Jewelry Insurance Guide: What It Is And Why You Need It

engagement ring insuranceYou’ve been together for a couple of years now and he’s finally popped the question, and while asking you to marry him, he also presented you with a diamond engagement ring, fitted with a two-carat diamond and a beautiful platinum setting. After saying yes, he placed the ring on your finger and you start planning your life together. This scenario refers to a fairytale come true for many people. Getting engaged is exciting and the start of a new journey, but, at the same time, there are a lot of things that need to be considered and taken into account during such a time in a person’s life. Unfortunately, some of the smaller things are most often overlooked. One particular thing that people often overlook when they get engaged is the fact that the precious ring that was placed on their finger during the engagement is worth thousands of dollars – and if it is lost, damaged or stolen, they would be at a loss.

An engagement ring isn’t the only type of expensive jewelry that may lead to thousands of dollars in lost money should it be damaged, stolen or lost. Earrings fitted with diamonds, a necklace fitted with an expensive ruby gemstone or a wristband with diamond accents are also excellent examples of expensive jewelry that you would certainly not want to lose. When something does happen to this jewelry, you will lose a lot of money – but there is a way to help you recover from the event faster and without losing too much on your side. We are referring to jewelry insurance – a type of insurance that is not as popular as some of the other types of insurance, such as vehicle insurance, household insurance and life insurance, yet this type of insurance can help you get back the value of your lost or damaged expensive jewelry.

What Is Jewelry Insurance

Jewelry insurance is quite simple, since the name of this service explains it all. Yes, as the name suggests, jewelry insurance is a type of insurance that you can take out to protect your precious and expensive jewelry pieces against theft, damage and, of course, losing it. Since jewelry tends to be quite expensive, people often do not bother with personal jewelry insurance since they think it might cause an expense that they simply cannot fit into their monthly budget. In reality, the contrary is true – jewelry insurance is much more affordable than most people think it is.

How Much Does Jewelry Insurance Cost?

Jewelry insurance is often much more affordable than other types of insurance, such as life insurance and medical cover. According to Jewelers Mutual, best jewelry insurance tends to cost approximately one to two percent of the jewelry’s value per year. This rate, of course, depends on where in the world you stay – this is the most common cost of jewelry insurance within the United States, but most countries also share a similar calculation when determining the cost of jewelry insurance.

To better understand how this calculation works, let’s look at an example. If you have an engagement ring that is worth $10,000, then you may be jewelry insurance quotes between one and two percent of this value, which will be paid over the course of every year. In this case, you will be paying between $100 and $200 each year to have your engagement ring insurance; thus protecting it against any potential issues. In most cases, the insurance premium is paid in a monthly installment, which means for an engagement ring that is worth $10,000, you will pay between $8 and $17 per month on average.

Why Do You Need It?

The reason why you need to take out insurance on your expensive is quite obvious – you do not want to lose the money that was spent on that piece of jewelry should it be lost, stolen or should it incur damage. There are different types of jewelers mutual insurance and you can usually specify against what you would like to insure the jewelry. Generally, the top jewelry insurance companies will offer you protection against losing the jewelry and it being stolen. There are also many insurance providers that will protect your jewelry against damage – this means that, should it incur damage, you may take the piece of jewelry to a jeweler near you and ask for the jewelry to be fixed. The insurance you have taken out would then cover the cost of the repair.

If you need more convincing, let’s take a closer look at how jewelry insurance estimate can help you and why you should consider this type of insurance coverage. We are going to use the same example from above – a $10,000 engagement ring and an annual cost of $100 to $200 for insuring the engagement ring. Let’s assume $200 in this case. After a period of five years, your engagement ring is stolen. Your $10,000 piece of jewelry is now gone, but you still have insurance that can help you get a new one. At this time, you could claim a $10,000 amount from the insurance company to buy a new ring – if you didn’t have insurance, you would have to pull that $10,000 out of your own wallet. Now, when it comes to cost, by the five-year interval, you would have only paid $1,000 for the insurance – saving you as much as $9,000 when it comes to buying a new engagement ring – plus there is the benefit of being allowed to pay monthly installments instead of having to pay large once-off fees.

Tips For Taking Out This Type of Gem Insurance

couple in jewelry storeFinally, we should take a look at some essential tips that you need to consider when you are in the process of taking out jewelry insurance on our engagement ring, pair of diamond earrings or even on your entire expensive jewelry collection. Firstly, it is important to note that, even while there are general guidelines available to help you determine the pricing for jewelry insurance, it is still important to retrieve multiple quotes before choosing a company to opt for. Some companies will be cheaper than others, but you also need to consider the terms and conditions that each outlines. The cheaper companies may not protect against accidental loss and damage, for example, while paying a few dollars more a month can offer you these essential benefits as well.

If you speak to a jeweler, a lot of them will recommend that people also ask a series of questions to each company they request a quotation from. This will help the person identify the more trustworthy companies and also determine which company can offer them the particular features they find most attractive. Here is a quick look at some of the most vital questions to ask before deciding which insurer to sign up with:

  • Whether or not an appraisal for the piece of jewelry would be necessary before the insurance policy can become active.
  • What risks are covered by the particular policy, and whether damage and accidental loss would be covered as well.
  • Would the insurance pay out when the jewelry is damaged, lost or stolen while the piece of jewelry is not in your possession at the time of occurance.
  • Are there any specific retailers that needs to be contacted for a replacement piece of jewelry in case of a claim, or can you choose any of the local retailers in your area.
  • How does the claim process work and what is needed to submit a valid claim.
  • Are there any exclusions that you should be aware of. also recommends signing up for jewelry insurance as soon as possible – within the days following the possession of the piece of jewelry. It may seem like something insignificant, but anything can happen even just a day after you purchased the jewelry or received it as a gift. Ensuring that the jewelry is covered ensures that you can wear the engagement ring, necklace, pair of earrings or other piece of jewelry with confidence, knowing that in the event of damage, theft or loss, you will be able to obtain another similar item without having to pay the full cash price again.


Jewelry is precious, especially the ones fitted with expensive gemstones, such as a diamond engagement ring or a piece of ruby earrings. When these jewelry pieces are lost or stolen, or even damaged in some cases, it can cause alarm as this means you have lost a lot of money – as well as the precious memories and value they have added to your life. While the memories and value that a piece of jewelry could not be replaced in many cases, jewelry insurance can help you gain back the lost money; thus allowing you to replace the piece of jewelry that you lost with another similar. Jewelry insurance is a particular kind of insurance that is affordable and very useful, yet people tend to ignore the fact that their jewelry also form a significant importance in their life – to the extend where they would have to reach deep into their wallets if they are to replace it without the use of such insurance cover.