Should I Have Jewelry, Coins and Watches Appraised for Insurance?

 

(A Three Part Series)

 There is a special feeling when one receives a new piece of jewelry, obtains a rare coin, or becomes the proud possessor of a luxurious watch.  The beauty, the sparkle, and the euphoric feeling you get can be magical.  The last thing we think about is what could happen to it.  Jewelry, rare coins and watches are often delicate, relatively small, and can be easily damaged, lost or stolen.  That’s why we insure these precious items to make sure if something happens we can have them repaired or replaced.  When we call our insurance agent to discuss insuring these items we are informed they need to be appraised by a certified appraiser to determine their replacement value before the insurance company will insure it.  Appraisals cost money and take time, so when is it worth having these items appraised?

 

 What Items Should I Have Appraised for Insurance?

Insure any jewelry, coins or watches that are valuable to you.  “Valuable” can be in dollars and cents.  It can also mean emotional value.  Emotionally valuable items can be wedding rings, sentimental items, family heirlooms, and custom-made “one of a kind” pieces.  Properly insured you can have them repaired or replaced if something happens to them.

Another way to consider what pieces to insure is to consider how much money it would take to replace it?  If lost, stolen or damaged could you easily replace or repair it with out-of-pocket money?  A $150 pendant purchased from a department store is often easier to replace or repair than a $10,000 custom piece of jewelry or gold watch purchased from a jewelry store. 

Knowing how much personal property insurance coverage you have under your standard (or blanket) policy is a good starting point.  Homeowners and renters insurance policies usually include coverage for household and personal items including jewelry.  Generally, most policies limit the dollar amount for theft of valuable personal possessions such as jewelry, watches, coins, and silver flatware.  The maximum amount of coverage for these items is commonly $500 to $2,000 per item, with a $5,000 to $10,000 maximum per occurrence*.

 

With today’s average price of a diamond engagement ring around $5,000, most blanket insurance policies do not cover the full value of the ring.  Some blanket insurance policies do not provide insurance coverage if it is lost or stolen, so you may need additional coverage to insure the full cost should you ever need to replace the ring.*  This is called scheduling the property. Insurance companies often refer these additional policies as “Riders” or “Floaters”.  For high dollar valued items such as diamond rings, rare coins, luxury watches and sterling flatware, the item is on a “schedule” and separately insured – not covered under the general personal property limits.

Insurance companies usually require highly valued items to be appraised to make sure the items are being insured at their correct replacement value.  But not all appraisals or appraisers are equal.  The personal property appraisal field is an unregulated industry.  Anybody can be a jewelry, coin or watch appraiser with absolutely no credentials or appraisal expertise.  Often the store you purchased the jewelry, watch or coin from will provide you with a “free appraisal”.  But is it any good?  Does it really protect you?  

In part two of this series, we will discuss what credentials to look for in a jewelry, diamond, coin or watch appraiser.

 

 

*Insurance coverage differs from one insurance company to another, and most insurance companies offer multiple policy plans.  We recommend you check with your insurance agent to determine the amount of coverage you have with your current insurance policy.