Valentine’s Day is a time when Americans shower their loved ones with gifts, and jewelry is a popular choice. In fact, the National Retail Federation estimates that spending for this romantic holiday will reach a record-breaking $14.2 billion this year, with 22% of shoppers planning to purchase jewelry. However, many people overlook the importance of insuring their precious baubles.
Financial experts warn that individuals often fail to consider coverage for their rings, bracelets, brooches, and other jewelry pieces. They may be unaware that their homeowner or renter insurance policies typically have limitations on jewelry coverage. While jewelry insurance may not always be necessary, it can provide peace of mind if one is willing to pay the price. Here are some key pointers to guide you through the process of insuring your Valentine’s Day jewelry purchase.
First and foremost, it is crucial to take stock of what you already own. It is not uncommon for individuals to put their jewelry away in a drawer and forget about it. To avoid this, experts recommend conducting a thorough inventory. One simple way to do this is by taking photographs of your items, along with any receipts, appraisals, or certifications. Jewelers Mutual, an insurance company specializing in valuable items, suggests using a spreadsheet or home inventory software to keep track of your jewelry.
Appraisals are another essential aspect of insuring your jewelry. Without an appraisal, you will not know the value of your pieces and may not receive the full amount from your insurance company in case of a claim. InsuranceQuotes.com senior writer and analyst Michael Giusti emphasizes that if a piece is worth insuring, it is worth appraising.
Before making any decisions, it is wise to explore your options and shop around for the best coverage. While checking your homeowner or renter insurance policy for existing coverage is a good starting point, it is important to note that these policies often have limitations and deductibles. You will likely need to choose between adding “floater” or “rider” coverage to your homeowner insurance or purchasing separate jewelry insurance. Comparing options is crucial, but be prepared to allocate a portion of your budget for this purpose. Giusti estimates that annual jewelry coverage typically amounts to 1% to 3% of the item’s value.
When selecting an insurance policy, it is crucial to understand what is covered. Policies differ in terms of coverage for theft, damage, accidents, and even “mysterious disappearance.” This term may seem misleading, but it refers to situations where the item is known but cannot be retrieved, such as a ring lost while swimming in a lake. Giusti advises filing a police report before making an insurance claim, even if the loss seems mysterious. This documentation strengthens the claim and increases the likelihood of a successful outcome.
While some protection may be available through credit card purchases, it is still worth considering additional insurance options. Credit cards may offer coverage against theft or damage for a limited period. However, gifting a ring shortly after purchase may provide enough protection for some individuals. For those who do not plan on wearing their jewelry regularly, a safe-deposit box is an excellent storage option. It is important to note that the Federal Deposit Insurance Corporation does not cover items in safe-deposit boxes. Alternatively, a home safe can also provide protection from loss.
Insuring your Valentine’s Day jewelry purchase is crucial to safeguarding your investment and ensuring peace of mind. Taking inventory, obtaining appraisals, comparing options, understanding coverage, and considering additional protection measures are all vital steps in this process. By following these guidelines, you can enjoy your beautiful jewelry with confidence, knowing that it is protected against unforeseen circumstances.
