Precautions to Take When Buying Jewelry This Holiday Season

Precautions to Take When Buying Jewelry This Holiday SeasonAs holiday season approaches, jewelry theft claims are expected to skyrocket. As claims rise approximately 15 percent this time of year, it is important to take extra precautions in protecting your valuables. To safeguard your assets, NJ Jewelry Insurance is critical.

Being mugged while in the possession of jewelry is undoubtedly a fear, however from an insurance claims perspective, this is rare. What’s more common are items that are not being worn being stolen from the home. Ron Laconi, president of Chartis Insurance, states “Leaving jewelry and items that could be carried out of the house is something you have to guard against. You need to be diligent in safeguarding your valuables and using your safe.”

If traveling, consider using the hotel’s personal safe to store valuable items rather than using the ones provided in the rooms. These are less secure and easily accessed by hotel personnel. Next, when putting on or taking off items such as gloves, ensure your rings are intact.

Next, ensure you have proper coverage for your jewelry. According to The New York Times, the value of precious metals has increased rapidly in the last three years, as gold’s value has increased 66 percent since January 2008. Therefore, a sentimental piece should be appraised to ensure you have enough insurance to cover the cost of the jewelry.

If you receive a piece of jewelry for the holidays, your insurance agent should be contacted immediately to add it to your existing policy. Bear in mind that insurers offer a grace period for adding new pieces to the policy, usually for those who have separate jewelry coverage for high-value items. While you may wish to use your homeowner’s policy to cover the potential loss, it is important to remember that homeowner’s policies only cover minimal amounts of fine jewelry. Therefore, a specific policy that is tailored to your jewelry collection is necessary.

For example, if you receive a necklace as a gift that is appraised at $5,000, but is stolen, would your policy cover that loss? If you only had $1,500 worth of coverage, you wouldn’t be fully reimbursed. As Lisa Lobo of the Hartford stated, “The insurer will pay you the $1,500 after the deductible so you’d be out the rest of the total amount. It’s good to keep an inventory. Things add up quickly.”

At Tri-State Insurance Agency, we custom tailor jewelry policies to match your needs. We understand the value that these sentimental pieces hold and work to protect your collection. For more information, give us a call today at (888) 990-0526.