Jewelry insurance covers the replacement costs of lost, stolen, or destroyed jewelry, but policies vary and often require appraisals. Homeowners insurance may not cover jewelry, and policies should be read carefully to determine coverage. Some companies offer gem insurance for loose stones or specific types of jewelry.
Jewelry insurance is insurance designed to cover the replacement costs of jewelry that is lost, stolen or destroyed. Like other types of insurance, jewelry insurance comes in several different types, and the policy is often accompanied by a number of caveats. For people with valuable jewelry, getting personal jewelry insurance can be a very good idea, especially if the jewelry is worn frequently.
In order to get jewelry insurance, most companies require jewelry to be appraised. The appraisal process determines the value of the jewelry and also provides a detailed description of the pieces that will be kept on file with the insurance agency. Some agencies have a list of jewelry appraisal partners they work with, and others accept appraisals from independent providers.
Once this is evaluated, a policy can be written. The policy usually covers the replacement cost of the item, and some companies provide cash settlements, while others insist that the payment be used for replacement. Most insurance policies exclude careless driving, misplaced stones, and acts of God from their policies. Each piece of jewelry covered by the policy must be explicitly described, and if people want to add pieces later, these pieces must be evaluated first.
People should read jewelry insurance policies carefully to determine what is covered. Some, for example, will cover the costs of repairing damaged jewelry, while others will not. International travel may be covered in some cases, while in other cases the insurance is only valid in the nation of origin. There may also be other restrictions, such as a requirement that jewelry be stored in a safe deposit box at the bank when not worn.
Some people assume that renters and homeowners insurance also cover jewelry. In fact, jewelry is often excluded from such policies. Some companies offer brokers that can be used to extend jewelry coverage, while others do not offer jewelry coverage at all. People who are uncertain whether or not their jewelry is covered should contact their insurance agencies. In the event that the jewelry is not covered, the insurance agency can provide a referral to a company that will insure the jewelry.
Some companies offer gem insurance for loose gemstones, such as diamond insurance, while others only insure pieces of jewelry. You can find bracelet, necklace, earring, and ring insurance, and engagement ring insurance is especially popular. Information about jewelry insurance services can be obtained from insurance companies and dealers in fine jewelry. As a general rule, insurance and appraisal services should not be purchased from the company while the jewelry is being sold, but through an independent agency.
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