Should you have Jewellery Insurance?
Many have spent a fortune on their engagement rings. And although private home insurance covers loss of jewellery, these claims are usually limited to a fraction of the cost of the jewellery. There are various considerations as to whether or not to insure your wedding ring, and also factors in deciding on a jewellery insurance in the market.
Jewellery insurance is usually included with house and content insurance. However, this coverage is basic and will only make a nominal pay out, well below the value of your ring in the event of loss. Sometimes, anything other than theft would not be covered. Additional coverage up to the cost of the jewellery may require additional riders, or supplementary policies.
A better choice would be to seek out insurers that specialise in covering jewellery, which varies in coverage, deductibles and need for appraisals. It might also be wise to separate insurance policies for home and content from jewellery, as a claim in jewellery would not result in a spike in premium on your house.
It is estimated that the average cost of premiums is a function of the risk involved and the value of the jewellery being insured. A neighbourhood with a higher risk of theft and break-ins would warrant a higher premium. On average, the annual premium is usually in the range of one to two percent of the value of the jewellery.
Well, the correct answer will be “it depends”. Does the sentimental value of the jewellery outweigh the monetary value of the jewellery? Is the jewellery a rare piece that would likely appreciate in value? As a rule of thumb, the lower cost a piece of jewellery, the less likely that you would need to insure, as it could very likely be replaceable.