Is jewelry insurance worth having?

It often holds more than just sentimental value

Is jewelry insurance worth having?

Insurance News

By Mark Rosanes

Certain pieces of jewelry hold more than just sentimental value. Engagement rings, wedding bands, and family heirlooms such as a sapphire necklace passed down through generations can also be expensive assets that, when lost, are often difficult to replace. For those who own these types of fine jewelry, taking out some form of protection is essential. This is where jewelry insurance comes into play.

How does jewelry insurance work?

Jewelry insurance works just like other types of coverages – it provides jewelry owners financial protection in the event their precious personal adornments are lost, stolen, or damaged. Most insurance companies, however, do not offer stand-alone policies for jewelry, often providing limited coverage in the form of a rider. For more comprehensive protection, jewelry owners can purchase policies from specialists.

Jewelry insurance can be obtained in three ways, according to Insurance Information Institute (III). These are:

1. Through a person’s homeowners insurance policy

A standard homeowners policy provides coverage for jewelry lost or damaged due to fire, theft, and vandalism. To keep premiums affordable, insurers typically impose a $1,500 limit. According to the III, the limits are a bit low “because jewelry can be easily stolen.” This value can often be raised if the policyholder agrees to pay extra, although the maximum adjusted limit – $2,500 per piece and $5,000 overall – may still not be sufficient to cover expensive jewelry.   

2. By purchasing a floater policy

Although costing more than just raising coverage limits, supplementing a standard homeowners’ policy with a personal articles floater can provide jewelry owners better protection. According to the III, floaters offer coverage that home insurance typically does not such as those resulting from accidents, including “dropping your ring down the kitchen sink drain or leaving an expensive watch in a hotel room.”

There are still exclusions, however, like jewelry damaged by flooding. Policyholders must also have their jewelry appraised by a professional before purchasing a floater.

3. By taking out a stand-alone policy

Jewelry owners can purchase a stand-alone policy from specialists, who can provide more comprehensive coverage. According to the III, most stand-alone policies and floaters offer similar protection, including against theft, accidental loss, mysterious disappearance, loss of part of a set, and loss during international trips. A deductible also does not typically apply to both. 

However, the institute added that a specialized jewelry policy covers certain events that a floater policy does not such as “a chipped stone in a ring or a broken clasp on a necklace.”

How much does jewelry insurance cost?

There are several factors that impact the premium prices of jewelry insurance. If purchased as an add-on, coverage will push up the cost of a homeowners or renters policy, depending on the level of protection.

If bought from a specialist, coverage costs between 1% and 2% of the jewelry’s value. This means a $5,000 engagement ring can cost anywhere from $50 to $100 to insure per year.

One drawback of taking out jewelry coverage under one’s home insurance is that any claims filed could have an impact on the entire policy. Claims for lost or stolen jewelry, for instance, could push up premiums or affect a person’s eligibility for homeowners’ coverage come renewal time.

Is it worth taking out jewelry insurance?

For those who own expensive jewelry, one of the biggest benefits of taking out this type of coverage is the peace of mind that comes in knowing that their valuable pieces are protected against theft and damage. Some specialist insurers also work with jewelers who can create an exact replica of the lost item. Costing 1% to 2% of the jewelry’s value, policies are likewise relatively inexpensive.

Jewelry insurance, however, is not for everyone. For those whose collection’s value does not exceed the amount covered by their home insurance, taking out jewelry coverage is an unnecessary cost. Those who do not have a significant amount of expensive jewelry, meanwhile, may benefit instead from purchasing a rider.

For jewelry owners considering getting this type of coverage, it is advisable to have their valuable jewelry appraised and to speak first with an experienced insurance agent. 

Which insurance companies offer specialized coverage for jewelry?

While many insurance companies in the US offer policies for jewelry protection, there are specialists that provide coverage tailored specifically for these high-value items. The table below shows some of them. All details are up to date as of May 2022.


Policy name

Key coverage features


Fine Jewelry Insurance

  • Zero out of pocket expenses
  • Up to 125% coverage of appraised value to replace fine jewelry
  • Worldwide coverage
  • Fast and simple online insurance claims process
  • Complimentary maintenance repairs, including stone tightening, clasp replacement, restringing of broken or stretched pearl strands, and prong retipping


Jewelry Insurance

  • All-risk policy that covers loss, theft, damage, and mysterious disappearance
  • Repair and replacement coverage
  • Worldwide coverage while traveling
  • Coverage for newly purchased jewelry
  • Premiums typically 1% to 2% of jewelry value
  • Up to $50,000 flexible coverage
  • $0 to $1,000 flexible deductible
  • Work with your jeweler

Jewelers Mutual

Personal Jewelry Insurance

  • Covers loss, theft, damage, mysterious disappearance,
  • Covers loss and damage caused by flood and earthquake
  • Worldwide coverage
  • Zero deductible option
  • Work with your jeweler


Jewelry Insurance

  • Covers loss, theft, damage, including those resulting from earthquake and flood
  • Covers gifts to others
  • Worldwide coverage
  • Up to $50,000 flexible coverage
  • $0 to $25,000 flexible deductible
  • Work with your jeweler


Specialty Jewelry Insurance

  • Cover loss, theft, damage, and disappearance
  • Covers natural disasters
  • Worldwide coverage
  • $0 deductible
  • Zero impact claims

Why would you insure jewelry?

