Find your soul mate check. Get engaged check. Have your dream wedding and prepare to live happily ever after.check, check. Now what happens if your wedding rings get lost, or worse yet, are stolen? Are you covered? Many couples believe they are already fully covered by their homeowners or renters insurance policy. But are you really covered? Here are five commonly believed myths when it comes to your jewelry being covered by insurance.
Myth #1 " My homeowners or renters insurance policy will pay for my wedding rings regardless of the reason my jewelry has been damaged, or is missing.
Answer: This type of loss is commonly referred to as Mysterious Disappearance. It is defined as the loss of property under unknown or puzzling circumstances which are difficult to explain or understand.
Heads up. A typical homeowners or renters insurance policy does not cover or payout for a claim of Mysterious Disappearance. That means if you cannot say exactly when and where your ring went missing, you can pretty much count on eating it. There are separate insurance policies however, with companies who specialize in jewelry, that will cover your jewelry in the event of the ever dreaded, Mysterious Disappearance.
Myth #2 " Since my wedding rings are personal property, my homeowners or renters insurance will cover my jewelry in the case of theft. Even if it happens outside the home. Or if Im traveling abroad when they are stolen or go missing.
Answer: The answer to that one is a loud and resounding, no. Your homeowners or renters insurance policy is just that. A policy that is designed to cover specific losses within your home. You can always try to turn a claim in. But do not expect to be taken seriously. Why? Because you were not at home when the theft or loss occurred.
In essence, when it comes to relying on your homeowners insurance policy, the moment you were your jewelry out of your home, youre on our own. If its lost stolen or otherwise, its on you. Which is too bad, really. Jewelry wasnt meant to be kept in a vault. It was meant to be shown off a little, or a whole lot for that matter. You shouldnt be afraid to wear it.
So if you wear your wedding rings everywhere, travel, or have a job that frequently takes you out of town, you need to look into a separate jewelry policy, that will cover you for theft or loss outside of the home.
Myth #3 " If my engagement or wedding rings are stolen from my home, my homeowners or renters insurance policy will cover the full value of my jewelry. I really dont need additional jewelry insurance.
Answer: Most homeowners or renters insurance policies have a maximum coverage or $1500 for jewelry. Some policies cover even less. Keep in mind that is total maximum coverage. Not coverage per piece. So if you have a $3000 wedding set, and miscellaneous other pieces of jewelry, like that tennis bracelet or the diamond earrings you received on your last anniversary, plan on eating any amount over $1500. Yikes!
Ultimately, when it comes to your typical homeowners or renters insurance policy, it doesnt matter how much your jewelry is actually worth. Most insurance policies have a set limit of compensation. And the standard limit is $1500. Take it or leave it. How much did you actually pay for your engagement or wedding rings? Not to mention the other precious baubles you have collected and acquired over the years?
If you want to be covered for the full replacement value of your jewelry, you need to consider a separate jewelry insurance policy. You dont have to break the bank to get one either. For example, Perfect Circle Jewelry Insurance offers zero deductible jewelry policies on a $3000 ring, for as little as $32 dollars a year*. You cant even fill your gas tank for that much. But you can protect your jewelry.
Myth #4 " If I need to file a claim on my jewelry, my homeowners or renters insurance policy will allow me to use the jeweler of my choice for repair or replacement.
Answer: Nope. Most insurance companies require you to work with their preferred jeweler, or replacement company. Not yours. That means you may have no other choice but use a jeweler you have never met or bought from before.
When you first bought your wedding rings, didnt you shop around from jeweler to jeweler, until you found the perfect design for you? Then why would settle for your insurance company telling you exactly where youre going to get your new wedding rings from?
Check your existing policy to see just who and where your replacement jewelry will be coming from. Dont assume. If you are not allowed to use the jeweler of your choice, find a policy that will give you the freedom to choose who you want to work on your rings. (By the way, Perfect Circle does allow you to work with your preferred jeweler.)
Myth #5 " I had my jewelry appraised when I first bought them. There is really no need to have them appraised again.
Answer: Yes, there really is. Many jewelry industry organizations recommend updating the appraisal value every 2-3 years. The value of your rings may have actually increased in the time since you bought them. With the rising prices of precious metals and diamonds, you need to make sure you have a current appraisal.
How much would your exact wedding set cost you today, versus the price you paid when you originally bought them? You need an updated appraisal that reflects a current retail value. Dont rely on an outdated appraisal if and when you need to file a claim, you might come up short.
Getting an updated appraisal is easy. Do you ever go in to your jeweler to have your rings cleaned and inspected? This is the perfect opportunity for you to ask them to update your appraisal. However, you may need to schedule an appointment as the appraiser is often booked several days in advance.
Get a Quote
Choose to be compensated for the full replacement value of your engagement or wedding rings. It only takes a moment to get a free quote for a jewelry insurance policy. There are some great insurance companies that we’ve worked with – State Farm, AAA and Perfect Circle, a division of Jewelers Mutual. Call your friendly insurance agent. Its probably more affordable than you think. Most annual premiums cost less than treating yourself to a latte once a week for a month.
Here is a link to get an anonymous quote from a leading jewelry insurance company. Get a quote here: Perfect Circle Jewelry Insurance