Diamond Ring

Choosing the Right New Jersey Jewelry Insurance Policy

People buy expensive jewelry for loved ones as a sign of their love of that special person, or for the marking of a special occasion in their lives. When it comes to insuring an engagement ring, or other valuable jewelry, a person basically has two options; they can purchase an extension on their homeowners’ or renters’ insurance (also called a “rider”) that specifically covers the valuable item, or they can purchase a separate New Jersey jewelry insurance policy listing all of the valuables they want to cover.


Many of those that don’t have homeowners’ or renters’ insurance are likely to take out a policy through a company that specializes in jewelry insurance and can offer the specific coverage required based on the needs of the individual. The cost of coverage can vary greatly based on several factors, including the value of the item, where they live (because areas with a high theft rate will often pay increased rates), as well as whether or not the policy being considered has a deductible.


Important considerations when purchasing insurance


Policies without deductibles are likely to have higher monthly premiums. And, just as with any policy, including health and car insurance, it’s always a good idea to ask the insurer exactly how the deductible works. Other important questions to ask a potential policy provider is who chooses who repairs the jewelry should it become damaged? If the policy is for replacement value (instead of a cash payout) what happens if a suitable replacement cannot be found? When a claim is filed how does one go about proving the item was stolen? Also, are there any circumstances that aren’t covered?


Getting an appraisal is very sound advice


Before protecting the value of a high-priced piece of jewelry it’s important to know what it’s actual worth is. A thorough appraisal will include the carat weight, cut, color, and clarity of any diamonds, the carat weight and shape of any colored stones, the metal type and fineness, as well as any identifying marks, hallmarks, or stamps.


Most New Jersey jewelry insurance companies will require an appraisal for higher value pieces (for example, rings worth $5,000 or more) while an invoice or receipt suffices for less expensive items. If the center stone is around half a carat or larger, the jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory.


photo credit: abolotnov cc