Now is the perfect opportunity to ensure that your high-value items on your insurance policy accurately reflect your valuable possessions. It’s smart to review what jewelry is listed on your insurance policy to ensure what is listed accurately reflects what you have.
We provide coverage for collectors and valuables in a number of areas, including:
- Antiques
- Coins
- Fine Art
- Firearms
- Furs
- Jewelry
- Silverware
- Stamps
- Wine
Keep reading as we delve into protecting your valuable possessions, focusing on jewelry insurance and appraisals.
Why Invest in Jewelry Insurance?
Standard homeowners, condominium or renters insurance policies include a limited amount of coverage for collectibles, jewelry, and other valuable items. However, many policies limit the dollar amount of coverage for the theft or loss due to a covered peril of such items. To properly protect certain types of valuables, additional coverage is available through a policy endorsement or an additional separate personal articles policy.
Here are three risks associated with relying solely on your homeowners insurance to protect your jewelry and collectibles:
- Inadequate Coverage: Homeowners or renters insurance may not provide enough coverage for jewelry that is accidentally lost or damaged.
- Limited Reimbursement: A typical homeowner policy could have a deductible of $500 and could only cover up to $1,500 of jewelry for certain types of losses. This could leave you with only $1,000 of coverage if you file a claim.
- Depreciation vs. Replacement Cost: When a jewelry item is separately listed on an insurance policy, many carriers apply an annual inflation factor to reflect the current cost.
The Importance of an Up-to-Date Appraisal
After many years, the compounding inflation on the initial value may have outpaced the item’s current replacement cost. This is why it’s a good idea to also review the values. To lower the value that is listed on the policy, many carriers require a Retail Replacement Cost appraisal, not a Fair Market Value Appraisal.
During the pandemic, the values of certain items, such as vintage watches, experienced significant increases due to heightened online shopping trends. Without proper appraisal and adjustment, policyholders may not be adequately covered in the event of a loss.
For your most valuable jewelry pieces, we recommend appraisals every 3-5 years. The best appraisals use comprehensive forms (not just receipts) with photographs from an appraiser with national certification from an accredited source with any of the following designations:
- GG: Graduate Gemologist of the GIA [Gemological Institute of America] A very high designation; an appraiser will indicate this credential if they have this.
- FGA+: Fellow of Gem-A [Gemological Institute of Great Britain] with Diamond diploma (confirm the “+” is there as it signifies training with colored stones as well as diamonds)
- CIA: Certified Insurance Appraiser in jewelry, and that appraiser is also a GG or FGA+
Please note neither GIA Certified Appraiser nor GIA Diamond Graduate or similar designations are credentials.
In addition to determining value, appraisers will also check an item’s condition. Over time, prongs and clasps loosen, and threads weaken. The appraiser will see this and can prevent a potential loss.
Protect Your Jewelry With Acentria’s Personal Collections Insurance
Contact us today to get started and ensure your prized possessions are safeguarded. To connect with a team member, visit our locations page to find an office near you or give our team a call to discuss your best coverage options at 866.374.5084.
Protecting your valuable assets is our priority, and we are here to assist you every step of the way.
