Jewelry insurance essentials

Losing a cherished piece of jewelry is heart-wrenching — and expensive. Replacing valuable jewelry can cost thousands, whether it's a family heirloom or a precious engagement ring. That's why jewelry insurance exists. 

Jewelry insurance protects your precious pieces from disasters like damage, theft or accidental loss, as well as mysterious disappearances (in certain cases). If the unthinkable happens, your jewelry insurance will reimburse you to repair or replace the insured item. 

Understanding how jewelry insurance works, typical jewelry insurance costs, and what circumstances are covered allows you to properly insure engagement rings, watches, heirloom pieces and your entire collection against life's uncertainties.

Key takeaways

• Standard home insurance will often reimburse only up to $1,500 total for jewelry (not per piece). So, if you own expensive watches, rings, or necklaces, you may be underinsured.

• Jewelry insurance can fill the gap left behind by standard home insurance by providing higher coverage limits for fine jewelry.

• For most people, adding a jewelry floater or rider to your current home insurance is the easiest and cheapest way to insure fine jewelry. 

• Jewelry values can fluctuate, so getting pieces re-appraised two to three years is recommended to maintain enough jewelry insurance coverage.

What is jewelry insurance?

Jewelry insurance is a way to protect valuable jewelry like engagement rings, wedding bands, necklaces, earrings, diamond rings, and watches if something happens to it. If your jewelry is damaged by an event covered in your policy — whether it’s accidental loss, theft, or something else — the insurance company will pay you money to repair or replace that piece of jewelry up to its appraised value. 

The appraised value is how much your jewelry is officially worth, usually determined by a professional jewelry appraiser. 

You can purchase insurance on jewelry as an add-on to your homeowners or renters insurance policy or through a specialized jewelry insurance company.

What type of insurance covers jewelry?

You have two main options for insuring valuable jewelry pieces like an engagement ring:

• Option 1: Add a jewelry rider or floater to your homeowners insurance policy

• Option 2: Purchase a separate stand-alone jewelry insurance policy

Either option will add much-needed coverage to protect your jewelry. But if you already own a home, adding a floater (also known as adding a rider or scheduling an item) onto your existing policy is smart.

Here's a breakdown of how each option works and when one may be better than the other:

What you should know about adding a jewelry rider to your existing homeowners policy:

• It’s generally the most affordable option if you already have home insurance (also known as HO-3 insurance).

• It’s very easy to add coverage to your policy — just contact your existing insurance provider.

• It streamlines the claims process since any jewelry loss can be conveniently filed along with other covered damages on the same homeowners insurance claim.

• Some insurers may cap total jewelry coverage at around $10,000, even with an add-on.

Purchasing stand-alone jewelry insurance:

• You purchase the policy through a specialized jewelry insurer, not a home insurance company.

• Premiums may be higher than those of a jewelry rider, but you get broader protection.

• It might be a better option if you have very high-value jewelry collections that exceed even what a home insurance jewelry floater will cover.

A rider is simplest if you just need to insure one nice engagement ring, watch, or wedding set and don't have many other very expensive pieces. It can also be a much cheaper option — sometimes, as low as $20 on a piece of jewelry per year (but more on that later).

💡Tip

If you’re looking to insure an engagement ring only and are worried about how much engagement ring insurance costs, explore adding a rider to your homeowners policy for affordable coverage. But also get stand-alone jewelry insurance quotes to compare costs. It always pays to shop around.

How does jewelry insurance work?

Wondering how to insure jewelry? It usually works like this:

• You get any high-value jewelry professionally appraised to determine its current market value.

• You contact your insurance provider and request that a jewelry rider or floater be added to your policy for that appraised value. 

• Forward your insurance company a copy of your appraisal so they have it on record. 

• Pay an additional yearly premium, often around 1% to 2% of the appraised value, to extend coverage to that piece of jewelry.

• If your insured jewelry is lost, stolen, or damaged, you can make a claim and receive a reimbursement up to the appraised value to repair or replace the item.

If your claim is approved, you’ll usually get back your full appraised value up to your policy limits. There’s usually no deductible for jewelry floaters, so you receive 100% reimbursement. However, depending on the company, you may choose to pay a $100, $250 or $500 jewelry insurance deductible in exchange for lower premiums. 

