by Jennifer Mcdonald

Created on: August 29, 2009

How to buy insurance for your jewelry?

When seeking insurance for your jewelry the first thing to consider is choosing an insurance company. The reason for this is you need to know what the insurance company will cover before you can make an informed decision about which company to use. This is important because insurance companies differ vastly in what they will cover.

Some insurance companies have unscheduled personal property coverage which limits jewelry coverage. There is scheduled insurance coverage which will insure specific jewelry items. Some companies will charge a higher rate for more expensive pieces. It is likely that you will get a better rate if you insure your jewelry with the same insurer that insures your mortgage and your automobiles.

Before choosing a policy an appraisal should be done. This will be used to verify the value and quality of items. These will be useful to establish ownership of items in case they are lost or stolen. Appraisals should be updated to make sure you have adequate coverage for replacement value.

There are certain basic guidelines you can follow to ensure that you get adequate coverage as determined by your needs and lifestyle.

You will want to know how settlements are determined. Will the reimbursement amount be determined by the amount of the insurance bought or by the replacement value? Will the amount be settled in cash or will the item be replaced or repaired. Try to get coverage that would replace items for their comparable value and quality.

It is good to get the value of your replaced item but what if you have inherited pieces or one of a kind custom pieces that cannot be replaced. You will have to know how such items will be covered.

Also there is the matter of people who travel. Does the insurance policy cover all locations or just your home city? Will you be assuming the risk for your jewelry if you travel with them or does your policy cover all risks even disappearances that might seem mysterious.

Some insurance policies have exemptions you might not be insured for. If you were negligent in the loss of your jewels they might not be covered. It would be a good idea to buy a policy that covers what could be construed as negligence.

Know what your deductibles are before you accept the policy. Have photographs of your jewelry and find out if your insurer considers photographs to be sufficient documentation.

Knowing what your options are when purchasing insurance is the best way to recover some of the damages when faced with the loss of your jewels. If buy this type of insurance is overwhelming you; seek help from an insurance agent who specializes in jewelry insurance.

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