Whether you are buying jewelry as a gift, to mark a special occasion like an anniversary, or you collect fine jewelry or watches, your expensive purchases should be protected by jewelry insurance. Jewelry not only has monetary value but has sentimental value. Jewelry can represent a special memory or be passed down through generations. Maybe you’ve spent several months salary on a Tiffany & Co. engagement ring and are popping the question on Valentine’s Day, or you bought yourself some jewelry to lift your spirits during quarantine. Your valuable possessions are subject to loss and should be safeguarded.
Jewelry is Subject to Many Different Types of Losses
Due to it’s portable nature, jewelry is easily misplaced, lost, and stolen. Research from the University of North Carolina found that during a break-in 68% of burglars look for jewelry. (1) Other risks include losing or misplacing your jewelry, fire, damage, and mysterious disappearance. Imagine the following scenarios:
- you travel to your vacation home in Naples, Florida and while unpacking, you discover your Cartier necklace is missing from your suitcase.
- you and your spouse are enjoying a walk on the beach, you return to your vehicle and discover one of your diamond earrings is no longer in your ear, it has disappeared.
- your husband’s Patek Philippe watch gets stolen from his locker while at the gym.
Unfortunately, these scenarios happen every day and without the proper type and amount of insurance you could be left paying out of pocket to replace your valuable items.
A Large Percentage of Jewelry is Uninsured
Most successful individuals purchase car insurance and high value home insurance to protect those costly possessions, yet few realize the importance of protecting valuable collections such as wine collections, art collections, and jewelry. According to the U.S. Bureau of Economic Analysis, for 2018, spending on jewelry and watches… totaled $82.53 billion.(3) With Americans spending billions of dollars on jewelry, a large percentage of it remains uninsured. Jewelry can be among your most expensive possessions and should be protected by insurance. The Knot’s 2020 Jewelry And Engagement Study lists the average cost of an engagement ring at $5,500 (4), however successful individuals are known to spend as much as four times that amount. A significant expense, your engagement ring is worn daily, which increases the risk of it being lost, stolen or damaged. Jewelry insurance provides a way to replace your valuable items in the event of a loss.
Will My Homeowners Insurance Cover My Jewelry?
Many people assume their home insurance coverage protects personal possessions such as their engagement and wedding rings.
Most high value home insurance policies will protect jewelry from some types of losses
BUT most limit coverage to up to $5,000.
$5,000 doesn’t cover the cost of most engagement rings, wedding rings or luxury watches and if your jewelry is worth more than the amount allowed on your policy, you will have to pay out of pocket for the remainder, in order to replace them.
In Addition, many home policies will not pay to replace jewelry that is lost. Loss is the number one jewelry risk. Our partners at Chubb Insurance report that over 50% of jewelry claims are due to a piece of jewelry being lost or misplaced. (2)
How Can I Make Sure My Jewelry Is Properly Covered?
There are two choices for keeping your jewelry collections and other valuable items protected:
- Your dedicated McSweeney & Ricci Private Client Risk Manager can increase the limits on your homeowner’s policy until they are high enough to provide coverage for your items, or
- Our team can “schedule” your jewelry with a “floater.” A floater can either be a stand alone policy or be added as an endorsement onto your home insurance. A floater protects valuable personal property that requires more coverage than what is offered by a standard homeowner policy.
Choosing the Right Insurance for Your Valuables
Selecting the right jewelry insurance isn’t just about finding a fair price. The right insurance to protect your jewelry and other valuable possessions involves customizing protection to suit your individual needs and lifestyle, help securing quality appraisals, and advising you of ways to minimize your risk of theft.
With over fifty years of expertise, McSweeney & Ricci’s Private Client Group works with eight different premium carriers including Chubb and Vault. These partnerships allow us to select the best combination of coverage options for your needs. We offer concierge-level service and an on-site claims department to ensure a smooth claims process.
Rely on our Private Client Group for:
- assistance scheduling appraisals
- advising you where to keep your jewelry in order to keep it safe
- recommendations for quality jewelry repair to ensure your jewelry is repaired correctly when damaged
We Offer Custom Jewelry Insurance That Includes:
Agreed Value Coverage-we’ll help determine the value of your items. After a covered loss, you’ll receive 100% of the Agreed Value in cash. It’s your choice to keep the money or replace your item.
Coverage For Newly Acquired Items-For an existing collection you’ll have replacement cost coverage (up to policy limits), on any new items you purchase. Take up to 90 days to add your new item to your schedule.
Worldwide Coverage-Your jewelry is protected whether at home, away on vacation or while traveling anywhere in the world.
Protection From Market Increases-Regular appraisals keep your coverage amount in line with your item’s market value. If market value has increased above your coverage at the time of a loss, you’ll receive up to 150% of the scheduled value.
Whether you collect jewelry, luxury watches or simply have one or two valuable and/or sentimental pieces such as wedding/engagement rings, jewelry insurance allows you to replace them if they are lost or stolen. Most agree that over a 10-20 year time period, it is possible for a quality piece of jewelry to appreciate or even double in value, so your expensive pieces may be worth even more at a later date.
Call (844) 501-1361 and speak to McSweeney & Ricci’s Private Client Group about protecting your collections & valuable items with premium jewelry insurance or request a complimentary quote on our website.
- “How to Protect Your Jewelry” Chubb Insurance How to protect your jewelry_r2.indd (chubb.com)
- “Here’s How Much To Spend on an Engagement Ring” The Knot.com 12/18/20 by Sarah Hanlon