Most standard jewelry insurance doesn't cover:

• Intentional losses

• Intentional damage

• Wear and tear

• Damage due to war or nuclear hazards

But it's important to understand your policy limits, deductibles, and exclusions. Your policy may still have limits on how much it will cover for a single piece of jewelry or your total collection, so familiarize yourself with these numbers. 

How do I claim lost jewelry?

The home insurance claims process for lost or stolen jewelry can seem tricky, especially if you've just added a jewelry floater or rider to your homeowners insurance policy. But you’ll often follow these steps:

Step 1: Report the jewelry incident to your insurer immediately

As soon as you realize your insured jewelry is lost, damaged, or stolen, report it to your insurance company right away. There are often contractual requirements to file a claim within a certain timeframe, so act quickly.

If your earrings fall down the kitchen drain or a bracelet has gone missing, you'll want to check with your policy to see if "mysterious disappearances" are covered. While most insurers will cover accidental loss, some have policies against items that go missing unexpectedly. 

• A mysterious disappearance is when an item has either been stolen or has gone missing, and the owner doesn't know which one.

• An accidental loss is when an item is lost with no way to retrieve it (such as a bracelet falling off your wrist).

Knowing this information upfront will help you avoid a surprising claim denial.

Step 2: Provide documentation

You'll need to submit a detailed claim, typically including a police report if the item was stolen. You can typically submit a claim online.

The insurer will require you to provide a copy of the professional appraisal or grading report that documented the value when you scheduled the jewelry on your policy.

Step 3: Go through the claims adjuster process

Your insurance company will assign a claims adjuster to investigate the jewelry loss. They may request additional documentation like photos, certifications or receipts. The adjuster will review your claim against the covered perils and terms in your engagement ring insurance, watch insurance or overall jewelry policy.

Then, the claims examiner will schedule a time to replace your item with your jeweler. You will be asked to approve any replacements being made in the process to ensure that the item you're getting is a suitable alternative for what you lost (both in terms of price and quality). 

Step 4: Wait to find out your settlement

If your jewelry insurance claim is approved, the adjuster will determine a settlement amount based on the appraised scheduled value or repair costs. This will be paid out up to the coverage limit on your jewelry insurance rider or policy.

Step 5: Accept your settlement and replace your jewelry

You can accept the claims payment to replace the jewelry yourself. Some insurers allow working directly with a designated jeweler to have the replacement piece billed to the insurance company.

What does jewelry insurance cover?

A jewelry insurance rider or endorsement can cover a wide range of fine jewelry items, including:

• Engagement rings and wedding rings

• Loose diamonds or gemstones

• Diamond or gemstone jewelry (necklaces, bracelets, earrings, and more)

• Luxury watches

• Antique and vintage jewelry

• Estate jewelry

• Pearls (natural or cultured)

That said, it typically doesn’t make sense to get jewelry insurance for things like:

• Costume jewelry

• Plated jewelry (gold or silver plated)

• Cheap watches

• Beaded jewelry

• Handmade craft jewelry

Getting professional appraisals are required to document the value, components, and characteristics that deem your jewelry as "fine" and eligible for this supplemental scheduled coverage.

But the main criteria to ask yourself is: Would you be devastated if you lost this piece of jewelry and found out your base home insurance policy wouldn’t be enough to cover it? Also, do you have enough savings to replace the jewelry yourself? If not, adding a jewelry rider may make sense. 

When is jewelry covered by homeowners insurance?

When it comes to engagement rings, wedding bands, watches and other precious pieces, homeowners insurance provides limited coverage. Adding specific jewelry insurance through a rider, endorsement, or stand-alone jewelry insurance policy expands the protection for your valuable jewelry beyond standard homeowners policies.

A comprehensive jewelry insurance policy or homeowners insurance rider would typically cover:

• Accidental loss: Jewelry insurance covers instances where you misplace or accidentally lose an insured piece, such as an engagement ring or diamond necklace, through no direct fault of your own.

