Should You Invest In Jewelry Insurance?

Last Sunday I was sitting in my home office getting some work done on the site. My wife was doing some Sunday chores as she always does (before you say anything, she actually LOVES Sunday cleaning and prefers to do it on her own). She’s jewelryamazing, I know.

As I was typing, I heard my wife utter a word that I’ve only heard come from her mouth one other time in the 14 years that I’ve known her. I immediately jumped up and ran into the kitchen (see, I’m a good husband.) She was leaning over the kitchen sink with her arm almost elbow deep in the drain. I already knew what this meant before she even said anything.

It was the classic ‘engagement ring down the kitchen sink’ that happens to every couple at least once in their lifetime. She had been washing dishes  and the soapy water slipped the ring right off her finger and down the drain.

Thankfully, our good friend Jake, a good friend of mine and the best plumber in Encinitas, made an emergency service run to our place and saved the day. This situation would have been much more nerve wracking, however, if we didn’t have the ring properly insured.

So this brings up the question: Should you purchase insurance for jewelry? 

In my opinion, if the jewelry has a considerable amount of value, whether that be monetary or sentimental, then it without a doubt should be insured. If you lose a piece that has been in your family for generations, of course money won’t replace the sentiment but at least you’ll have something to replace the piece with.

As far as price goes, jewelry insurance is pretty reasonable. It will cost you between 1 and 2 dollars per year for every $100 that the piece is worth. So if a ring is worth $2,000, it will cost you between 20 and 40 dollars per year to insure it.  If you invest in a safe or vault to keep the jewelry in when it isn’t being worn, as well as the appraisal papers, then the cost will be on the lower end of that spectrum.

Tips When Purchasing Insurance for Jewelry

1. Read the fine print. Make sure your policy covers all the possibilities: damage, theft, and, ahem, accidental garbage disposal drops.

2. Ask how much of the value of the jewelry is covered in the plan. Some plans offer full cost replacement, while others only cover partial value.

3. Take note of how you the insurance company would replace the piece. Some companies will simply send you a check, but others will require you to select a replacement at a specified jeweler.

So while jewelry insurance may seem like an unnecessary expense, you’ll be thankful for having it whenever a situation arrises like the one I described above. If you’ve got any specific questions on jewelry insurance feel free to ask me.

Also, shout out to my wife for being a good sport and letting me post the story on here. She’s a great sport. Read more about her on the About page.