Do You Have Enough Jewelry Insurance

Do You Have Enough Jewelry Insurance

Do you​ Have Enough Jewelry Insurance?
Jewelry insurance comes in​ many forms and varieties and only an​ insurance agent can provide accurate and specific advice .​
However,​ it​ helps to​ know enough about jewelry insurance to​ ask your agent the​ right questions and to​ be aware of​ how the​ process works .​
the​ time to​ ask your insurance agent the​ questions is​ before you​ insure an​ item,​ not when you​ need to​ file a​ claim .​
Read the​ fine print in​ your insurance contract to​ be sure it​ provides the​ coverage you​ expect.
Understanding jewelry insurance begins with recognizing the​ difference between scheduled and unscheduled property .​
Unscheduled property (jewelry not specifically listed) is​ typically included in​ basic homeowner or​ renter’s policies under blanket coverage .​
There is​ a​ usually a​ deductible (typically $500) and a​ maximum amount of​ coverage (typically $1500) although these amounts can vary with the​ specific policy .​
This type of​ coverage does not require an​ appraisal but sales receipts,​ written descriptions or​ photos are beneficial in​ proving the​ items existed and estimating their replacement value.
Scheduled property (jewelry specifically listed) is​ included in​ a​ floater,​ rider or​ endorsement to​ homeowner or​ renter’s policies .​
Jewelry insurance is​ also available with a​ separate policy,​ from a​ company specializing in​ jewelry insurance .​
For scheduled property,​ the​ insurance appraisal is​ vital because it​ describes the​ jewelry item and provides the​ insured value that is​ used in​ determining the​ premium you​ will pay to​ insure the​ item each year .​
Most scheduled property policies do not have an​ automatic appreciation adjustment as​ is​ common for the​ house and other unscheduled property .​
Therefore,​ even if​ it​ might cost 50% more to​ replace an​ item in​ five years,​ the​ insured value is​ still only that stated in​ the​ appraisal .​
If you​ file an​ insurance claim,​ the​ settlement process and amount paid will depend on​ the​ policy and in​ particular,​ if​ the​ policy allows replacement or​ agreed value settlement .​
For agreed value policies,​ the​ settlement amount is​ stated in​ the​ policy whereas replacement value allows the​ insurance company to​ replace your jewelry or​ make a​ cash settlement based on​ the​ insurance company’s cost to​ replace your item .​
the​ insurance company’s liability ceiling is​ set at​ the​ insured value on​ the​ appraisal .​

Do you​ have enough jewelry insurance? the​ answer depends on​ what kind of​ policy you​ have,​ the​ insured value is​ on​ the​ appraisal,​ the​ settlement procedure is​ for your particular policy,​ and the​ accuracy of​ the​ information on​ your appraisal .​
If you​ have a​ jewelry item valued at​ more than the​ $1500,​ you​ should definitely consider scheduled as​ opposed to​ unscheduled coverage .​

The critical issue for scheduled property coverage is​ the​ how accurate is​ the​ information on​ the​ appraisal .​

1) If the​ information on​ the​ appraisal is​ vague and general,​ the​ insurance company can replace the​ item with an​ item that satisfies the​ description but perhaps is​ not the​ quality and true value of​ the​ lost item .​
Be sure your jewelry appraisal has a​ detailed and accurate description of​ the​ jewelry item.
2) If the​ appraisal value is​ artificially high,​ the​ insurance company can replace the​ item at​ their cost even though the​ client paid premiums for years on​ a​ value twice as​ much .​
This is​ often the​ case for purchases from a​ jewelry store with prices double other retailers and the​ store provides an​ insurance appraisal even higher than the​ purchase price .​
you​ do not need an​ appraised value more than 150% of​ the​ price you​ would pay at​ low priced online retailer.
3) If the​ appraisal value is​ too low,​ the​ insurance company can make cash settlement that might not cover the​ current replacement cost of​ the​ item .​
This could be the​ case for items purchased three or​ four years ago from a​ low price online retailer and the​ appraised value was at​ or​ below the​ purchase price .​
With diamond prices increasing about 10% a​ year recently,​ it​ does not take long for appraisal values to​ be out of​ date if​ too close to​ online retail purchase prices .​
Be sure to​ have your jewelry insurance appraisal updated every four or​ five years so you​ do not end up underinsured.

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