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Diamonds aren't always forever. Are yours insured?

2015-09-23 14:44:00

More than $1 billion in jewelry listed on a homeowner’s policy is lost every year, according to U.S. Department of Justice. Policies usually provide coverage for theft up to a specific value but not for claims that happen for other reasons.

We recommend that all jewelry that has one or more of the following criteria be listed on your policy for additional coverage:

1.    Worried about losing or damaging an item

2.    Items that are regularly worn 

3.    Value is over $2,000

4.    Rare or unique features not easily replicated

Did you answer yes to one or more bullet points above? If you did, now you need to figure out what type of coverage you want.

 

Types of Additional Coverage for Jewelry

•    Replacement Coverage – the item is added to your policy with an appraisal with a detailed description and value. If it is lost, the insurance company will find an item with the same kind and quality using a jewelry replacement service company. The information to find the piece is based on the appraisal.

•    Agreed Value Coverage - Same process as the replacement coverage except the insurance company sends you a check for the value stated in the policy. Then, you can decide to replace the item, buy a different item or keep the check. This coverage option is more expensive but gives the most flexibility.

 

Questions About the Coverage

Asking your agent questions is the best way to get a firm understanding of the coverage you’re buying:

•    What is the deductible? If so, how much is it and how does raising or lowering the deductible affect your premium?

•    Do you need an appraisal before you can add coverage? Do you have to use a specific appraiser?

•    Are the items covered anywhere in the world? Would you have coverage if you lost something in the US or overseas?

•    Do you have to replace the item, or can you get a cash payment?

•    Does the policy cover repairs to damaged jewelry?

•    How often will I need to provide a new appraisal to keep the value current?

 

The most common claim for jewelry is losing it. This type of claim is only covered if you have insured the item and listed it on the policy with a value. Also, remember that the price of gold and silver changes and it might cost more to replace an item than the value you have listed on the policy. It’s a good idea to get updated appraisals every three years.

Questions about your specific situation or want a quote? Please call our office at 701-237-6414 and ask for Denise, Becky or Jessica. You can also email me at jebeling@warnerandcompany.com.