It is important to know or find out the value of a piece of jewelry before deciding whether or not it should be insured. It is impossible to buy sentimental value with money. Money cannot also be lost solely on sentimental value. Therefore, it is not a factor in deciding whether or not to insure a piece of jewelry. When deciding on how much insurance to purchase, it is important that the jewelry’s actual value be considered. If an unforeseeable circumstance occurs and the piece of jewellery needs to be repaired, the amount of insurance should be limited to the actual value of the jewelry.
Insuring jewelry does not aim to compensate for sentimental losses. There is no price that will bring it back. Insuring jewelry allows you to replace the damaged piece with a similar one, or a replica of the same jewelry.
Before you insure jewelry, make sure to review your home insurance policies! To cover jewelry in the house, you may already be paying more in your home insurance. Make sure you understand every of the clauses when you insure jewelry! Many times, there are lists that list the circumstances under which a piece of jewelry can be insured and those it will not. The same applies to jewelry insurance if you have it. You might have it insured in the event that it is lost, but not if it is damaged or destroyed. It is worth insuring if the jewelry is valuable enough.
When insuring jewelry, it is important to find out if you are changing your mind about the amount of insurance you would like, how policies apply, and what time you have to do this. It is also important to find out what the best insurance deal is for you. You may have an eight thousand dollar ring, but the insurance rate to insure it for five thousand dollars is better than the eight thousand. It may be wiser to only insure the five, even if you can afford the three thousand additional should anything happen. However, insuring it for more than its value would be a mistake. If something happened and you had to use your insurance to cover it, it would make it look like insurance fraud.
It is also important to inquire if your homeowner’s insurance covers jewelry. If so, what amount and in what circumstances? When deciding how much jewelry to insure, you can subtract that amount from the remaining amount.
It is a good idea to keep important documents in fireproof boxes after you have insure. Companies change and buy out all the time, so they might not have a record of your purchase or may not be able to locate it. Don’t trust anyone else to verify your insurance purchase. Always be prepared. Always be prepared.
