If you haven't had a chance to do so, we suggest that you read the article titled: "Jewelry, furs, guns, silver, goldware, fine arts and other expensive stuff" (we know, we really need to shorten the title). If you can't get to it before reading this article, we'll mention that basic homeowner policies typically provide very limited coverage for property such as jewelry. The reason for this is that jewelry is high-valued (especially in relation to its size), easily lost or destroyed and is very vulnerable to theft and fraud.
Whether you already have expensive jewelry
or are about to acquire some; it's important that you have the
type of coverage you want. First ask yourself if you want or need
special coverage. If your jewelry holdings are modest (basically
costume jewelry or just worth a few hundred dollars) perhaps the
limited coverage provided by a basic policy is adequate. However,
when high values are involved, special insurance coverage should
be bought. A few options are available such as buying supplemental
insurance that is attached to your homeowners or tenant's policy
or purchasing a special, separate jewelry policy.
The important step is to discuss the coverage options with an
insurance professional. Discussing the coverage will allow you
to understand how a loss will be paid. Does the coverage consider
values that increase over time? Does it cover mysterious disappearance
(when you know the property is gone, but can't pinpoint when and
how the property was lost) and other causes of loss, or just fire
and theft? Discussing the coverage also helps you understand the
steps you must take to make sure that you keep the maximum coverage
in force and whether the coverage you receive is worth the additional
price.
Answering this question may, initially, be quite simple. If the jewelry has just been purchased, the store receipt or certificate may be the basis of establishing the insured value. However, as time goes by, or if coverage is being rewritten with a different insurer; a new, total insurable value might have to be determined. At this point, it may make sense to get the assistance of an appraiser. Getting an appraisal that affirms your jewelry's current value is an excellent way to assure that your property is properly protected. Of course, it's prudent to be sure that the appraisal is from a competent appraiser. It's your responsibility to find out an appraiser's competency (check their credentials and number of years of experience). It also makes sense to find out how and where the appraisal is to be performed. There are several professional jewelry and appraisal associations that can give you information on appraisers and appraising methods. And, of course, talk to a potential appraiser to see if they know their stuff and how willing they are to explain their work to you. All of these items are important, especially since you have to pay a fee for an appraiser's services.
Once you're certain about the value of your
jewelry and the adequacy of its insurance coverage; you need to
properly handle your jewelry. After all, who wants to actually
file a claim? If you own a significant amount of expensive jewelry
you may want to look into other precautions such as:
Again, your first step is to talk to an insurance professional
since he or she shares your concern that you have the protection
you need at a price you can afford.
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