Since most homeowners policies provide minimal jewelry coverage if your item is stolen, misplaced, or lost, and some policies even exclude coverage for misplacing or losing an item entirely, it is important to list valuable jewelry items separately on your homeowners policy or in some cases on a separate policy. The most important reason to have jewelry appraised is to determine an adequate replacement value in the event of a loss. Over the years, the value of jewelry and gemstones have fluctuated greatly.
Today’s market is proving the value of precious metals and diamonds to be on the rise. If your last appraisal is more than two years old it’s likely out-of-date and, as a result, your jewelry would be insured for less than its current value. That means you risk a financial loss in the event of lost, stolen, or damaged items. Best practice would be having jewelry regularly appraised every two years and notifying your insurance advisor of any changes.
Jewelry has a lot of different types of value. Sentimental value will always be personal, however, fair market value is how an insurance contract is typically written. However, you should make sure your policy is written for agreed value. Agreed value basically means you and the insurance company have “agreed” to the value before a loss so the value listed on your policy is the value you would receive in the event of a claim. While sentimental value can make some things seem irreplaceable, in the event of a claim, it’s critical to know your insurance coverage is accurate and your jewelry can be replaced properly.
