How much insurance should I carry on my jewelry?
The truth is there are different opinions concerning
how much insurance you should
carry on your jewelry.
Our opinion is that you carry as little as necessary to cover your jewelry if it
is lost or stolen.
Example:
If you pay $3000.00 for a piece of jewelry,
and receive an appraisal for
$6000.00 or $7000.00,
you will pay premiums based on the appraisal amount.
If your insurance policy is like most you will receive coverage
of about $3000.00 the actual cost of replacement.
A lot of policies justifiably have clauses that allow their insurance adjusters
to shop for the item or items claimed.
Another factor to consider is what jewelry is at the most risk.
Items such as expensive earrings, expensive pendants,
and expensive bracelets are easily lost off of your person.
Other jewelry that is at high risk is jewelry that is used for occasional wear
and is left at home a percentage of the time.
What you should do is get an accurate appraisal on your jewelry.
Talk to your insurance agent so that you understand the coverage you have.
Make a decision on which jewelry is the most at risk and buy insurance based on those facts.
You should probably not pay for appraisals on jewelry that retail for less than 100 dollars.
Some people set a higher minimum.
When we do an appraisal we add 20% to our retail to cover inflation for a few years.
One idea that we particularly like is to make an itemized list
of all of your less expensive jewelry in case of a total loss, such as a fire.
This idea applies to all of your belongings but of course do not keep the list at home.