Jewelry Insurance - Replacement vs. Reimbursement

I often write about the importance of keeping your jewelry appraisals up to date. Jewelry prices are always changing due to fluctuations in the price of gold and the availability of gemstones. 

Appraisals are key part of keeping your jewelry insurance up to date. In the event of a loss the replacement or reimbursement amount determined by the insurance company is based upon the appraisal that you submit to receive your insurance. Most insurance companies request that you submit an updated appraisal at least every two years to keep your values current. The appraisals that we submit for insurance include a detailed description of the item, a picture and the retail replacement value. We do keep copies of appraisals from the past on hand and charge a minimal price to update them in the future. Most people wear their jewelry on a daily basis and forget about keeping their insurance values updated until there is some sort of a loss. 

 Appraisal documents at Richard Dolgin Private Jeweler 

Appraisal documents at Richard Dolgin Private Jeweler 

We recently wrote a blog referring to Jewelers Mutual new technology that helps up provide you with jewelry insurance coverage on your new jewelry item before you even leave our office. The app is on my iPad and makes it very simple to apply for insurance, submit your appraisal and pay for the policy conveniently from my office. 

 Jewelers Mutual new in store App

Jewelers Mutual new in store App

When it comes to jewelry insurance, each company has different criteria as to how you get paid at the time of loss. It is very important to understand these terms and conditions before you buy jewelry insurance, as they can vary dramatically between different companies. Many companies are very liberal in their payment concepts and work with you diligently to make sure you are happy after your loss of an item. Other jewelry companies are more stringent in their payout policies. Since you are paying a premium to be accommodated at the time of a loss, it is very important to be sure you are treated properly at this time.

Two important concepts that need to be considered are jewelry replacement vs reimbursement. Many policies will only provide for jewelry replacement, with a similar piece of jewelry to what was lost. This involves that once you submit a claim, going to a designated jeweler (make sure the designated jeweler is one you want to work with) to find a new piece of jewelry or have a replacement piece made. Reimbursement policies mean that the jewelry company will send you a check for the appraised value of the lost jewelry item. This allows you to go to the jewel of your choice to get a new piece of jewelry. It is also important to remember that if you have a deductible, to keep your premiums at a lower rate, this amount will come out of your pocket. 

At Richard Dolgin Private Jeweler we specialize in helping you with your jewelry insurance. We have been doing replacements for years with a number of insurance companies and will be happy to use our knowledge to help explain the coverage that works well at the time of a loss. 

Stop by Richard Dolgin Private Jewelers to have your jewelry appraised so you can keep your insurance up to date and wear your jewelry on a daily basis without worry.