Why You Should Insure Your Jewelry Like the Stars Do
January 10, 2023
Many of us love to adorn ourselves with jewelry, but how many of us think about protecting our investment? Celebrities like Kim Kardashian and Cher certainly do, as private insurance is often a must for those in the limelight. Here are a few reasons why everyone should consider insuring their jewelry, just like the stars do.
Homeowner's Insurance Is Not Enough
Whether it is an engagement ring or a valuable necklace a grandparent passed down to you, losing a piece of jewelry worth that much is not just a sentimental loss but a financial one as well.
While your homeowner's insurance policy probably states it covers jewelry, it likely will not cover the replacement or repair that you may be expecting. Most homeowner policies limit coverage up to $5,000 for jewelry. In addition, the loss is typically subject to the policy deductible, which may be an amount more than the value of the jewelry. In this case, there may not be coverage in the event of a loss.
Insuring jewelry is essential to protecting your investment in case of theft, loss or damage due to natural disasters and other events. Insurance can help cover the cost of replacing items that have been stolen or damaged, and it can help ensure you get items as close to the original design or specifications as possible. In addition, with insurance protection, you are also eligible for a range of expert services, such as appraisal, repair and replacement options. A jewelry-specific insurance policy often costs just 1% to 2% of the jewelry’s overall value. Here’s an example: If you have a $10,000 watch, you could pay as little as $100 or $200 annually to cover the watch.
Some of the most commonly insured pieces of jewelry are:
- Engagement rings
- Wedding rings
- Earrings
- Necklaces
- Watches
- Antique pieces
It is important to remember that jewelry insurance doesn’t cover every type of loss. A jewelry insurance policy typically doesn’t cover:
- Wear and tear
- Intentional damage
- Pre-existing damage
- Pest damage
Jewelry Can Be Misplaced or Stolen
While it is rare for criminals to come and snatch jewelry, stolen jewelry is still a possibility. This is especially true for those in the public eye. Rihanna has likely become much more cautious about what she shares on social media after her house was burglarized twice in mere months due to personal information she posted online. It should serve as a cautionary reminder for us all: The way we use our digital platforms can have real-world repercussions if not managed wisely.
If you are leaving town for a trip, make sure your house is secured properly. It’s also best not to post your travel plans on social media before or during your trip; instead, post photos and memories when your return and are safely at home to deter opportunistic criminals. If you have a large jewelry collection, investing in a security deposit box for storage while traveling is another good idea.
Misplaced jewelry happens all the time. Earrings fall off, clasps break and your one-of-a-kind piece can be gone forever. According to a survey of 600 women conducted by Jewelers Mutual Group, more than 25% of them had lost a piece of jewelry while traveling. There are of course some travel hazards to be aware of when considering your jewelry collection.
- Airports– Reduce the number of possible hands on your pieces of jewelry by either wearing them on your flight or keeping them with you in your purse/carry-on.
- Hotels– Leaving jewelry in your room is always a risk— even if it is equipped with a safe. Just be sure to check your collection each time you come and go from the room, and, of course, immediately report anything missing.
- The Beach– Leave your jewelry where it is safest; do not risk bringing it out to play in the sand or natural water. The ocean has swallowed up many fine pieces over the years.
While there are many hazards that may arise during travel, making sure your jewelry is insured is the only true way to guarantee protection.
There are many examples of celebrities losing jewelry. Actress Zoey Deutch arrived at her Los Angeles home to find a door smashed in and a mess inside, not to mention more than $300,000 in jewelry missing. She was only gone for a few hours when the burglary took place. Luckily she had the jewelry insured and was able to recoup her losses. In another event, Kendall Jenner lost around $200,000 worth of jewelry when a guest at a party pocketed a couple of pieces from her personal jewelry box. Once Jenner noticed the pieces were missing, she immediately alerted the police. Unfortunately, the culprit was long gone by that point.
While yours may not be as eclectic or extensive as the celebrities’ collections tend to be, you deserve the same protection they get. The good news is you can have that same protection; just contact your insurance agent today and ask about insuring your jewelry. That way, if you are ever faced with the unfortunate loss of your jewelry, you will have peace of mind knowing you are covered. Remember, no matter how expensive or valuable your pieces may be, investing in jewelry insurance is the best way to protect yourself from any unexpected loss.