Valentine's Day: Benefits of Securing Jewelry Coverage with a Luxury Carrier

With Valentine’s Day right around the corner, what better way to show your love and appreciation for your sweetheart by buying him or her a nice new necklace, watch, diamond earrings, etc.

When making this purchase, there are some things to keep in mind with respect to insuring jewelry. Insurance coverage for jewelry is different for every insurance company. Unless you are insured with one of the insurance carriers in the high end arena, you may be surprised at how little coverage you are provided. These types of insurance carriers can only be accessed through independent brokers such as PRMS.

Here are some major pluses to securing Jewelry coverage with a Luxury Carrier:

Newly Acquired Items – if you already have itemized jewelry covered under your policy, you have coverage for at least 25% of the total value insured as soon as the purchase is made, and you have up to 30 days to add to your policy. So, if calling your broker isn’t the first thing on your mind, no need to worry.

Blanket Jewelry Coverage – If you have purchased Blanket Jewelry coverage, you have coverage for any miscellaneous or newly purchased items that have not been specifically scheduled. Depending on the insurance company and your coverage limits, this could be anywhere between $10k & $50k for one piece. If you have a very large collection, you may be able to purchase a higher per item limit.

Replacement Cost – In the event that new diamond pendant is lost or stolen, a luxury carrier will give you a check for the amount listed on the policy. If you don’t have coverage with a luxury carrier, the standard insurance company may only pay you what they can replace the missing item for.

Pair & Set Coverage – If you lose one part of a pair or set, you are covered for the whole set.

Market Appreciation – Your policy provides Market Appreciation coverage. If that Patek Philippe watch you pick up for hubby becomes more valuable down the road and it is lost or stolen, the company will pay you up to 50% of the amount purchased, up to the limit of the Valuables Policy.

Deductible – There is typically no deductible so in the in event of a claim there is no out of pocket expense to you.

Bank Vault Coverage – If you have an item that is going to be worn only on special occasions and the piece will be kept mainly in a bank vault, the insurance companies provide a deeply discounted rate. There are conditions for this coverage that are important to understand.

As you can see there are many benefits available when you purchase this extra coverage, separate from what is automatically included under your Homeowners policy. If you do not purchase separate coverage, the luxury insurance companies such as Chubb, AIG, PURE and Cincinnati give you broader coverage under their homeowners policies. The coverages above differ by carrier, so best to speak to us about the specifics.

We are happy to provide you with our advice on the best way to protect your precious jewels!

Happy Valentine’s Day!

Written By Dale Krupowicz, Chief Operating Officer, Partner