More Than 6 in 10 Say Their Jewelry Is Uninsured, Even With Coverage Costs as Low as $12 a Year

Valentine's Day is a holiday in which loved ones exchange priceless gifts. However, many people do not consider what would happen if these prized possessions were lost, stolen, or damaged.

According to the most recent LowCostInsurance survey, more than 60% of respondents said their jewelry was uninsured, a startling figure given that adding jewelry coverage to a home or renters insurance policy can cost as little as $12 per year on average. You could be left without that special ring, necklace, or earrings if you don't have insurance — and you'll be kicking yourself for not having coverage.

In addition, we examine the advantages and disadvantages of jewelry insurance policies.

Although 73% of respondents with $10,000 or more in valuables have coverage, the majority of our respondents don’t have jewelry insurance

According to The Knot, the average cost of an engagement ring in 2020 was $5,500. However, according to our survey, nearly two-thirds of people do not have insurance for their engagement rings and other valuables. Looking specifically at jewelry in the $5,000 to $10,000 range, where the average engagement ring falls, we discovered that 29 percent lack insurance coverage.

As expected, the percentage of people who said they didn't have insurance increased as the estimated value of the jewelry decreased. 85 percent of people with less than $1,000 in jewelry did not have insurance.

LowCostInsurance followed up with those who did have insurance coverage to see if some or all of their valuables were covered by the policy. We discovered that two-thirds of those with insurance coverage insured all of their jewelry under their policy.

Surprisingly, younger people — Generation Zers and millennials — had the highest rates of insuring all of their valuables, at 81% and 73%, respectively. When compared to baby boomer rates, these figures are 51% higher on average.

Overall, a person with jewelry insurance is more likely to insure their entire collection with the insurance policy.

Should I get insurance for my jewelry?

If you have valuables that are expensive or have sentimental value, you should consider adding jewelry coverage when purchasing home insurance or a renters insurance policy. Because of how inexpensive these additions can be, it makes sense in many cases.

However, some insurance companies will cap this additional coverage amount at $10,000, which may not be sufficient for many people. In this case, we recommend inquiring with your insurer about jewelry riders, also known as "floaters." Riders are optional coverages that can be added to a standard insurance policy to cover specific events. The floater would cover the insured item in the event of a fire, loss, theft, or damage in the case of jewelry.

Some insurance companies offer stand-alone jewelry protection insurance plans for people who don't have a homeowners or renters policy. These are policies designed specifically for jewelry, and they often have a higher premium than a floater add-on, but they cover all events and accidents that may occur with your items. These should only be considered if you have a sizable jewelry collection with high appraisal values.

Furthermore, when deciding on jewelry insurance, you should exercise caution because coverage varies across many of the major insurers. You should be prepared to answer, among other things, the following questions:

• How are my items appraised in order to determine their estimated fair market value and insurance value?
• How are claims handled following a loss, theft, or damage?
• Will the entire cost of the item be replaced, or only a portion of it?
• Is there anything in my policy or rider that I should be aware of?
• Will I be required to provide proof of my loss?

Using these questions, you'll be better prepared to ask your insurer about the specific policy it's offering — and thus better able to choose the best policy possible.