Most people take more care in selecting diamonds and jewelry than they do in choosing an insurance policy that protects their purchases from loss, damage or theft. This is unfortunate, because the reimbursement and replacement policies of insurance companies vary considerably when it is time to pay a claim. Some insurers will not reimburse for “full value” as indicated in the policy, but will instead exercise the right to replace the item by either offering a cash settlement, which can be below the full replacement cost, or by purchasing a substitute.

We recommend that you ask the following questions if you purchase additional insurance for your fine jewelry:

  • Is there a deductible? If so, how much is it and how does raising or lowering the deductible affect your premiums?
  • Do you need to get an appraisal? If so, what are the requirements?
  • Are items covered no matter where the loss occurs? For instance, are you covered during domestic and/or international travel?
  • Is negligence covered?
  • Is the policy for full value replacement cost?
  • Does the insurance cover both repair and replacement?
  • Must you replace the item, or can you obtain a cash settlement?
  • What happens if an item is not replaceable?
  • What types of documentation will you have to provide when you make a claim?