Your jewelry is precious to you. To insure or not insure?

Valentine’s Day is just around the corner and of course this girl starts thinking “jewelry.” I recently lost mine when my home was broken into and I had no insurance because I didn’t think my collection was really valuable. Now it’s gone and I feel quite differently.
Over the course of our lives, most men and women amass a collection of invaluable pieces – our father’s timepiece that has been lovingly passed down, cufflinks from Uncle Kevin, our engagement ring, that diamond tennis bracelet from the 80’s that we don’t necessarily wear anymore, but sits in our jewelry box because it’s valuable. Some items have more sentimental value that monetary, so should we insure them?
Imagine this scenario: You’ve been at the beach all weekend, and come home to find your home has been ransacked. Your TV, laptop, gaming system, 2 Ipads, video camera and all your jewelry is missing. The first thing you do is check your existing home owner or renter’s insurance policy and see where you stand. Most policies cover $1,000 to $15,000 of unscheduled personal property. Some policies go higher, but if have just lost $25,000 of jewelry along with your electronics, hubby’s vintage watch collection, Nana’s good silverware – ouch. You’re underinsured. Suddenly those items personal value spike when they’re gone.

How about “Scheduled” jewelry insurance?

“Scheduled” means the item is listed separately and not attached to everything else. This can be part of your existing policy or it can be completely separate. Scheduled jewelry insurance normally costs around $1 to $2 per $100 worth of jewelry per year. When you’re the type who is already paying for fire, car, health, life, liability, etc., you may have to ask yourself Is it worth the peace of mind to add jewelry to the list?
If you decide your jewelry is important enough to insure, you will need a few things. You’ll need an appraisal or the original receipt. You will be asked to provide certificates. Larger gemstones, especially diamonds, are graded and certified by one or more industry accepted organizations. The two most common are the GIA and the EGL. Pictures of your jewelry are usually included in the appraisal, but you should have them for your own records anyway.
Ask your insurance agent lots of questions about your policy and make sure everything is in there in writing. Some examples are: How will you be compensated if you jewelry is lost or stolen? Are there any circumstances in which you aren’t covered? Is your jewelry covered at the cost it was when you first got it or its value today? Does my policy cover repair or partial loss?
And if you get engaged this Valentine’s Day, CONGRATULATIONS! Get that ring insured! The Knot has some excellent advice on the topic here.