Valentine’s Day accounts for a large percentage of jewelry purchases, yet many consumers don’t know enough about protecting these valuables against costly losses, says Joe Ronco, account executive at in Bethlehem.
Much of this jewelry— particularly diamond engagement rings — will be excluded from full coverage under standard home and renter's insurance policies.
“Most policies provide as little as $1,000 for loss by theft, and you will have to pay a deductible on top of that, leaving you with virtually nothing,” says Ronco. “Worse yet, if your ring simply disappears or if you lose the stone, most homeowners’ and renters’ policies provide little or no protection at all.”
The average engagement ring value in the U.S. is $2,000, according to the most recent statistics from the Diamond Registry. However, for brides over the age of 25, that average climbs to about $3,000.
Consumers can purchase a policy add-on called a “floater” to insure fine jewelry against theft and damage. Annually, this coverage should cost about $5 to $10 per $1,000 in value.
Personal jewelry policies, which require an appraisal, offer the most complete coverage for cherished valuables, Ronco advises.
Here are more tips:
- Fewer than 20 percent of jewelry stores have a properly credentialed gemologist on the premises. Shop around.
- Some insurance companies require that jewelry be stored in a safety deposit box while the owner is traveling or not wearing the item.
- Insurance companies report that most jewelry claims result from theft in the home by friends, family and service workers.
- Jewelry should be re-appraised when upgrading or adding additional stones.