What do you mean by jewellery?
Jewellery can mean any number of things from loose gemstones, rings, necklaces, earrings, or watches. Definitions may vary slightly between insurers.
Why do I need special High Value Jewellery Insurance?
To put it simply, you need jewellery insurance because your regular home, contents or building insurance policy does not offer enough coverage for your jewellery – especially if they’re very valuable.
Certain terms and conditions are good enough to insure most items, but they do not capture the unique insurance requirements for high value jewellery.
What does my home, contents or building insurance cover?
Most property insurance policies will offer some cover for jewellery. But as with most things in insurance, the devil is in the details.
Most insurance policies have mandatory limits on jewellery that may be less than the value of your jewellery collection.
They also calculate the amount of compensation based on Actual Cash Value (aka. the purchase price of the item with depreciation applied) or Replacement Cost(the cost to repair or replace the damaged item). If you have or know about jewellery, you can spot the problem right away. Some unique pieces are one-of-a-kind and irreplaceable and some pieces of jewellery appreciate over time. Applying depreciation or calculating its value based on purchase price is not appropriate and does not capture its true value.
And as we’ll discuss below, some of the terms and conditions don’t take into account the unique characteristics of high value jewellery.
What does High Value Jewellery Insurance cover?
It varies between each insurance company but the covers provided by your regular insurance and specialized jewellery insurance differ in 2 important ways:
A specialized jewellery policy will allow you to schedule individual items or sets of jewellery onto the policy and insures them at appraised value. This ensures you get full coverage for what the jewellery is actually worth in the market place. The appraisal will determine a fair market value for the item by taking into account the rarity, uniqueness, artistry, history, and other factors.
Pair & Set Rule
In most property insurance policies, there is something called the pair and set rule. This rule means that the insurance company will only pay for the item in the pair or set that was lost. For example, if you lose 1 shoe or 1 earring out of a pair, the insurance company will only pay for that 1 shoe or earring that was lost.
As you can imagine, this simple rule creates huge limitations when it comes to jewellery. In practical terms, 1 earring is nearly worthless without the other and replacing one gem in a necklace doesn’t always work because the colors may not match.
Specialized High Value Jewellery Insurance will replace the entire pair or set – as long as you agree to surrender the original items to the insurer.
What else do I need to know?
If you collect jewellery, most insurers will offer discounts for items not being worn and are stored in a safe or a deposit box.
How can I get insurance for my high value jewellery?
Get in touch with us to make sure that your jewellery is properly insured, valued and documented.
The insurance advisors at Trusted Union offer comprehensive insurance solutions for your high value jewellery without the mandatory limits, with global coverage and with terms and conditions that take into consideration the unique characteristics of high value pieces of jewellery.