Three things you need to know before buying jewelry insurance.
Will Jewelry Insurance policies pay cash if I have a claim?
The first thing to know is that most jewelry insurance policies are “replacement policies” and do not pay you cash to settle a claim. The policy usually obligates the Insurance company to “make you whole” by replacing the item with a “like kind” item. This is typically an item that matches all of the important description elements as close as possible.
Why do I need so much detail in a Jewelry Insurance Appraisal ?
Having a highly detailed description is very important to a jewelry appraisal. Without it the Insurance Company will not know the many specifics that went in to making your jewelry item. Detailed measurements, quality analysis, weights, current condition and multiple close up photos are important. With a detailed insurance appraisal the insurance company can determine what “like kind” is, and you will be able to verify that it is a good match as well.
Can I use my sales receipt instead of an appraisal?
All jewelry insurance policies have a stated replacement value for each item, that is the estimated amount the appraiser has determined to be what the “Insurance Company” needs to replace the item. The cost for the insurance company is usually less than the retail sales receipt. Since the replacement value is also the same value used to determine your insurance premium, ideally you would want the replacement value to be as LOW as possible, while still being enough for the insurance company to accept the policy risk. Sales receipts also lack the detail needed for replacement purposes, and may not reflect current replacement costs.
At Expert Jewelry Appraisers, we are Certified Insurance Appraisers and know how to properly describe and value your jewelry. We can help keep your jewelry insurance costs down while providing the insurance company what they need.