Does the insurance cover the loss of a jewel?
We have home insurance, but most of these policies only cover jewellery, watches and furs up to a combined cap of just $6,000, subject to the standard deductible. My ring was worth more than that. The insurance contract for our old house had been insured separately (“attached”), but I had forgotten to add this additional protection to the agreement covering our new home. It was the guilt for not having done it that gnawed at me the most.
On Sunday, I narrowly bought myself a hazmat suit and a medical mask to dive into the dumpster, down the alley, looking for my ring. But first, I went upstairs to sort through my dirty laundry, and what did I find? My engagement ring is in the pocket of my jeans! I must have been distracted by a phone call as I took off my rounds and slipped it into that pocket when I ran to get my cell phone. Hallelujah!
You can imagine that I learned my lesson and immediately included my ring in my insurance contract. Adding a jewellery addendum to your homeowner’s or tenant’s insurance policy has several benefits, says Brian Waddell, president of Waddell Insurance Brokers Limited in Mississauga, Ont. These benefits include:
Protection if a gemstone falls out of your ring. According to Waddell, this is the most common claim.
No deductible applies (unlike the $1,000 deductible for non-scheduled property loss claims — then you pay the first $1,000, and the insurance company pays the remains up to your limit).
How much does it cost to insure your jewellery separately?
The cost of adding a jewellery supplement to your home insurance policy typically ranges from 1½ to 2 per cent of their appraised value. (As the value of diamonds increases, the value of some diamond jewellery tends to appreciate, and insurance companies usually require a new appraisal of jewellery every five years.) So, depending on the rates charged by your insurer, insuring your $5,000 engagement ring could cost you between $75 and $100 a year. Whether the expense is worth it is up to you.
What about your other prized possessions?
Electronic. Your home insurance policy covers High-tech devices such as computer hardware, software and sound equipment up to the maximum provided, but unless you take out replacement cost insurance, such equipment, such as the rest of the contents of your home, are only insured for their current depreciated value rather than their replacement cost.
Cameras. Like computer equipment, the depreciated value of photographic equipment is covered up to the limit provided, unless you have taken out replacement cost insurance, notes Waddell. Adding your advanced camera and lenses to your contract also ensures them without deductible against breakage.
I know being newlywed can be extraordinarily uplifting, and jewellery insurance is probably the last thing on your mind. It wasn’t until I lost my ring that I realized how important this insurance is
