Did you ever notice that in summertime people wear less clothes but more jewelry? The warmer the weather, the more skin available for more “bling”. That being said, I wonder how much of most people’s sparkly jewelry is valuable and if they have those pieces are insured. (Yes, these are the kinds of questions a CPO® thinks of!)
June is a perfect month to declutter your jewelry and see if you should get any particular pieces scheduled. More on this in a minute…
Any individual piece of jewelry that is valued at more than $1,500 should be insured on a special jewelry endorsement that is added to your homeowner’s or renter’s policy. In insurance terms, this is called “scheduling”your jewelry. (Sounds like what I do with my time. Hint, hint.)
High-value items are insured as part of the “personal property coverage” on a standard homeowner’s or renter’s policy, but only to certain limits. If the value of an individual item (such as an engagement ring) exceeds the stated limit, there is no coverage for the difference… unless you purchased a “scheduled personal property” endorsement.
This advice applies not only for jewelry, but also for antiques, art, high-value rugs, coin collections, firearms, and certain other items.
Love That Something Sparkly? Get Organized and Get It Insured.
Of course, this advice doesn’t apply only for an engagement ring. Don’t forget about those diamond earrings you got for Christmas and the Rolex you gave for Father’s Day or his well-earned retirement. Simply hold on to your receipt, or obtain a professional appraisal to determine the value of the item.
In order to schedule a piece of jewelry, an insurance agent will ask that you provide a picture of the item, and either a receipt or a professional appraisal. Depending on your insurance company, cost usually runs about $12 per $1,000 value.
My colleague Greg Riabov of Warwick Resource Group LLC. helped me to write this article. If you have any questions, please don’t hesitate to give him a call at 845-986-2211. He is happy to help and answer insurance related questions.
Four Steps To Ensure That Your Cherished and Prized Items Are Secured:
- Have all the items that you wish to be covered evaluated by a reputable jeweler or appraiser. Have the value documented, photographs of the item taken and present this information to your insurance provider. It will help to assess if the current coverage you have is adequate or if an additional rider is needed.
- Keep all original receipts of your purchased in a safe place and forward copies to your insurer as backup.
- Make an inventory checklist of all the items that you assume are covered under your homeowers/renters policy. This will help you if you need to file a claim.
- Lastly, once a year, call or visit your insurance provider and review what is currently on your policy.
Inherited a jewelry box? Please follow this advice
If you inherited jewelry, do yourself a favor and be sure to get it appraised. Nine times out of ten, people assume that the jewelry they inherited is costume jewelry and of little value. And nine times out of ten, they are wrong.
Not only that: The cost of gold and platinum has been on the rise over the past years, so if you have jewelry that has been appraised five or more years ago, it may have appreciated in value and might need to be appraised again.
Ideas for Decluttering Your Jewelry…
So where do you keep your jewelry?
- Jewelry box or jewelry armoire
- Home safe and/or safe deposit box at a bank
- In plastic baggies or little boxes scattered about
- In a ceiling tile or hidden under the carpet
First go find and organize all of your jewelry. Did you find any jewelry clutter? If so, maybe you can do any of the following to help you either declutter it or repurpose it:
- Reset it or have a jeweler turn it into something you would love to wear
- Give it as a gift
- Sell it if valuable
- Donate it if it is not valuable
Now you are left with what you like and hopefully will wear!