• Damage: This covers repair or replacement if your jewelry suffers interior or exterior damage, such as broken clasps, loose stones, or other damage.

• Natural disasters. Depending on your policy, your jewelry insurance may be covered for events like fires, tornadoes, and even hurricanes (for which you often require separate hurricane insurance).

• Mysterious disappearance: In certain cases, jewelry insurance covers an item that has been either stolen or misplaced. For example, if you reach for a bracelet you haven't worn in six months and find it missing but are unsure if it's been lost or stolen, your insurer may cover it. 

• Theft: If your engagement ring or jewelry is stolen in a robbery or home break-in, the theft insurance portion of your policy will cover the loss. 

• Transit or travel. Many riders protect your scheduled jewelry against loss, damage and other covered perils while traveling locally or abroad. You don’t have to be at home. 

To have a covered jewelry insurance claim approved, you'll need to report the loss promptly, provide documentation like appraisals, and ensure the incident didn't violate any policy exclusions or negligence clauses.

How much is jewelry insurance?

Compared to the average home insurance cost, the cost of jewelry insurance is a small part.

Most insurers require an annual jewelry insurance premium of 1% to 2% of the total insured value as the jewelry insurance cost. So, for a $5,000 diamond necklace, you could expect to pay $50 to $100 per year for insurance on that jewelry piece. Engagement ring insurance for a $10,000 ring might cost $100 to $200 annually.

If you only need to insure for a diamond ring or a few high-value items like watches or diamond jewelry, adding a scheduled personal property endorsement or "floater" to your existing homeowners insurance can provide affordable ring insurance or jewelry coverage. 

But those with sizable luxury collections will likely want comprehensive insurance for jewelry tailored to expensive, unique pieces.

No matter if you opt for engagement ring insurance, wedding ring insurance, watch insurance or a broader jewelry insurance policy, the insurers will want an official appraisal to determine the accurate insured value before providing coverage.

While the price for insuring jewelry may seem minimal, the emotional value of cherished rings, necklaces and other pieces is priceless. Having the right insurance for jewelry allows you to enjoy your treasured belongings with confidence, knowing they are protected if ever lost, stolen or damaged.

Still have questions?

Want to know more about jewelry insurance? Take a look at some of the most frequently asked questions on the topic.

Is jewelry insurance worth it?

Jewelry insurance can be worth it if you want to insure a diamond ring or you own valuable pieces that would be difficult to replace on your own. It provides financial protection and peace of mind in case those items are lost, stolen, or damaged. However, jewelry insurance is usually unnecessary for inexpensive costume jewelry or if your total jewelry collection is under your base home insurance policy's sublimit, usually $1,500.

How soon can you file a claim after getting jewelry insurance?

Most jewelry insurance policies have a waiting period of 30 to 90 days before you can make your first claim for a lost or damaged piece. This helps prevent insurance fraud. After that initial waiting period, you can typically file a jewelry insurance claim immediately after a loss occurs.

How do insurance companies determine the value of jewelry?

Insurance companies require an official appraisal from a certified professional jeweler to determine the insured value of each piece of jewelry. This appraisal considers factors like precious materials, gemstone quality and weight, craftsmanship, and current market values.

Is jewelry insurance tax deductible?

Typically, the premiums paid for jewelry insurance or insurance on an engagement ring are not tax deductible for individual taxpayers. But if you use the jewelry for business purposes, the insurance cost may qualify as a tax-deductible business expense. Talk to a tax professional to confirm. 

When should I insure jewelry?

You should consider insuring an engagement ring and other particularly valuable jewelry—whether due to its monetary or sentimental value. It's generally recommended to have insurance for jewelry worth $1,500 or more (or whatever your base sub-limit is) to provide adequate protection in case of loss, theft, or damage.

How to insure an engagement ring?

The first step to insuring an engagement ring is to have it appraised by a certified jeweler to determine its insured value. Then, you can add a jewelry rider or scheduled endorsement to your homeowners or renters policy or purchase a separate jewelry insurance policy. Be sure to update the ring appraisal every few years.

Still have questions on insuring jewelry, engagement ring insurance costs, or how jewelry insurance works? Let us know! Protecting your cherished pieces is important.