Jewelry Insurance: How Does It Work, Options, Cost


Many people have some special, cherished pieces of jewelry that they want to keep safe. But when it comes to jewelry, you should wear it, not worry about it!

In this article, we will cover how you can protect your jewelry, what jewelry insurance is, and how does jewelry insurance work.

What Is Jewelry Insurance?

Insuring jewelry or jewelry insurance is a specialized cover designed just for jewelry. Jewelry insurance policies provide specific benefits that take into account how you use your jewelry, and how it should be treated in case it’s stolen, lost, or damaged.

Just like car insurance protects your car or your travel insurance is protecting you while you travel, you can protect your jewelry, such as a valuable diamond engagement ring, black pearl necklace, a vintage Rolex, or anything else you possess.

If you have only a few heirlooms, for instance, a couple of bracelets or a wedding ring, you can schedule the jewelry on your existing home insurance policy. Also, you can always add a jewelry rider to the insurance (or buy a standalone policy) if the value of the jewelry is higher than the policy limits allow.

Unlike a home insurance policy, jewelry insurance is insuring your valuables outside of the home and it will provide cover for everyday wear.

DID YOU KNOW: According to the National Association of Insurance Commissioners (NAIC) data, around 85% of the US homeowners have home insurance policies, and 79.09% of them are HO-3 policies.

What Does Jewelry Insurance Cover?

Different insurance companies will give you different insurance options for your jewelry. You should be aware that a good insurance plan should provide you with full coverage of the jewelry in case of damage, accidental loss, theft, or mysterious disappearance. In spite of that, you should know that a full-cost coverage provided by a jewelry insurance policy will almost always include sales taxes as part of the coverage.

Not only for jewelry warranty insurance coverage but for home warranties as well, my advice is to check all the details and understand what exactly they cover and what their purpose is. Make sure you choose a trustworthy warranty company.

How Does Jewelry Insurance Work? 

Normally, a standard homeowner’s insurance will cover valuable items such as jewelry, appliances, artwork, and antique items. Most policies cover only valuables up to an assigned price limit, frequently around $1,500. But, you can add on a rider to your existing insurance policy, which will extend the amount of coverage for your valuable jewelry. It will even protect you from events that aren’t covered in a homeowners’ policy, like accidental loss or fire.

Nonetheless, if you have items of high value, a jewelry appraisal for insurance is likely to be required to determine how much they can be insured for. How much the items will be insured for depends on their value at appraisal and not the price you’ve paid for them. It’s advisable that you get high-value jewelry appraised every 2 or 3 years, in order to keep your precious jewelry insured for what it’s worth.

If you want to report a theft, lost goods, or damaged jewelry, you need to file a claim or even file a police report. Jewelry insurance claims work in a very similar way to car insurance claims. You will be assigned a claim number by a policy agent, and you need to provide relevant photos, documentation about the lost or stolen jewelry, and police reports.

Also, you’ll need two essential documents for filing the claim. The first one is the value appraisal for the stolen item, and if it’s diamond jewelry, the AGSL certification report, or the center diamond’s GIA.

For better protection of your personal belongings, you can always choose one of the best and most trusted security systems.

DID YOU KNOW: According to a ValuePenguin survey, 47% of homeowners aren’t sure of what their insurance covers, and almost 20% have never reviewed their policies.

Adding Jewelry to Home Insurance

If you think that your jewelry collection is already insured by your home insurance policy, you might be right. It may be, but partially. Most homeowners insurance policies include only very limited coverage of jewelry due to its high value. Many insurance companies put a dollar limit on the amount of jewelry coverage that they automatically add to their policies.

A homeowner’s personal property coverage will typically cover $1,000/$2,000 for all of your jewelry combined. So, the deductible will impact the amount you receive on a claim, thus it’s a good idea to have some savings aside to cover any gaps. This way you will be able to replace the jewelry after receiving your jewelry insurance claims.

Eventually, if your jewelry’s total value is more than the limit of the jewelry in your policy, it’s advisable to add additional insurance coverage. In order to do this, you should increase your total coverage jewelry limit under the homeowners’ insurance or include particular jewelry items through itemized personal property coverage. Additionally, if you opt for higher amounts of coverage, it will also provide coverage for a broader range of losses.

Key Takeaways

If you possess higher-value jewelry collections, you need to consider adding a rider or insurance floater to your already existing home or renters insurance policy.
Jewelry insurance is specialized coverage designed just for jewelry. Jewelry insurance policies provide specific benefits that take into account how you use your jewelry, and how it should be treated in case it’s stolen, lost, or damaged.
In case you only have a few jewelry items that don’t exceed your personal limit, you can schedule those jewelry items in your existing home insurance.
When considering a rider or perhaps a stand-alone jewelry insurance policy, you should always compare the rates.
Most insurance companies require 1%-2% of the jewelry’s value as a yearly down payment.

Jewelry Insurance Cost 

From the value to the type of your jewelry, many factors should be considered when it comes to the cost of the jewelry insurance. If you insure more items, you’ll probably receive a discount. For instance, a $50,000 ring will cost you $500 annually, and a $5,000 bracelet will cost you $50 per year. There are other costs, such as appraisers’ fees. So, you would have to plan on an extra $50 to $150 per hour to insure the items.

Even though your particular premium for jewelry insurance cost will depend on various factors, coverage will generally cost about 1%-2% of the value of your jewelry. Also, the premium you will pay is affected by the deductible you choose. You should know that you are the one paying the deductible when filing a claim.

Usually, a higher deductible means a lower premium, and a lower deductible generally means a higher premium. Keep these things in mind when calculating the cost of your jewelry insurance. In order to pay less and protect your finances when unpleasant and unexpected things happen, you should know how to insure jewelry, and consider adding diminishing deductible coverage to your renters or homeowners insurance.

Coverage Limits and Replacement Costs

Typically, renters or homeowners insurance has a limit for personal property like electronics, furniture, clothes, etc. So, if your jewelry items are worth a notable amount of money, adding their value to the personal property insurance can exceed the coverage limit. If that happens, you need to purchase standalone jewelry insurance or use a jewelry rider.

On the other hand, when it comes to receiving a payout, there are two options: replacement cost or cash value. If you decide on cash value, the insurance company will pay you the value of your jewelry, minus depreciation. For more expensive jewelry, replacement cost is the way to go. In case it’s stolen or lost, you will receive a check for the cost of replacing your stolen items with new ones.

DID YOU KNOW: Statista reports that precious metals and jewelry worth around $837.91 million were stolen in 2020, in the US, and only around 3% of the total value was recovered in the same year. But if you have jewelry insurance or a jewelry replacement insurance policy, your items will be replaced in case they can’t be found.

Wrap Up

Before deciding on a certain jewelry insurance policy, you need to make sure that you know how to insure jewelry and what that particular insurance policy covers. If you understand the exact extent of the jewelry-only coverages, it will help you choose the right one and have better protection for that cherished and expensive piece of jewelry you want to insure.


Is jewelry insurance worth it?

If your jewelry items are of lower value or can be easily replaced in case they are damaged or lost, most likely you don’t need jewelry insurance. But if you own high-value jewelry that cannot be replaced, jewelry insurance can be a good idea. It’s up to you.

Does insurance cover lost jewelry?

How does jewelry insurance work in case the covered jewels are lost? It depends on the insurance policy, which could provide full or partial coverage.

How to insure a ring?

You need to find out the value of the ring to see if you can add it to your homeowner’s insurance. Find a professional appraiser to examine the ring and provide you with the appropriate documentation. You can get a second opinion, then contact a broker or insurer for the jewelry limit you need.


I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.

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