How Much Does Jewelry Insurance Cost?

Whether you’ve just received the ring of your dreams or built up an extensive collection of fine jewelry, you want peace of mind concerning your prized possessions. You can rent a safe deposit box and lock everything away, but what fun is that?

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You want to enjoy your jewelry without worrying about dropping it down the drain or having it stolen. But is jewelry insurance worth it?

What Is Jewelry Insurance, and What Does It Cover?

Jewelry insurance is a separate policy that covers all types of valuable jewelry, watches and gems in case of damage, theft, loss or other mysterious disappearances. Jewelry insurance companies reimburse you to repair or replace the missing items once a jewelry claim has been filed.

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How Much Does Jewelry Insurance Cost?

According to Nerd Wallet, insurance rates for jewelry insurance are based on a percentage of the total covered amount and vary between 1% and 2%. For example, if you had $4,000 (CAD 5,404) worth of jewelry and the insurance rate was 2%, your annual premium would be $80 (CAD 109).

The insurance cost may be higher or lower based on deductible. Specialty jewelry insurers, such as Jewelers Mutual, often have a variety of deductible schedules for you to choose from so you can customize your policy to meet your needs.

Where Can You Get Jewelry Insurance?

You can research jewelry insurers online and ask for recommendations from local jewelry stores and gem sellers. Some jewelry insurance companies may partner with traditional property insurers. Most providers will supply an online quote and coverage details so you can compare prospects.

Can I Use Standard Homeowners or Renters Insurance for Jewelry Coverage?

Your homeowners insurance covers jewelry and other personal property, including furniture and clothing. However, most policies limit the liability for theft, leaving valuable jewelry, furs or collectibles unprotected. In addition, they often exclude loss due to misplacement or accidents.

You can raise coverage limits on your homeowners or renters insurance through endorsements and floaters.

• An insurance endorsement (or rider) lets you increase coverage limits for specific categories. For instance, you can increase personal property coverage by a set amount to protect a collection of valuable jewelry.
• A floater lets you add coverage for a particular item. So, you could extend your coverage to include a pendant necklace or a wedding ring. A floater policy also gives you more control over exclusions.

If you’re interested in extended jewelry coverage from your standard insurer, reach out to your agent.

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• Insurance Terms, What Is an Act of God?
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• What’s the Difference Between Homeowners and Renters Insurance?

How Much Does It Cost to Insure an Engagement Ring?

Floater policies and jewelry insurance providers fix the price for wedding band and engagement ring insurance by applying a set percentage to the value of jewelry. As a result, a $1,500 (CAD 2,027) engagement ring will cost less to insure than one that costs $3,000 (CAD 4,053). Once the total is calculated, insurers factor in coverage details like deductibles and out-of-pocket limits to arrive at an annual insurance cost.

Do You Need an Appraisal for Jewelry Insurance?

Companies must know how much your jewelry is worth to insure it, which is why most require an appraisal. An appraisal document includes details on your jewelry, including the type of stone, carats, setting, design and quality. It will also provide a dollar value for the jewelry.

Most insurance cost appraisals use replacement value. In other words, what would it cost to get the exact piece right now? Your appraised jewelry will most likely increase in value over time. Therefore, you should consider updating appraisals regularly.

Some jewelry insurance companies annually raise their coverage allowance to account for inflation. This process can save you money in the long run, reducing the need for repeat appraisals and ensuring your jewelry is valued correctly.