Haps and mishaps are part of life. It is never a bad idea to have back up plans for any situation, for things that might or might not happen to you. People get insurance to cover valuable things not because they expect something to go wrong but for protection from loss in the case something does occur. Considering the price and sentimental value of your precious valuables, they should also be protected.

Why is fine jewelry insurance important?

You return home after a wonderful night out with your spouse to find your home’s been ransacked. It’s been stripped of all its valuables—including all your jewelry—and to add to the devastation, you’re not insured. Grandma’s ring, the anniversary band your husband gave you on your twentieth, your lifetime collection of necklaces, all your earrings, bracelets, and chains…years of sentiment, all gone. Not a pleasant scenario.

Should you get fine jewelry insurance?

When buying insurance, you’re spending money on something you and the service provider hope you never use. Is that fair? Does it make sense? Maybe yes, and maybe no. You have to decide. Value, sentiment, emotion, and your aversion to risk all play a part in answering that question. With insurance, you are spreading the risk around so that you don’t suffer from covering the entire loss yourself.

Know your other insurance policies

The first thing to do is to check your existing homeowner’s or renter’s insurance policy and see what you have. Most policies cover $1,000 to $15,000 of unscheduled personal property. Some policies go higher. This means that if you lose $25,000 of jewelry—along with the TV, your three computers, your husband’s vintage pocket watch collection, and mom’s good silverware—bummer. You’re sadly under-insured.

Four Things You’ll Probably Need to Insure Your Jewelry

1.The original receipt, if possible. Don’t worry if you can’t come up with one. A good appraisal works most of the time.

2. Certificates. Larger gemstones—especially diamonds—are often graded and certified by one or more industry accepted organizations. The most recognized one is the Gemological Institute of America (GIA).

3. A valuation certificate. Most insurance companies require a valuation certificate, especially for more expensive items. Often, they won’t accept the one from the store from where you bought the piece. You’ll need to have a separate certified valuation expert to work up an appraisal/valuation for you. Ask what they require before getting your jewelry appraised/valued.

4. Pictures. Usually, these are included in the appraisal. Nonetheless, photograph all your jewelry for your own records.       

Questions you should ask your insurance company

1. Should you choose a blanket coverage for everything or have separate coverage for more valuable items?

2. What exactly is covered?

3. What kind of loss is covered?

4. Are there circumstances that aren’t covered?

5. How will you be compensated?

6. How will your compensation be valued – current valuation of the item or the valuation at the time when it was insured or bought?

7. Does the policy cover repair or partial loss?

8. What documents do you need to make a claim?

9. How can you lower the insurance premium?

It is always better to be safe than worry about or risk a high value loss.