made pieces to diamond jewelry in Chicago, you'll want to be prepared for the worst.
How Jewelry Insurance Works
Jewelry insurance operates on the same premise as other types of insurance. For example, say you have a vintage ring that you believe is worth $10,000. Your first step is to get the ring appraised to see how much it is truly worth. The appraisal process is ideal for helping both yourself and the insurer feel more comfortable with the current value of the item, and it helps establish a baseline for the item's condition.
Just like any other type of insurance, the larger your deductible is, the lower your premium is. However, this also means that you'll bear more of the cost if you ever need to make a claim.
What Types of Jewelry Should Be Insured’
To put it simply, any jewelry that has value to you should be insured. Even if the item does not hold a ton of monetary value, but it holds sentimental value, you'll want to get it insured. Think of it this way: if the item disappeared tomorrow, would you be able to replace it? If the answer is no, you'll want to insure the jewelry.
Your Renters or Homeowners Insurance Isn't Enough
Many customers visit us with their diamond jewelry in Chicago under the impression that their precious jewels are already covered under renters or homeowners insurance. This is not the case, and could end up costing you in the long-run! The caps on these types of policies isn't high enough to cover jewelry that is worth more than a few thousand dollars. If you have items that are more expensive than this, you'll want to get separate insurance that covers your jewelry as well.
It's Worth the Investment
Know that jewelry insurance is designed to cover a wide variety of instances. From chipped stones to mysterious disappearances, you'll have the peace of mind that your item will be covered in the case of the unthinkable. Some policies may even allow you to have the lost or damaged piece recreated by a custom designer or repaired altogether. You'll want to explore your options and ask any underlying questions so that you fully understand what is covered vs. what is not covered.
Have Jewelry Appraised Regularly
The market is constantly changing, so what your diamond jewelry in Chicago was once worth may not hold true in today's market. In return, how much your jewelry is worth will also have an impact on how it is insured. Our team at Albert's Diamond Jewelers recommends having your jewelry appraised every 3-5 years. This is important for two reasons:
You need to make sure that the jewelry's prices reflect the current market. The gold and diamond market is constantly changing, so getting your jewelry appraised will keep your insurance policy up to date. A lot can change over the years!
In the rare case that prices happen to go down, you'll want to make sure that you are not paying a premium for a piece that has ultimately decreased in value.
How the Albert's Team Can Help
Our team at Albert's Diamond Jewelers understands both the sentimental and monetary value behind every piece of jewelry that you own. We will work with you to determine a plan that provides you with peace of mind. In fact, we offer free replacement quotes to all insurance adjusters and agents, most of the time providing the quote in under 24 hours. Don't hesitate to contact us today to get started.