I've seen it a lot of times. People come to get estimates or appraisals for jewellery that has been lost, stolen, or broken. They want to know if the appraisal can be done without seeing the jewellery or based on what they remember it looking like in the past. Unfortunately, insurance companies won't accept this kind of evaluation or appraisal, especially after the fact. In the next article, I'll tell you what to do to get your jewellery properly valued and insured.
Ratings that can be trusted
Insurance companies need official appraisals from a trustworthy jeweller to back up your jewellery policy. The best appraisals will come from jewellers who have studied with or been trained by the Gemological Institute of America (GIA). Being trained by GIA makes sure that the grading analysis is conservative and that the value of the jewellery is correct. Most insurance companies do not require you to have your jewellery appraised by GIA graduates. However, it is always better to have someone with these credentials do it.
Your appraisal should include details about the precious metal, like how much of it there is, how pure it is, and what colour it is. Shape, carat weight, colour, clarity, and cut grade should be used to describe the diamonds and gems. If the diamonds have already been certified by a lab, you should give the appraiser a copy of the certification and ask them to put this information on the appraisal. If you can, ask the appraiser to take a picture of the items and include that picture with the appraisal when you send it to the insurance company. Keep a copy in a safe deposit box or fireproof safe at all times.
Every 7–10 years, jewellery appraisals should be looked at again to see if the items' value has gone up. Jewelry is a good, and just like any other good, its price can go up or down. In the last few years, the price of some diamonds has doubled because there aren't enough of the shapes and sizes that people want. When you try to replace a piece of jewellery that has lost its value after its value has gone up and you haven't had it reassessed, there will be gaps in your coverage.
How to Choose the Right Insurance
People's biggest mistake is thinking that their homeowners insurance will cover them if something bad happens. This is the furthest thing from the truth. Most home insurance only covers personal items worth between $1,500 and $5,000, and there is a $500 to $1,500 deductible. Along with that, some homeowner's insurance policies don't cover loss, damage, or the diamond falling out of its setting.
The best way to make sure your jewellery is covered is to have your agent write you a policy for personal items. This policy should cover loss, theft, damage, and loss of diamonds and gemstones. Ask your insurance agent to give you a quote for a policy with the above coverage and no deductible. Jewelry insurance costs between $1.50 and $1.85 per hundred, so if you're quoted more than that, you're probably paying too much. To figure out the annual premium, multiply the jewelry's appraised value by the rate, then divide by 100. Example (appraised value $10,000 X $1.50 = $15,000 (Division by 100 equals $150 per year.)
Some insurance agents in your area don't know much about jewellery insurance policies, so you might not feel like you're getting the right help. There are a couple of jewellery insurance companies with great customer service, and if your agent doesn't help you in the right way, you should call them. CHUBB Insurance and Jewelers Mutual are the two I like the most. These companies are experts in insurance for personal items, and they usually have the best rates and the most coverage. You can find out more about these companies by going to http://www.andrewsjewelers.com/.
Insurance is something you don't need to think about until you need it. I will say, though, that it makes a lot of sense to get jewellery insurance. Let's say you wear every day a wedding set worth $5,000. How often do you carry $5,000 around with you? Almost never on the mark? Well, in some cases, you wear the same thing as jewellery all the time. If you wear valuable jewellery every day, you are definitely increasing the chances that you will lose it. To insure jewellery worth $5,000 can cost as little as $75 per year. It's worth every penny so you can wear it with pride and not worry about it.
Andy Moquin
President of Andrews Jewelers, Inc.
http://www.andrewsjewelers.com
