WESTCHESTER COUNTY, N.Y. -- Last Valentine’s Day roughly $4 billion was spent on gifts of jewelry. Since sparkling presents have become such a popular gift item at this time of year, we at Advocate Brokerage decided to do our best to review the ABCs of insurance coverage for jewelry.
A is for Appraisals
The markets for gold and precious stones fluctuate frequently, so Advocate Brokerage recommends re-appraising every 3–5 years. If you do not have an up to date appraisal and your jewelry is lost or stolen, you may not be able to receive the full value of the item when you file a claim. If you have no appraisal, not only do you run the risk of recouping less than the full value of the item, the carrier will request one and the result could be a delay in payment of the claim.
B is for Background Checks
No one wants to consider that their domestic staff may one day steal from them, but sadly it is not uncommon. If you have a maid, nanny or other domestic worker, be sure to insist on a background check.
C is for Cache
If you have a soft spot for beautiful jewelry, place your most valuable pieces in a cache for safe keeping. The safest place for jewelry may be a bank safe, but if you opt for a home storage solution, be sure that the safe is either heavier than 750 pounds or bolted to the floor in order to deter thieves. It is important to note that many insurers require a photo showing that the safe is bolted.
D is for Disclose
Be sure that when you add a piece of jewelry to your collection you disclose that piece of information to your insurance company. Keep in mind that the more information your insurance agent has about your life and your possessions, the better they are able to protect you.
E is for Enhancement
Most conventional homeowner’s policies severely limit coverage for jewelry. Most only offer the restrictive Actual Cash Value form, which allows for depreciation and disagreements regarding the valuation and a deductible is often imposed. Coverage may be limited. Advocate Brokerage recommends enhancing your homeowner’s policy by extending coverage for jewelry. Coverage is worldwide and there is no deductible.
F is for Fix
If you discover a loose stone on your engagement ring or notice that the clasp of your necklace is not working as well as it should, we urge you to have it fixed right away. It is better to have your jewelry repaired and restored rather than losing it and having to deal with filing a claim.
Advocate Brokerage believes in educating our clients so that they have the information needed to make important decisions when it comes to protecting their possessions. Now might be a good time for you to have a conversation with us about a Valuable Items or Collections Policy.