In fact, according to a variety of studies, the price of an engagement ring alone is between $5680 and $7829 on average. Of course, your jewelry could be worth a lot more, particularly if it’s designer jewelry in Indiana.
Despite all this, jewelry is one of the easiest things for you to lose. It’s not at all uncommon for a precious piece of jewelry to fall down a drain or garbage disposal, making it impossible to recover. Not to mention, because jewelry is so expensive and easy to transport, it’s high on the list of targets for criminals. All these facts add up to the simple idea that jewelry insurance is an absolute must for anyone who owns a piece or pieces of jewelry that are worth more than a couple thousand dollars.
In this post, we’ll lay out exactly why it is that jewelry insurance is essential to have.
Limited Coverage from Existing Policies
If you’ve just purchased designer jewelry in Indiana, you may be wondering why you should get jewelry insurance when your homeowner’s or renter’s insurance policy already covers lost jewelry. The reason is simple: homeowner’s and renter’s insurance each cover a very limited portion of your jewelry. In addition to limiting the coverage amount to a couple thousand dollars, homeowner’s and renter’s insurance tend to have less desirable terms than a dedicated jewelry insurance policy.
For example, many homeowners and renters policies will not cover your jewelry in certain circumstances like if your ring is damaged. A jewelry insurance policy, on the other hand, can be written so that it has none of these limitations. For example, a jewelry insurance policy can cover repairs, theft, or loss up to the amount that you specify.
Jewelry Insurance is a Smart, Defensive Investment
In the world of finance, there is what’s known as offensive and defensive investing. When you pursue an offensive investment strategy, you invest in assets that you believe will earn money over time. A defensive investment strategy, on the other hand, protects the assets that you’ve already invested in.
Bringing it back to jewelry, when you buy designer jewelry in Indiana, for example, you spend a significant amount of money. When you purchase a jewelry insurance policy you are providing protection to the sum of money that you spent on the designer jewelry in Indiana. In this way, you ‘defend’ your money from future events such as loss, theft, or damage.
On principle, this is the same idea behind homeowners or renters insurance and car insurance. Like with an auto policy and homeowners or renters insurance, jewelry insurance protects you in the event that something happens to your most expensive possessions.
Jewelry Insurance Provides Peace of Mind
Imagine walking around with five thousand dollars in cash hanging out of your pocket. In many ways, that’s exactly what you are doing when you walk around with designer jewelry in Indiana. And even if you feel good about your neighborhood and are sure no one would steal it, the more you wear your jewelry, the more likely it is to get lost or damaged. But you shouldn’t be afraid to wear your jewelry. After all, the reason you purchased it was to put on a brilliant display, and even the most brilliant display can’t illuminate the room if it’s always stuffed in a drawer.
Fortunately, with jewelry insurance, you can enjoy your jewelry without worrying about the consequences of losing it or damaging it. In that way, jewelry insurance makes your designer jewelry even more fun to wear.
Jewelry insurance policies give you ultimate peace of mind, but only if you make sure you read and understand the details of the policy. That means you should read the fine print. As you do, look out for the coverage, replacement, assessment of value, and documentation requirement sections.
The coverage section will dictate what exactly is covered so you should make sure you understand any contingency that isn’t covered. The section on replacement will spell out how your insurance company plans to replace your ring which could be with a check or a new ring. Perhaps the most important section is the value assessment which lays out how your insurer plans to value the jewelry. This is important because it dictates what compensation you’ll be entitled to. Finally, the documentation section will tell you what paperwork is required if you need to file a claim.
When it comes to designer jewelry in Indiana, there might be no bigger no-brainer than the need to purchase jewelry insurance. For a low monthly premium you can protect one of your most important and sentimental investments.