If you recently bought or received a precious bauble from a loved one, hopefully, it came with an insurance policy. If not, now is the time to invest in one. Here’s why:

Jewelry Limits are Low on Most Homeowners and Renters Policies
Most homeowners and renters insurance policies have a $500 to $5,000 limit on jewelry per policy. If you want to protect your finest pieces, then it’s best to either add an endorsement to your homeowners or renters policy or purchase a stand-alone policy if an endorsement is not offered. Both stand-alone and endorsement policies usually require jewelry to be appraised by a certified jeweler in order to qualify for coverage.

Pricing for endorsements and stand-alone policies are based on many factors, including the type of jewelry, the insurance company you choose, your geographic location, and where the item will be kept. For example, storing your valuable item in a bank vault will substantially reduce your rate.

Unexpected Events Happen Unexpectedly
Dale Krupowicz, manager of Kornreich-NIA’s VIP For Life Division, an affiliate of The NIA Group, highly recommends that clients insure fine jewelry items immediately after they are received or purchased. “This way, if valuables are lost or stolen, either inside or outside the home, the insurance company will replace them or provide a full refund. Coverage essentially provides peace of mind,” explains Krupowicz.

Krupowicz also suggests that individuals contact their insurance brokers as soon as they purchase or receive fine jewelry. “Your insurance broker should be able to tell you whether your jewelry can be sufficiently covered under your homeowners or renters insurance policy or if an endorsement or stand-alone policy is best.”

Once you have your jewelry insured, Krupowicz recommends that you have it appraised every 3 to 5 years to account for an increase in value over time.

You can contact Dale Krupowicz directly at dkrupowicz.kornreich@nia.com or 800-642-6650.