Jewelry must be insured to protect its significant monetary and sentimental value. Jewelry insurance offers proprietors’ peace of mind by protecting them against theft, loss, damage, and other unanticipated calamities.

Jewelry has monetary and sentimental value, and it is usually passed down through generations. Accidents and robberies can result in irreversible losses. Therefore, jewelry insurance is a wise choice for safeguarding valuables.

A homeowner's or renter's insurance policy may provide some coverage for jewelry, but it may not be sufficient to fully compensate for the precious items. The purchase of bespoke jewelry insurance provides complete coverage customized to each item's worth and attributes.

Owners of costly jewelry may rest assured that their valuable pieces are insured against several dangers, such as accidental injuries or losses, with jewelry insurance. In the event of theft or damage, the insurance provider reimburses the owner for the appraised value or replacement cost of the jewelry.

Whether it is an engagement ring, a heritage necklace, or a valuable gemstone, insuring jewelry is a wise investment that protects against potential financial losses. It also ensures that treasured pieces remain a part of the family legacy.

Jewelry insurance also allows owners to enjoy prized things without worrying about potential threats. Individuals who obtain proper coverage can enjoy their jewelry with confidence, knowing that they have taken preventive precautions to protect valuable and sentimental items. In this sense, jewelry insurance is definitely worth having.

Does jewelry insurance cover loss?

Jewelry insurance offers crucial financial protection in case your precious pieces are lost or stolen. With this coverage, you can have peace of mind knowing that you'll be compensated for the appraised value or replacement cost of your jewelry, safeguarding you from complete financial strain in case of theft or loss.

If the unfortunate event of losing your jewelry occurs, you can start the reimbursement process by filing a claim with your insurance company. The value of the missing jewelry will be assessed based on its appraised or current market value, and you'll receive compensation accordingly.

Understanding the terms and conditions of your jewelry insurance policy is vital to know the specific coverage for missing items. Depending on the policy, there might be limits on the maximum coverage for lost jewelry or requirements to report the loss to the police within a certain timeframe.

Having jewelry insurance with loss coverage provides you with the assurance that your valuable possessions are protected. It's advisable to keep records of your jewelry, such as appraisals, receipts, and photographs, as it can simplify the claims process in case of loss.

In summary, jewelry insurance shields you from loss, ensuring that you receive compensation for the value of lost items, enabling you to replace them and continue cherishing your precious jewelry. It's a valuable safety net that lets you enjoy your jewelry with confidence, knowing that you're covered in unforeseen circumstances. Jewelry insurance is worth having, especially as it gives you peace of mind.

What happens if you find a ring after making an insurance claim?

If you happen to find a ring after filing an insurance claim, inform your insurance company immediately. Follow their instructions. Honesty and transparency throughout this process are vital to avoid any potential legal issues.

To prevent double recovery, some insurance companies might ask you to return the settlement amount if the lost ring has been found. It's crucial to comply with this request to ensure fairness and adhere to the terms of your policy.

Keep in mind that the value of the recovered ring could impact on your insurance claim, depending on the policy provisions. In such cases, the insurance company may reevaluate the claim based on the actual value of the recovered item.

Review your insurance policy carefully after filing a claim to understand any specific guidelines related to found items. Some policies may include provisions for this situation, and it's crucial to follow them precisely to avoid potential disputes or complexities.

To sum it up, if you find a ring after filing an insurance claim, open and prompt communication with your insurance company is essential. Follow their guidance, be prepared to return the settlement amount if needed, and be aware of how the ring's value and policy terms might impact your claim.

Staying honest and cooperative throughout the process ensures a smooth resolution and maintains a positive relationship with your insurance provider.

What is the best way to insure jewelry?

The ideal method for insuring jewelry is to purchase specialized jewelry insurance from a reputable insurance company. Insurance for jewelry provides comprehensive protection against theft, loss, and damage, as well as unforeseen events, based on the unique value and characteristics of each item.

Start the process of insuring jewelry by having the pieces appraised by a qualified professional to determine their exact value. This evaluation will serve as the basis for determining the quantity of insurance coverage.

Next, conduct research and comparisons of various insurance policies to locate one that provides the coverage and terms that best meet your needs. Consider policies with broad risk coverage, high coverage limits, and replacement cost protection.

Be sure to read and comprehend the insurance policy's terms and conditions, including any exclusions or coverage limitations. Specific high-value objects may call for additional riders or endorsements for coverage under certain policies.

Include photographs, appraisals, and invoices in your jewelry documentation. These documents will be essential in the event of a claim and will aid in ensuring an efficient and accurate claims procedure.

Consider adding jewelry insurance to your homeowner's or renter's policy. Some insurance providers offer discounts for consolidating policies, resulting in cost savings.

As the value of your jewelry may fluctuate over time, you should consistently review and update your insurance policy. Every few years, reevaluate your jewelry and modify your insurance coverage accordingly to ensure that you are adequately protected.

The best method to insure jewelry is with specialized jewelry insurance that offers customized coverage, accurate appraisals, comprehensive protection, and clear policy terms. Taking these measures will safeguard your valuable jewelry and provide you with peace of mind.

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