Fine jewelry is often a significant investment. Whether you’re purchasing an engagement ring, wedding ring, luxury watch, or another high-value jewelry piece, it’s important to make sure it’s protected against potential risks. A jewelry warranty or a jewelry insurance policy can provide much-needed peace of mind.
A jewelry warranty is a service plan that primarily covers manufacturing defects and certain types of minor damage. Some jewelry brands and jewelry stores offer limited-time or lifetime warranties with your purchase, but you often have to buy the warranty separately if you want extended protection.
Every jewelry warranty is slightly different. However, most warranties provide complete coverage for manufacturing defects and flaws, as well as limited coverage for minor damage caused by the owner. Here are some of the things that are covered under many jewelry warranty plans:
Before you purchase a jewelry warranty, it’s important to understand what’s not covered by the plan. For example, most warranties will not cover lost stones, missing prongs, normal wear and tear, jewelry cleaning, and discoloration.
In addition, there may be requirements for the work to be covered under warranty. For instance, some warranties require that the work be completed by the jewelry store that sold you the piece. There are also warranties that will only cover the work if you’re the original owner of the item.
Jewelry warranties also tend to have a limited window of coverage. For example, your piece might only be covered for one year after purchase. Once the warranty expires, your jewelry is no longer protected if something happens.
Jewelry insurance is a comprehensive policy that covers your pieces against unforeseen risks, like theft and loss. If something happens to your jewelry, you can file a claim with your insurance company to have the item repaired or replaced. Jewelry insurance protects your pieces for as long as the policy is active. Unlike some warranties, the coverage never expires.
Jewelry insurance provides coverage for a variety of losses. Most jewelry insurance policies are “all-risk” policies, which means your jewelry is covered against any loss that is not explicitly excluded from your policy. Here are some of the things that are usually covered:
In the event of a covered loss, most jewelry insurance policies will cover your piece up to its appraised value. So, if your wedding ring is valued at $3,000 and it gets stolen, your insurance company would reimburse you $3,000 to replace the ring.
If you already have a homeowners insurance or renters insurance policy, your jewelry is covered under your personal property coverage. However, you probably have less coverage for valuable items than you think.
Standard home and renters insurance policies provide limited coverage for expensive items, like jewelry, electronics, and collections. If the value of your jewelry exceeds your policy limits, you don’t have sufficient coverage in the event of a loss, like a break-in or a house fire.
Purchasing a separate jewelry insurance policy ensures your pieces are protected, up to their appraised value. Best of all, the cost of jewelry insurance is pretty affordable, so it won’t add much to your existing insurance premiums.
Most jewelry insurance policies cost between 1-2% of the appraised value of the item per year. So, a $2,000 pair of earrings could cost only $20 per year to insure, which is less than $2 per month.
If you’re choosing between a jewelry warranty and a jewelry insurance policy, it’s important to understand how they differ. You might find that one plan is better for your needs than another.
Simply put, a jewelry warranty mainly covers manufacturing defects and flaws, whereas a jewelry insurance policy covers most risks that jewelry owners and wearers might face, like theft and mysterious disappearance. Some jewelry insurance policies also cover basic maintenance, but it depends on the plan.
If something unexpected happens, like your engagement ring falling off in the ocean, your jewelry insurance company reimburses you for the cost of a new one. Without insurance, you would have to pay for a new ring entirely out-of-pocket. In this situation, a jewelry warranty would not provide any protection for the lost item.
A jewelry warranty and a jewelry insurance policy can both be good options, depending on your needs. However, a jewelry insurance policy will provide much broader coverage, and therefore, is often a better investment.
Even if you’re careful with your pieces, you never know when something unexpected will occur. What would happen if you lost your wedding ring on vacation? Could you afford to replace it with another one? In this situation, a jewelry insurance policy would reimburse you for a new ring, based on the value of your original one.
The low cost of jewelry insurance is another reason to purchase a policy. Jewelry insurance is more affordable than many other types of insurance, even if you have a large collection of pieces. For just a few dollars per month, you can rest assured that your jewelry is protected against potential risks.
Join Oyster today to learn how you can be properly protected from the unexpected things in life.