Most people secure insurance for their jewelry through their homeowner’s or renter’s policy and often there is some coverage already provided within that policy. There are also companies that provide insurance for your jewelry independently of your homeowner’s policy; Jeweler’s Mutual and Gem Shield are two that come to mind.

The positive aspect about using an independent company is that should you need to make a claim, it doesn’t go against your homeowner’s policy whose primary purpose is to cover you in the case of a catastrophic loss, such as the total loss of the entire home.

Where ever you get your insurance, it is important to ask the following questions:

1.) What is the difference between unscheduled and scheduled coverage?
2.) Is my coverage all risk (includes loss, theft, damage, mysterious disappearance)?
3.) Am I still covered if there is negligence or carelessness involved?
4.) Do I need to take any security precautions (item being kept in a safe or safety deposit box when not worn)? Is there a premium savings if I take them?
5.) Are there geographical limits to my coverage?
6.) If the item (or only part of it) is lost, stolen, or damaged while in the possession of someone else, am I still covered?
7.) Are there any exclusions? What types of property are not covered?
8.) What proof do I need to justify a claim?
9.) Is there a deductible? If so, how much? Do I have the option of no deductible? Do I have the option to lower my premium if I increase the deductible?
10.) Is depreciation ever imposed? If so, to what and how is it computed?
11.) If there is damage, am I limited to repair or can it be replaced?
12.) What if the lost or damaged piece is irreplaceable, like a period or one-of-a-kind piece?
13.) What is the pair and set clause? Will the insurance cover an additional amount for matching a missing item in a set or pair if it hasn’t been computed and stated?
14.) Am I limited to the appraised replacement cost should there be a sizeable increase in value?
15.) Will you show me the actual language in my policy which addresses each concern and/or adjust my policy in writing to accommodate each of these concerns?
16.) Will you keep a copy of my appraisal report and remind me at least every two years to get updates?
17.) Do you give a cash payout? If not, can I go to whoever I wish for a claim assessment and/ or replacement? What criteria does your company use to qualify your replacement sources?

If the loss has to be replaced through an insurance company source, insist that you be allowed to verify proper indemnification by a qualified Graduate Gemologist and trained jewelry appraiser of your choice. Ask for a clause to be included that if the replacement is not true indemnification, then the company will reimburse you for the expense of having the appraisal done in addition to getting a proper replacement.