Jewelry Insurance is available in many different forms and varieties. In order to obtain accurate and specific advice, it’s important to consult a professional insurance firm or authorized agent. It pays to know something about jewelry insurance so you will know which questions, and to be aware of how the process of obtaining the cover works. Obviously, the time to ask questions is before insuring the jewelry and not when filing a claim. It pays to read the fine print in the insurance policy in order to ascertain whether the proper coverage is offered.
A deeper understanding of jewelry insurance starts with the recognition of the differences between scheduled property and unscheduled property.
Unscheduled property, with jewelry excluded from the listing, is included in basic homeowner/rental policies under umbrella coverage. There is a premium deductible and a ceiling to the maximum amount of coverage extended. There is no prior appraisal conducted for this kind of insurance policy but sale receipts, written confirmations, photos and descriptions are crucial in proving the existence of the items and their estimated value of the replacement.
Scheduled property, with jewelry items specifically listed, is included in endorsement form to homeowner/rental policies. Jewelry insurance can also be obtained separately, from an insurance firm that specializes in jewelry insurance. For this category of property, insurance appraisal is mandatory because first-hand information about the jewelry is obtained and the insured value, for calculating payable annual premiums, is established. The majority of scheduled property policies in the market do not cater for price appreciation in the jewelry items, meaning that if there is a 70% increase in the jewelry piece in 5 year’s time, the insured value is still what will feature in the appraisal.
Making Sure You Have Adequate Jewelry Insurance
Upon filing a jewelry insurance claim, the settlement process and amounts paid off depend on the particular policy. For those jewelry insurance policies that allow for agreed value settlement, the settlement value is stated in the policy document, while for those that allow for replacement, there is the replacement of the jewelry item in kind or by way of cash.
What is the meaning of “enough” jewelry insurance? The answer is pegged on the kind of policy, the insured value of the item, the settlement process for policy and the degree of information disclosure in the appraisal form. It’s advisable to take up the scheduled coverage policy for items valued at more than 1500 dollars, as opposed to unscheduled coverage policy.
The most important aspect in scheduled property coverage, as far as jewelry insurance is concerned is the information supplied in the appraisal form:
• If the information is not specific, that is, it’s broad, general and gives room for speculation, the insurance firm has the lee way to replace the item with they feel satisfies the description given in the document. For jewelry insurance, it’s extremely important to include an accurate and detailed write-up on the item.
• If the insured value on the appraisal form is too low, the insurance firm has the lee way to make cash settlements that do not meet the current market replacement cost of the jewelry piece. It’s absolutely important to revise the appraisal with the jewelry insurance firm after a specific period of time, say five years, so as to avoid instances of under insurance.