Jewellery insurance provides financial cover to protect valuables such as necklaces, rings, watches and earrings in the event that they are lost, damaged, stolen or destroyed. Should the need for a claim arise, the insurer then offers to repair or replace the item, or alternatively provide a voucher or cash settlement.
Insuring personal possessions tends to be regarded as a sound decision, both as a financial strategy and as a way to preserve peace of mind. However, all too frequently this crucial step in protecting expensive or meaningful personal items tends to be forgotten until it is too late.
Is Home Insurance Enough?
Policies provided by specialist companies like Centrestone Jewellery Insurance are broadly considered the better option when seeking coverage to insure more valuable items; however home insurance policies are widely still considered to provide adequate coverage for jewellery.
This is especially relevant for engagement ring owners, 40% of whom do not have insurance for their ring despite it being one of their most expensive possessions. Additionally, the average cost of an engagement, wedding or eternity ring ($5000) far outweighs the majority of the average home insurance policy.
Additional Losses
Faced with rising home insurance premiums, the addition of a separate policy for specialty items may seem like an unnecessary expense, yet for victims of home break-ins and theft, uninsured jewellery has the potential to create additional financial loss in addition to loss of personal possessions.
In addition, 2021 and 2022 saw a rise in break-ins for the first time in over 10 years, according to the Australian Bureau of National Statistics, making it even more imperative for jewellery owners to seek specific policies in order to ensure their items are properly covered.
Protection At Home and Away
Smaller valuables such as jewellery tend to be targeted by thieves due to their portability and high value. This is equally relevant when travelling outside of the home, where jewellery items are also more vulnerable to loss in public places, and where home insurance is unlikely to provide coverage in the event an item is lost, damaged or stolen.
This extends to travel abroad, where tourists are at risk from pickpockets targeting them in order to steal valuables which can then be sold for cash. Besides taking practical measures to protect themselves and their property, those intending to travel are generally advised to check that their jewellery insurance is valid for travel abroad, or to consider a portable contents or personal effects policy in addition to their claim.
Insurance Tips
To ensure that jewellery items are fully insured, it is advisable to check that the insurance provider covers the full value and details of the item or items within the policy, and that the sum insured covers the total cost of replacement. Information required for a specialist jewellery insurance quote is likely to include:
- A detailed description of the item in question
- The original monetary value of the item
- Date and location of purchase
- Level of cover required
- Additional details regarding pre-existing flaws such as accidental scratches
Another important step is to have items professionally valued prior to insuring them, as well as taking photographs of their original condition at the time the policy is made. In the event of a claim, this (along with copies of receipts and other relevant paperwork) can help.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
