Your wedding band and engagement ring are probably two of your most valued possessions, and often, they’re also two of your most valuable. Yet, wearing them every day leaves them exposed to damage, loss and theft on a regular basis.
Jewelry insurance may seem like the perfect way to protect the value of your precious bands and other expensive accessories, but much like costume jewelry, it might not be as good as it seems.
How Jewelry Insurance Works
Jewelry insurance often works sort of like an HMO. If your insured piece is lost or stolen, you’re permitted to get another item of equal value (based on policy limits, which are set by the initial appraisal of covered pieces) from one of the jewelers chosen by your insurance company. This may or may not be the jeweler where you originally purchased the piece. In the event that you decide to take cash instead of a replacement piece, you likely won’t receive a check for the total value of the piece you insured. A comprehensive policy will offer some coverage for repair as well as replacement, but keep in mind that if the cost falls below your deductible, you’ll be paying out of pocket for the work.
Why You May Not Need Jewelry Insurance
Often, your home insurance policy already provides some limited protection for jewelry. Check your policy to see what’s covered and determine whether it makes sense to add supplementary coverage through a jewelry policy.
It’s also a good idea to think about the cost of the policy versus your actual risk and the value of your rings. Consider the annual cost of keeping the policy and think about saving that money instead so you can pay out of pocket should anything happen to your rings. This could be a lot more cost effective, especially when you consider the legitimate risk of your ring being damaged, lost or stolen. And even if you initially decide it’s more cost effective to skip the policy, be sure to have regular appraisals done so as the value of your jewelry rises, you can reassess the practicality of insurance.