Jeff Goldstein: Personal, Business, and Life Insurance Broker, Toronto, Ontario

Insuring Your Jewellery - Frequently Asked Questions

Is my jewellry valuable enough to insure?

This is generally a personal decision. Many times, the premium on jewellery insurance policies will be a percentage value of the insured jewellery (with a minimum premium depending on where the policy is purchased). Depending on your situation, working with a personal insurance broker may help you find more personalized coverage with flexible deductibles and / or discounts based on how often you wear your jewellery, how well you take care of it, etc.

What is / is not covered?

Types of coverage will vary with each policy. The most comprehensive coverage, often called "all risk" policies, would cover everything that isn't expressly excluded. This would include any form of loss, damage, theft, or 'mysterious disappearance'. Some policies may include a 'newly purchased jewellery' clause, insuring newly purchased items (with some limitations) which have not yet been added to your policy, or items in transit for appraisal / inspection.

Is my jewellery covered under my homeowner's insurance policy?

While your jewellery may be covered under your home insurance policy, this coverage is usually very limited and additional protection is often needed. Typically, coverage on jewellery collections under a home policy will be as low as $1,000 - $5,000. Often the same deductible will apply to your overall homeowner's coverage as to the jewellery portion, which means the cost to repair or replace your jewellery may far exceed your actual protection. Some risks (such as loss or theft) may also be excluded from coverage depending on your policy. If you think you need additional coverage, contact your personal insurance company about extending your homeowner's policy or for a personal insurance quote on a jewellery-specific policy.

Do I need insurance if my jewellery is under warranty?

Much like a homeowner's insurance policy, coverage under a manufacturer or retailer warranty is usually very limited. Generally, only repairs on wear and tear are covered. This usually excludes damage resulting in the loss of a piece of the jewellery (a stone missing from it's setting for example). Loss or theft coverage is quite rare, and usually very limited in warranties that do include it. Warranties must usually be purchased at the time you acquire your jewellery are and often limited to the price you originally paid for the item. As fine jewellery often appreciates in value, a working out a proper insurance policy with your personal insurance broker is the best way to protect your property for it's true value.