Last week, lovers all over the world celebrated their relationship — and some couples toasted with champagne and an engagement ring. Adulthood encourages us to take things a bit more seriously and think about the future with more responsibility. In particular, that fabulous ring for which you paid a leg and an arm, better be insured.
“Insurance might not be the most romantic thing to think about on Valentine’s Day, but taking time to evaluate and update your insurance coverage can help get your relationship off to the right start,” said Chris Hackett, Property Casualty Insurers Association, director of personal lines. “Insurers want to help you make the best insurance coverage choices, so it’s important to contact your agent or company to talk through options as you plan for your future.”
If you’re not sure where to start, here are a few tips:
- Appraisal and jewelry coverage—if you’re already have a homeowner or renter’s insurance policy, know that these cover up to $1,500 if jewelry is lost or stolen, and blanket coverage runs between $2,500 and $10,000. For more valuable pieces, consider a special add-on to your current policy or even a separate policy. You should also look into other policy details, such as exclusions and ask is accidental loss is covered and if so, what is required to prove loss. Also, get a written appraisal of jewelry at the time of purchase. For the high-end heirlooms and more valuable pieces of jewelry, consider having them professionally appraised. Costs vary for this kind of process and the variables are many: time and research involved, where you live, the piece itself; it is safe to estimate somewhere around $50 – $200 per piece.
- Replacement and repair options—figure out what do you consider a proper replacement to be—is the cash value replacement acceptable or are there specific pieces you want to have replaced by as close of a duplicate as possible? The policy might also direct you to a specific jeweler, or allow you to choose your own. In addition, verify if appreciation is included and what is the course of action in case appraisal costs don’t cover your desired duplication.
- Alternatives—if your insurance company doesn’t offer the kind of coverage you need through an addition to your existing policy or a comprehensive replacement, either consider a different insurer or a separate policy for your jewelry. There are also insurers specialized in jewelry coverage. They usually work with jewelry stores and offer coverage to their customers, or offer independent individual jewelry coverage. This type of coverage is typically more expensive, but gives you greater control over the replacement.