Insuring your gemstones - JewelInfo4u

The Value of Insuring Gems

Never think that the money you spend on insuring your gems is a waste just because you keep them securely locked away. Burglars have become adept at opening even the most sophisticated locks. Stolen jewelry is very difficult to trace and recover because often the ornaments are broken down and the stones sold independently. Besides theft, items of jewelry are often lost or misplaced. If this occurs while traveling, the chances of recovering the lost articles are practically non-existent! Or they could even be seriously damaged. Insurance covers all eventualities. But you should know how to get your jewelry properly appraised for the purpose of insurance in order to get the maximum benefit in case of theft, loss or damage.

General Insurance
Most jewelry retailers provide appraisals for the purpose of insurance, but they may not be up to the standards required by insurance companies. This will result in the policy holder ending up with insurance compensation that is far less than the actual value of the jewelry. The same situation arises if the jewelry is covered by a general home owner's or renter's insurance policy, which normally specifies several conditions for getting full value coverage. You should enquire whether the policy covers theft, loss and damage. Find out details of conditions for getting full coverage. On payment of an additional charge, some companies provide full coverage for jewelry along with a general policy.

Some companies will not cover theft, loss or damage if it occurs while you are traveling. In cases of theft or loss, while some companies will reimburse the value in cash, others will pay for a replacement. In case of damage to stones or pieces of jewelry, you should know whether the policy covers repair or replacement. Be sure to find an insurance agent who will provide you all details concerning the policy and its coverage. If you think the agent is concealing information, find another agent. Get information concerning insurance for jewelry from different insurance companies and make a comparative study to see where you will get the best value for your money. Check out the reputation of the various insurance companies and get information concerning their attitude towards settling claims. Companies with a rigid approach are better avoided, especially if the premium they charge is on the high side.


Specific Insurance for Jewelry
If you have valuable pieces of jewelry, it will be wiser to have them insured separately. Then you can be sure that you will get full coverage for theft, loss and damage. First of all find an accredited Master Gemologist Appraiser to make a qualitative analysis of your jewelry, and identify and certify each piece individually with photographs attached. The appraisal should be specifically for the purpose of insurance. Master Gemologists conduct appraisals for various requirements other than insurance. Different methods are adopted for valuing gems for different purposes. Two gems may be perfectly identical in every way, but one may be far more valuable simply because of the history attached to it. The value of a gem can be considerably higher than its cost which is determined on technical specifications. Only a Master Gemologist is properly trained and equipped to ascertain every minute detail that can affect the value of a precious stone. Sophisticated equipment and accessories are used to conduct a comprehensive technical analysis of the gem. The criteria applicable in valuing a gem for tax purposes will be quite different when the same stone is valued for insurance, or when it is part of a collection for distribution among heirs. Appraisers adopt a different approach when valuing a stone for sale or auction.

The main consideration in having your gems valued by a Master Gemologist Appraiser for the purpose of insurance is that you should get full value coverage - and not just full cost coverage - in the event of theft, loss or damage. The amount you spend on the appraiser or the additional premium will be insignificant in comparison to what you could loose if the gems are improperly valued. Once a stone has been appraised and certified by a Master Gemologist, the value attached to it is accepted by practically every insurance company, and also by most other financial institutions. It is advisable to have your gems revalued periodically in order to assess current value of the stone for insurance purposes.

Safety is the best "Insurance Policy"
There is no doubt that keeping your precious stones safe and secure is a good policy. Take good care of them so that they do not get damaged. Clean them regularly and keep them packed in soft cloth or cotton. The ideal place for them is in a safety deposit locker. But there is a slight catch here - gems are not purchased to be locked away permanently, they are meant to be worn! So they have to come out of their lockers periodically and be displayed in public places. And it is during these excursions that the element of risk comes in - your jewelry may be stolen, lost or damaged. These worrying thoughts are the last thing you want on your mind when you are out to enjoy a happy occasion. So be happy and let the insurance company do the worrying! You need insurance to cover this element of risk and that is why availing of the best insurance policy is the safest way of protecting your precious investment.

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