Avoid Heartache: Make Jewellery Insurance Your Priority
QUICK FACTS:
12% of Canadian homeowners say they have been the victim of a home burglary.
A home burglary happens every 90 seconds in Canada.
More than 80% of break-ins occur during daylight’ – SGI Canada
As a seasoned jewellery expert with over 40 years experience, I cannot emphasize enough the importance of jewellery insurance. Your jewellery represents more than just financial investments – they often embody priceless sentiments, and losing them can be gut-wrenching. In this guide, we’ll explore the significance of jewellery insurance, common pitfalls when insuring valuables, and tips to avoid these mistakes.
The Significance of Jewellery Insurance
The primary question to address is: Why is insuring your jewellery crucial? Exquisite pieces like engagement rings, heirloom watches, or gold jewellery can be costly, and their loss or damage can result in significant financial setbacks. Most standard homeowners’ insurance policies have caps on compensations for misplaced or damaged jewellery, covering only specific incidents such as theft or fire. Consequently, if your jewellery gets lost or damaged under other circumstances, you might be left uncovered.
Benefits of an All-Risk Insurance Rider
This is where a separate insurance rider that provides all-risk coverage for your high-value jewellery becomes vital. This all-inclusive policy safeguards you against any loss, barring those explicitly excluded in the policy document. It offers more comprehensive protection and ensures peace of mind, irrespective of the circumstances. Plus, an insurance rider typically involves no deductible on a claim—a bonus for the policyholder. The usual cost for such insurance is approximately 1-2% of the appraised value, and while it might not be cheap, the reassurance it provides is worth every penny.
Steps to Insure Your Jewellery
So, where should you begin? Identifying which pieces to insure is the first step. Jewellery items valued above $2000, such as watches, engagement rings, gold jewellery, and family heirlooms, are often chosen for insurance. The next step involves obtaining a gemological appraisal to ascertain your jewellery’s replacement value. It’s crucial to remember that jewellery pricing has experienced dramatic fluctuations in recent years, so a current valuation is vital. This appraisal will support the rider on your homeowner’s policy.
Scenarios Where Additional Coverage is Beneficial
Consider these scenarios where additional coverage proves beneficial. Suppose you’re in an airport restroom, remove your ring to wash your hands, and accidentally leave it behind. Without the right insurance, you risk losing it forever, bearing the burden of replacement cost. Similarly, imagine the diamond in your engagement ring dislodges and gets lost, or the sapphire in your grandmother’s heirloom ring gets chipped. Without adequate insurance, you’re liable for the replacement or repair costs.
Conclusion
In conclusion, jewellery insurance is a wise investment that can spare you significant financial loss and emotional distress. It’s essential to comprehend what your homeowners’ insurance covers and what it doesn’t, and consider an all-risk insurance rider for high-value jewellery. This journey begins with a gemological appraisal to determine your jewellery’s replacement value. At Diamond Design, we offer both appraisal and insurance rider services to ensure your cherished pieces are always secure. Reach out if we can answer any questions.
