Whether you’ve spent a lifetime building your jewellery collection or are just beginning to gather a few key pieces, making sure your treasure is safe and insured should be a key concern.
Simply relying on your homeowner or renter insurance may not be enough to sufficiently cover more valuable pieces adequately. Check your policy thoroughly to clarify the exact parameters of what your current policy will cover.
Taking out a specific insurance policy for your collection need not be complicated. The three most common types of policy are Valued At, Actual Value and Market Value Replacement.
Valued At policies are less common due to their expense. Say your diamond necklace is worth £1000 but of great sentimental value, the insurer will accept your own valuation, for example £1500, to cover the added cost of emotional upset. You can see why these policies are expensive!
An Actual Value policy is the most common and economically viable. This policy will reimburse you in cash, however the amount will be the current market value of the piece (which could mean depreciation) rather than its original value.
Market Value Replacement policies are essentially the same as Actual Value, though, as the name suggests, your lovely diamond earrings would be replaced with a pair at the current market value rather than compensating you in cash.
Here are some key points to check:
* What are the terms with regard to storage of your pieces?
* Are basic repairs covered by the policy?
* Is your jewellery covered in transit and abroad?
