Insurance

Are you adequately covered in case of loss, theft or damage?

This is very important! You are covered only as well as your report is written and by the qualifications of the appraiser.

Dollar amounts if higher than necessary do not guarantee the amount settled upon in case of loss, theft or damage.

Do not rely on inflated and often fictitious dollar amounts or appraisals with very little information. This will benefit your insurer and cost you money in premiums and may not “make you whole” in case of loss. You have to understand your individual policy and how you are covered.

Decide what type of policy fits your needs.

Scheduled Policies: A separate policy in addition to your homeowner’s policy. You should ensure you are covered for “all risks,” including fire, theft, damage, etc. Keep in mind that even though you may have “replacement cost coverage” on your policy, the appraisal will set your premium and your coverage limit on the scheduled item in the event of a claim.

Agreed Cash Value Policy: This type of policy is written by a few insurers and usually comes with very high premiums, in many cases making these policies unreasonable for most people’s needs. This type of policy will pay out the appraised value as the settlement on a claim and is best for items like antique and period jewelry and watches, one-of-a-kind pieces of lapidary art, gemstones that are no longer available on the open market, or custom pieces of jewelry created by a known artist that is no longer working.

Homeowners (Unscheduled): This is covered under your homeowner’s policy. The coverage is limited and is almost never an “all risk” coverage situation. You need to ask what the coverage limitations are and what the per-item limit and aggregate limit is within your policy. You will also have a deductible and will always be responsible for paying the deductible. Again, even though you may have “replacement cost” coverage, you will be limited to the per-item amount as stated in the policy. This coverage is most appropriate for items worth less than a couple of hundred dollars.

ALWAYS KEEP YOUR ORIGINAL APPRAISALS, LABORATORY REPORTS, AND PHOTOGRAPHS SOMEWHERE SAFE. MAKE SURE YOU KEEP THE ORIGINALS AND GIVE YOUR INSURANCE COMPANY A COPY, WHEN YOU GIVE THEM THE ORIGINAL, THEY WILL BE LOST!

You have to understand your individual policy and how you are covered, so please talk with your agent before you select a policy.

In addition to your homeowner’s you can explore coverage through companies such as Jeweler’s Mutual or Touchstone Insurance. They will provide coverage on only your jewelry items.

Questions to Ask Your Insurance Agent

1. Is an appraisal necessary for full coverage?
2. Will my claim - and the replacement value - be more readily accepted if the appraisal has been done by an AGS Independent Certified Gemologist Appraiser or Advanced Personal Property Appraiser?
3. What is the difference between scheduled and unscheduled coverage?
4. Is there a deductible? If so, how much? Do I have the option to increase the deductible and thus lower the premium?
5. Is my policy all-risk (partial loss, damage, theft, mysterious disappearance & other perils)?
6. Am I still covered if there is negligence or carelessness involved?
7. Is the item covered if lost, stolen or damaged while in the possession of someone else?
8. If there is a loss, do I have a choice of a full cash-out or will I have to accept less?
9. Can I go to whomever I wish for replacement?
10. If a loss has been replaced through an insurance company source, will I be allowed to verify proper replacement by an independent firm or accredited appraiser of my choice?
11. Is there a difference in limitation between jewelry and silverware?
12. Are there any geographical limitations to my coverage?
13. What is the premium rate per thousand dollars of value for full coverage?
14. Is depreciation ever imposed to anything?
15. How often should I have an appraisal update?
16. Am I limited to the appraisal value should there be a sizable increase in the value?
17. If there is damage to a piece, can I replace it or will I be limited to repair?
18. What if the lost item is irreplaceable, like an antique?
19. Is there any security precautions required? If not, would there be a premium savings if special precautions were taken, e.g., the items kept in a home safe or in a safety deposit box when not being worn?
20. What proof is needed in reporting a loss?
21. Are there different kinds of jewelry insurance available?
22. Are there any exclusions?
23. What is the pair and set clause? Will the insurance cover an additional amount for matching a missing item in a set if it hasn't been computed and stated in the appraisal?
24. What types of property are not covered?
25. Will you show me the actual language in the policy, which addresses each concern I have expressed?
26. Will the occurrence of an insured loss affect my continuing coverage?
27. Does all of your insurance charge the same rate per thousand?
28. Does “inflation guard”, if any, apply to my insured jewelry?

The American Gem Society's Appraisals Committee prepared these questions for your use.