Tips on buying jewellery insurance

Most homeowners or renters insurance policies offer very limited coverage for jewellery. Ideally, such valuables should be protected under a jewellery insurance policy. By conducting a little research before purchasing jewellery insurance, you can save on premiums and select the desired level of coverage for your items.

To ensure that pricey jewellery items have sufficient insurance coverage, you will need to purchase what is known as a "floater" policy. This type of insurance extends the coverage of individual pieces of jewellery. Generally, these policies do not attract deductibles, but be sure to read the fine print.

A jewellery floater policy provides extensive protection that covers different scenarios, including loss, theft, damage and mysterious disappearance. In the event that your jewellery is damaged, the insurance policy will cover the cost of having it repaired. Some insurers insist that you use the reimbursement amount to replace the jewellery instead.

When shopping for jewellery insurance, there are some important aspects to consider about your jewellery as well as the potential cost of insurance. Here are three tips to help you successfully insure your jewellery:

• Have your jewellery appraised. Your insurance premium will be based on the appraised value of the jewellery item. During the appraisal, you should have photos taken of the item to provide to the insurance company, and to save for your own personal records.

• Keep your sales receipt. If you need to make an insurance claim on a lost or damaged piece of jewellery, having the sales receipt readily available will speed up the insurance claim filing and reimbursement process. Always send a copy of the receipt to your insurance company, and keep the item's original store receipt in your own records.

• Store your jewellery. Some insurance companies have what they call "in the vault" insurance, which is ideal if you store your jewellery in a bank's safety deposit box instead of at home. If you rarely wear the piece and do not need to keep it at your house, having an "in the vault" insurance policy provide you with lower premiums and greater security. You can also purchase additional insurance coverage on the item for the time it's out of the bank's safety deposit box for additional protection.