Every piece of jewelry tells a story. Carefully crafted in stunning gold, silver or platinum, these items can transport us through time. The gleam of a diamond-studded wedding band can instantly bring you back to the moment you spoke your vows. At the same time, a beloved heirloom Rolex can remind you of prior generations' hard work and commitment.

Nestled in a bed of protective velvet, what stories will your collection tell? Whether you acquired them for sentimental, aesthetic or financial reasons, the most compelling collection is one you craft yourself. Similar to the special thought and consideration that goes into acquiring new items, how to go about protecting your collection requires foresight and due diligence.

In this article, we'll cover ways to protect your watch or jewelry collection at home and with the powerful benefits of jewelry insurance.

Protecting Your Collection

Many collections are passed down through generations, with each piece growing in value and gaining new memories as the years pass. If you keep the bulk of your jewelry and watches at home — as opposed to the paramount security offered by your trusted banking institution's vault — here are some security measures you must incorporate:

  • Install a security system – Your home is your castle, but there's always the risk criminals can infiltrate it. In August 2023, thieves stole approximately $3 million in jewelry from a Frederick County, Maryland, home during a 45-minute window when the homeowner was absent, according to coverage by the Baltimore Banner. Investigators were aided by the homeowner's security system, which captured a suspicious vehicle driving up and down an alleyway behind the home multiple times. Installing a comprehensive home security system featuring real-time monitoring can help ensure your items remain in the proper hands and an efficient response should the unexpected occur.
  • Store your jewelry in a safe location – While your antique jewelry armoire may be the pride of your boudoir, it won't do much to protect your jewelry if something goes awry. Instead, invest in a heavy-duty home safe that's fire-safe and theft-resistant. Some safes now include fingerprint readers, allowing you to limit who can access your valuables. Brown Safe, a provider of luxury jewelry safes, offers a safe buying guide and other information to help get you started. For those who prefer timepieces, Brown Safe also offers watch-specific models that can wind your watches for you.
  • Have someone at home for repairs and servicing – Many thefts are crimes of opportunity, with thieves taking advantage of distractions and divided attention to make off with your hard-earned goods. The same, unfortunately, holds true when strangers enter your home for repairs and other services. Maintaining proper oversight of repair professionals not only ensures they're safe in your home, but it can also keep your valuables safe. Imagine you're getting ready for the social event of the season and open your jewelry case to discover your triple-strand pearl necklace — valued at nearly $1 million and the perfect on-trend accessory for 2024 — is missing. You hurriedly consult your home security system and discover your HVAC technician previously entered your rooms without your approval. As you contact the authorities, you cringe at the thought of your beloved pearls being illicitly sold, never to be seen again.

Insuring Your Collection

The steps outlined above can help ensure your collection remains in the proper hands, but even the best-laid plans can go wrong. That's where insurance can help.

Standard homeowners policies provide some coverage for jewelry, between $2,500 and $10,000 on average, and only if it is stolen. Still, it's likely that your collection needs a higher limit than those offered under conventional policies. In that case, you can purchase an additional insurance rider, but the coverage amount might not be enough.

Instead, consider purchasing a standalone jewelry policy. These policies are designed to address the myriad of risks surrounding your jewelry or vintage watch collection, such as theft, fire and natural disasters. Additionally, some carriers offer additional benefits that can enhance your enjoyment of your collection by connecting you with qualified professionals who can share advice on protecting your jewelry, referring you to jewelry specialists and providing valuable coverage features not seen in standard homeowners policies.

For example, some policies include mysterious disappearance coverage. This valuable jewelry-specific insurance benefit can provide vital peace of mind when you and your household staff desperately try to find your missing Rolex. Many losses can be blamed on thieves and criminals, but some are simple accidents. Mysterious disappearance coverage can help you recoup your losses in the event of an unexplained loss.

If you’re considering protecting your collection with insurance, it’s essential you:

  • Annually appraise your collection – Some high-net-worth insurance companies don't require an appraisal unless the piece of jewelry is valued at more than $100,000. However, conducting regular appraisals each year means you can be confident in your existing coverage amount. Ask your appraiser to take high-quality photos of the items during this process so you have them on file if you ever need to file a claim or police report.
  • Carry out routine inspections – When you remove a piece of jewelry or watch from your safe, examine it closely. Stones can become loose over time, increasing your risk of loss. If you notice a loose stone, scratch or other issues that could potentially lower its value, take it to your jeweler immediately.
  • Cover your items from the moment of purchase – If you're making a significant purchase, contact your insurance broker as soon as the sale goes through. Some policies provide short-term coverage for new items if you already have jewelry itemized on your policy, but they're usually limited to a set percentage of the itemized coverage. Your broker can promptly add the item to the list, so you can enjoy the full benefits of your policy.
  • Keep your policy value up-to-date – The value of gold reached a 52-week high of $2,148.78 per one troy ounce on Dec. 4, 2023, and it's likely to hit record highs in 2024. If your collection heavily features gold, silver and platinum, as well as other precious metals and stones, it's important to stay on top of their potential value. Increases in market value make these items a powerful investment opportunity — and predicted style trends for 2024 make layering gold and silver chains a must — but failing to stay on top of these changes could result in insufficient coverage. Something that could make you responsible for a larger percentage of the loss than you’d prefer. Some carriers will pay market value in the event of a loss that exceeds your coverage, so shop around for a policy that fits your needs and lifestyle.

Jewelry insurance is vital for all serious watch and jewelry collectors. If you need help determining what kind of jewelry insurance is best for you or assistance finding someone to appraise your collection, contact your Gallagher risk advisor. They can advise you on the best coverage to fit your needs and assist you in the event of a claim.