Reasons to Insure Your Jewellery & Gems

Jewellery pieces may hold more than just monetary value and may represent memories and emotional value. Every jewellery and gem owner should understand the risks of owning a high-value asset. You never know when an incident will lead to jewellery damage, loss or theft.

Jewellery owners should protect their assets; insurance is one of the best protections. However, many still believe that insurance is unnecessary and not worth it. Hence, the article will highlight the top reasons to insure your jewellery and gems and why it is worth it.

Reasons to Insure Your Jewellery and Gems

Most Attractive Asset to Criminals

Jewellery theft is one of the most common crimes worldwide. Criminals prefer to steal the asset due to the size of the assets and how easy it is to sell. Jewellery theft can occur on the streets and even in your own home.

Many people need to be made aware of how easy it can be to be mugged, snatched, or have your home broken into. It’s essential to be mindful of your surroundings in public and correctly store assets in your home to avoid jewellery theft. Storing in a locked safe or avoiding high crime areas can reduce the chance of theft and loss of jewellery and gems.

The rise of jewellery theft is one of the main reasons you should insure your jewellery and gem assets. Asset insurance will cover the value of stolen jewellery. The policyholder will need to provide a police report to ensure no fraud is involved. Theft could occur at any point, even if you are careful. The cover will help policyholders replace their jewellery and move on from the incident.

Easily Damaged or Lost

Jewellery can be fragile and delicate due to the attached gems or size. Along with theft, one of the worst things that could happen to jewellery is accidental damage or loss. When high-value jewellery is damaged or lost, the owner can feel hopeless and shocked when they see the price of repair or replacement.

Countless incidents can lead to severe jewellery damage or loss. Common causes of jewellery damage and loss include sudden impact against hard material, improper storage, chemical reactions, or misplacement. For instance, you could accidently smash it against a wall while running or misplace it on holiday.

The possibility of serious damage or loss is another reason to insure your jewellery and gems before it’s too late. Asset insurance will reimburse the cost of repairing or replacing the specific asset at market value. However, the insurance will not cover any damage due to wear and tear or any loss without a police report.

Loss Of Parts

Another unfortunate incident could be the loss of a single gem or valuable part. Many jewellery sets may lose significant value without that specific piece, almost as bad as losing the entire set.

The owner must try their best to find the piece. The few steps to help find the part or jewellery include retracing steps, contacting places you visited, checking clothes pockets and home floors and eventually filing a police report. Losing a piece of jewellery can be stressful and upsetting: it can happen to anyone and anywhere.

Fortunately, when you insure your jewellery with asset insurance, the stress and anxiety can be reduced. The insurance providers will take the entire piece with the missing part and reimburse you for the value of the complete jewellery piece. Even if the lost piece is found post-settlement, it must be returned to the insurance providers, and if the policyholder keeps it, they may be fined.

Expert Repair Services 

When jewellery is damaged, the first thing most people would do is to get it repaired. These costs can be extremely high and complicated depending on the specific jewellery. Each jeweller will provide a different price and outcome.

 It is very easy to pay too much or avoid repairing due to costs. The costs depend on the damage or loss; for instance, repairing a cracked gold ring will cost around HKD 2,000. It is essential to find experts who charge a suitable amount and provide the best service. No one wants to be overcharged or deceived due to a lack of knowledge and advice.

Insuring your jewellery with asset insurance gives you more than monetary benefits. The policy will help connect their policyholders with expert jewellers.

These expert jewellers provide the best services at a reasonable price. When policyholders use these recommended jewellers, the claim process may become smoother and quicker.

Limited Home Insurance Cover

Many of us store our jewellery at home as we believe our home is always safe. In the first half 2024, 684 Hong Kong home burglaries have already occurred. Even in a safe city like Hong Kong, break-ins can occur.

One of the first things criminals look for when they break in is jewellery. Burglary is just one of the risks that can cause jewellery damage or loss in your home. Home fires and natural disasters can damage the house and all the belongings, including the jewellery.

Home insurance covers the property and the belongings in the home. The coverage can protect jewellery, but with a limit, which may not be enough. Home insurance may not be the best individual coverage to protect your jewellery and gems, especially when the total value exceeds the limit.

Hence, it is always better to have asset insurance on top of home insurance to adequately protect your jewellery collection with a higher customisable limit.

When Should You Insure Your Jewellery and Gems?

Insuring your jewellery and gems is essential, regardless of their value or size. You can insure almost any piece if it meets specific policy requirements. The best time to insure jewellery is at purchase, as early asset insurance often offers better coverage. First, have the asset valued by an expert. Insurance providers recommend regular servicing to prevent damage and reduce wear. With coverage, you receive financial protection for repair or replacement without stress.

Insuring your jewellery and gems provides peace of mind, allowing you to enjoy your assets confidently.

To Learn More about jewellery insurance and protect your jewellery and gem collection, contact Red Asia Insurance.