Having a lot of jewelry at home can indeed be a cause of concern. It is their safe upkeep that is your first and foremost concern. You are concerned about what if you misplace an item, what if they are lost, what if they are robbed or damaged, and things like that.
These days, most insurance companies don’t provide jewelry insurance separately these days; rather, they provide it as a combined product of house insurance that you can avail as a rider.
For instance, let’s take up the homeowners insurance in a bit more detail. The house owner insurance gives you protection against natural calamities such as fire, flood lightning, or manmade instances such as theft and damage insurance to most of your in-house items.
These can include the gadgets in your home such as your air conditioners, TVs, music systems, refrigerators, coolers, etc., and some costly items such as art pieces, watches, costly exotic furs, carpets, instruments, etc.
How can you avail of this insurance?
Various insurance companies allow the jewelry insurance to be covered as a part of the house insurance and can be availed as a rider.
What is a rider in the case of jewelry insurance?
A rider is an added advantage in your existing policy that offers more coverage or added coverage for a much lower premium. You can consider this as an extra feature in your policy.
The benefit is that you can get all your jewelry items covered at a cost value or limit coverage.
How is a rider provided for jewelry items?
There are generally two modes.
One is the exact dollar coverage, and the other is the limit coverage. We will explain both the terms related to jewelry insurance here.
All the jewelry items you want to get covered for are listed with the exact dollar coverage. Then their value is calculated as per existing prices of gold, silver, diamond, platinum, etc., whichever metal or stone has been used for making the jewelry item. With this, you can get a complete cover. But the problem is most house insurance that gives jewelry insurance items as a rider provides the limit coverage plan.
Here the disadvantage is that you can choose a maximum capping for insuring all your jewelry items at home. In the case of theft of all your jewelry items, only the capped amount you have taken as rider coverage will be reimbursed and not the entire amount.
This can be significantly inadequate for those who hold a lot of costly jewelry items at their home.
What do you need to know when choosing a jewelry insurance plan?
See, you have to know many things when you are availing this insurance policy.
How are the claims processed?
Here you need to check out what happens when suppose your jewelry item has been lost. How is the reimbursement done? Do you have to lodge a police complaint in a robbery case?
What is the amount of reimbursement?
Will you be given the full proceeds of your rider amount, or will you be compensated only by the value of the items lost?
Will the current market prices and the fluctuations in prices be adjusted during the claims process?
Most jewelry items and has a market rate that keeps fluctuating with the ongoing global prices. For example, gold. Gold prices keep on fluctuating based on global supply and demand cycles. Will, the current market price of gold, be used for jewelry insurance claim settlement, or any predetermined amount will be used?
Keeping your jewelries insured will give you a peace of mind. Many insurance providers offer this service, so make sure that you check out the different options before making the final call.
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