Jewelry insurance: Is it worth it?

Most homeowner’s insurance policies have jewelry insurance coverage built in. However, the covered amount of jewelry is usually quite low. If your homeowner’s insurance policy does provide coverage for jewelry, it's a good idea to check the amount coverage. If your jewelry is more valuable than what is covered by your general insurance policy, a separate jewelry policy may yield better coverage.

Most separate jewelry policies require you to list out each item separately and describe them in good detail. While this may be tedious, if you happen to damage or lose a piece of jewelry, it will make it easier for you to get an appropriate replacement or repair. Taking photos and retaining original bill of sales will be helpful in the event you need to make a jewelry insurance claim.

An appraisal for your most expensive jewelry items is typical par for the course applicable to most jewelry insurance policies. However, keep in mind that the appraised value is the maximum that you would receive in case of loss or theft. Depreciation may come into play, and the appraised value may be adjusted downward due to depreciation and the actual cost of replacement after depreciation is deducted.