MS&H Blog

Proper Coverage   for Your Jewelry

Many people overlook the need to properly insure their expensive jewelry, believing that it is automatically covered by their homeowners policy. While homeowners policies do cover jewelry, this   insurance usually   is subject to a much   lower limits than  the overall contents  coverage.

This is called a “sublimit,” and a typical sublimit is $1,500 for loss by theft of jewelry , watches, and precious and semiprecious stones. If your jewelry is worth more than the sublimit in your homeowners policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.

  • Arrange an appointment with your agent to review your jewelry.  Bring as much information about your jewelry portfolio as possible, including any appraisals.
  • If you have not had your high-valued jewelry appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require an appraisal from a graduate of the Gemological Institute of America (GIA) on more expensive jewelry.  The Institute’s G.G., G.J., or A.J.P. designations at the end of an individual’s name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.
  • Make sure the appraisal has a description of the diamond ‘s four C’s-(a) carat, (b) cut,
    • clarity, and (d) color. The “carat” refers to the weight of the diamond. The quality of the “cut” of the diamond results from the way light enters the stone and is reflected “Cut” is also used to refer to the diamond ‘s shape, such as round or pear-shaped . The “clarity” refers to the prevalence of minor spots, lines, bubbles, or other natural imperfec ­tions within the diamond. The “color”denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.
  • Purchase inland marine coverage that can be added via an endorsement onto your homeowners policy. This endorsement (also available as a separate policy) provides much broader coverage than the limited protection found on the unendorsed homeowners policy.
  • Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.
  • Review your jewelry protection with your agent at least every 2 years or whenever you sell or purchase high-value jewelry .


Copyright 2008, International Risk Management Institute, Inc.

Related Articles

shutterstock 319386539

Your ‘Fur Baby’ May Not Be Covered on Your Homeowners Insurance

Source: You may have pet insurance to protect your pet if there is a health issue such as an accident or illness. But does …

Read More >
shutterstock 1694217898

Employer Overview of the COVID-19 Vaccines

This article provides an overview of the COVID-19 vaccines and answers some common questions relevant to employers.  Information comes primarily from the Centers for Disease …

Read More >
shutterstock 520731397

Consumer Driven Health Plans and the Current State of Consumerism

Employee behavior and lifestyle are significant factors in health status – often trumping genetics, the environment or access to care – and can have a …

Read More >