Choosing the best jewelry insurance policy means getting a peace of mind and putting enough safeguards for yourself in the event that things should go wrong.
Beyond the pages of legal jargon insurance companies provide, it is up to you to get the best value from the policy you choose.
Here’s the thing I frequently see happening over and over again when claims are filed. Most claimants don’t always get what they expect from the insurance companies and only realized they were insufficiently covered after filing a claim.
Start by reviewing your homeowners or renters policy because you may already have some cover for personal property – like jewelry – under the policy. If the current value of your jewelry far exceeds the maximum coverage offered, it may necessitate a separate policy.
I recommend choosing insurance companies who give clear explanations about their policies and the type of liability they can take on. In sales pitches, some agents may hold back on certain technical information which they expect you to read in the contract’s fine print.
That’s why you always need to pay attention and read through the fine print carefully. If there are any clauses you aren’t sure about, make sure you clarify them. If a company is not willing to explain the technicalities of their policies in a clear and concise manner, look for another company who does.
Once you’ve chosen a company to work with and agreed on a policy, the next step is find an independent appraiser to evaluate the value of your diamond jewelry. This is a vital process especially if you’ve chosen a “Replacement Value” type of policy.
Why so? Let me give you a hypothetical scenario. If the company evaluates your jewelry and sets the appraised value at $20,000 when the true value of the jewelry is only $12,000, you can expect to overpay significantly on your premium.
In the case of a loss, the insurance company may get a replacement deal that is far below the set value, say for example $12,000. What is worth $12,000 in retail may only cost the insurance company $8,000 to replace. This means that the insurance company actually profits at your expense at both ends!
Therefore, it is always advisable to get an independent appraiser to make sure the value of your jewelry has been accurately assessed. This will also ensure you are paying the correct amount of insurance premium for its replacement value.
1) Will the policy cover accidental lost and theft?
2) Are items lost during travel covered?
3) Do you need to have the piece of jewelry appraised?
4) In a loss, is the item replaced or is there a cash option?
5) Are there any kinds of deductibles?
6) Is there full value coverage on the item?
7) What are the fine-print clauses on jewelry care?
Lastly, there’s one final question you should ask yourself: is it really worth it to insure an item? Does it make economical sense to buy insurance for a jewelry piece which only costs $3,000? Would it be worth paying monthly premiums or would you be OK to replace the jewelry at your own costs?
With these tips in mind, I hope you are now equipped to better decisions when selecting the best insurance policy for your diamonds and jewelry. If you have any questions, feel free to leave a comment below.
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