Aim to have your jewellery insured either before or right after it is purchased. The coverage will protect against any financial losses of your precious pieces and help preserve the sentiment behind the piece through reimbursement or replacement options.
INSURANCE COVERAGE FOR PLATINUM ENGAGEMENT RINGS
The first step is to talk to take a look at your homeowner’s insurance policy. These policies usually only cover items if they’re stolen and not if they’re damaged or lost. But you can buy an extension for the policy to cover higher value items like your engagement and wedding rings. Typically your jewellery will need an appraisal before it can be insured.
You can take your jewels along to a certified appraiser for an appraisal or even a gemmologist. When you get the items appraised, you can verify the appraisal based on the value of your jewellery which includes:
Agreed value – which allows the insurer and you to agree on a settlement price.
- Cash value – this is the value of the item and today’s market rate and not at the purchase price.
- Replacement value – the value the insurer will pay you, set according to the current market value at the time of losing the piece.
It’s recommended that you have your platinum engagement rings and other items appraised every couple of years to maintain an accurate appraisal. Keep an eye on the market value of precious gems and metals, too, and have your documentation updated when necessary.