The Insurance Company is required to replace all items in "LIKE AND KIND" or REPLACEMENT VALUE” no excuses no deviations of quality or size regardless of current market prices. Remember that “sentimental value” does not apply. Remember also that Insurance Companies require documentation of all jewelry items via current jewelry appraisals.
Another important area is "coverage or insured amount".
If your ring was insured for $7,000.00, and the insurance company can have it replaced for $6,000, you have the option to have their jeweler replace your ring - or you could choose to have your own jeweler replace your ring. If you choose to have your jeweler replace the ring, the insurance company would pay you out, also known as cash-out on the actual value (in this case you would receive $6,000), less your deductible, if applicable.
Jewelry insurance tips
… get your jewelry cleaned and inspected regularly. Its better to discover that loose stone or worn prong prior to losing that precious stone.
… jewelry values increase with time and regular inspections provide the perfect opportunity to maintain adequate insurance.
… get your jewelry insured immediately after purchase since your insurance rider must be purchased and in force at time of purchase for your jewelry to be protected.
… remember that if your jewelry is lost or stolen, the insurance coverage will only help replace your treasure with something of 'COMPARABLE' value.
… if you have a pair of earrings, or any item of jewelry that comes in a pair insure that all pairs are replaced in the event of theft, or damage to just one of the pieces.
… if you do have to file a claim the Insurance company may take a 'premium' from you which they would DEDUCT from the final payout.
… for loss, theft or damage of jewelry during vacations abroad be sure to file a police report and keep a copy.
… if your jewelry is antique jewelry, which would be difficult to replace, the jewelry appraisal certificate would provide all the details and it would be based on the replacement value. You would receive a cash settlement.
... have your jewelry appraisal and corresponding insurance updated at least every 2 years to protect your investment and take advantage of any value appreciation.
What will jewelry insurance typically cost?
As a general rule of thumb you will have to pay in the vicinity of 1.5%-3.5% of the insured replacement value of the item for it to be covered comprehensively. The percentage is determined by your state of residence and by the policy you take out. Beware though, Insurance Companies love to collect high premiums based on inflated "Replacement Values"; on the other hand, they require any payouts to be fully documented and can choose to press the client to accept a lower payout if their jewelry documentation is not completely in order.
... Elisa J. Propst, GG
*Please note, this is a very GENERAL OVERVIEW of personal jewelry insurance, and may not apply to your own specific insurer. I strongly recommend that you contact your individual agent to determine your insurance company's specific policies and your current coverage on your jewelry.