There’s lots of bling in the air now that Valentine’s Day is over. Ladies — and some gentlemen — are flashing diamonds like backstage passes. And there’s no shortage of information on how to insure all of this new jewelry.
But when it comes to insurance, what many jewelry buyers want to know is, “Is it worth it?”
Here are some questions to help determine if spending the money on jewelry insurance is right for you:
Mary Ann Hawthorne, who inherited a diamond from her grandmother a couple of years ago, says she didn’t even think about insurance until it was retrieved from a safe.
“When I saw it and realized how large it was, I knew I needed to get it insured,” the Sandy Springs resident says. “It was just over a carat, maybe a carat and a half.”
Hawthorne says she pays $81 a year to insure the ring and encourages others with family heirlooms to do the same. “It’s not that expensive,” she says.
Raymond Evans, a State Farm Insurance agent in Alpharetta, says your emotions can reveal whether you should insure a piece of jewelry.
“If you have something that you really cherish and you’re apprehensive about wearing it because you might lose it, you’re probably not [going to be] as apprehensive if you know you can replace it,” he says.
One-of-a-kind pieces are essential to insure because they’re usually more expensive, says Evans. It could be difficult to recover them without a proper appraisal and insurance.
“Typically, [for] all custom-made jewelry you have an appraisal. So if something does happen, your insurance company can send you back to the jeweler” to recreate it, Evans says.
Anna Pritchett’s husband bought her a modest engagement ring when he proposed.
“We got married in law school and were poor,” the Atlanta resident says. “We upgraded it on the tenth anniversary of our engagement in 2005.”
She says the couple bought a separate insurance policy for the new ring because it was worth much more than the $2,500 coverage under their homeowners insurance. It was also worth more than they were willing to pay out of their checking account.
But Pritchett stresses you can find a deal on insurance — just shop around.
“We switched and now we’re paying for a car, house and the ring all separately, plus an umbrella policy,” Pritchett says. “It’s a little more than our car insurance was with [the first company].”
Evans stresses that insurance is a unique decision for everyone.
“For one person a $1,000 ring is expensive,” he says. “Some people go as high as $5,000, $10,000. Anything you feel that you can’t afford to lose, I would insure it.”
So is it worth the extra money?
“It’s one of those rainy day-type things,” Pritchett says. “It’s not a bargain until you need it. What’s peace of mind worth to you?”
– By Lauren Davidson, Atlanta Bargain Hunter