The Jewelry Box Blog

5 Jewelry Insurance Myths, Busted

on Dec 15, 2020 9:30 AM
Jewelry Insurance Myths

Jewelry insurance is often forgotten and when it is thought of, it’s often misunderstood. We’re debunking five of the biggest myths around jewelry insurance.

Jewelry Insurance Myths

Myth #1: I don’t need jewelry insurance. 

Ask yourself, if my jewelry disappeared today, would I be… 

  • Devastated about the sentimental loss? 
  • Unable to cover the cost to replace it? 
  • Afraid to wear my other uninsured jewelry? 
  • Subjected to coverage limits with my current insurance? 

If you answered yes to any of these questions, you may need jewelry insurance more than you think. 

Myth #2: Jewelry insurance is expensive. 

Rates are based on several factors, including where you live. But for most people, jewelry insurance will cost 1-2% of the value of their jewelry. For example, a $5,000 engagement ring could cost as little as $50 per year to insure. 

Myth #3: My homeowners or renters insurance can cover my engagement ring and other jewelry. 

In most cases, your homeowners or renters policy is a “named perils” policy, which means a loss isn’t covered unless it was listed specifically in your policy booklet and even then, the amount of coverage offered may be less than the value of the jewelry you possess. 
In addition, a jewelry claim filed on your homeowners policy could affect your entire policy. This means if your jewelry was ever stolen, lost or damaged and you had to file a claim, your premium could go up or your eligibility for your entire homeowners policy could be affected at renewal. A standalone jewelry insurance policy keeps your small, easily misplaced valuables separate from your home and the rest of your belongings.

Myth #4:  In the event of a claim, I’ll get a check to cover the cost for replacement or repair.

Many traditional insurance policies simply reimburse you for the cost to repair or replace your lost or damaged jewelry. With a repair or replacement policy, like with Jewelers Mutual Group, you’re not on your own. If you do have a claim with Jewelers Mutual, you choose the jeweler to help repair or replace your jewelry. Our jewelry claim professionals will collaborate with your jeweler to make sure your piece is repaired to your satisfaction or replaced with a piece that’s of the same kind and quality as the original. 

Myth #5: I don’t need a current appraisal for my jewelry.

jewelry appraisal assigns value to your entire piece, taking into account the setting and any stones. An appraisal is used to set the coverage limit on your policy. If your jewelry’s value was over-inflated, you could spend more than necessary to insure your piece. Or, the reverse could mean you’re under-insured and may incur additional out-of-pocket expense to repair or replace your jewelry. Precious metals and gemstones can fluctuate in price, which is another reason to have your jewelry re-appraised. Insuring your jewelry for its current retail replacement value is vital should you have a claim. Jewelers Mutual recommends getting an updated appraisal every two years.  

Any questions we may have missed? Give us a call at 888-884-2424. 

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