You may not leave home with jewellery that is as elaborate or expensive as Elizabeth Taylor’s or Kim Kardashian’s. However, you can use their situations to understand why the right insurance needs to be in place when you travel.
In 1969, actors Richard Burton and Elizabeth Taylor purchased a 69-carat, pear-cut diamond, and Taylor wore it briefly as a ring before having it reset as a necklace. It was originally owned by Harriet Annenberg Ames, who was said to have sold it because she felt as though she couldn’t wear it in public for fear of being robbed and because letting it sit in a bank vault was a waste. And while Taylor may not have been afraid to show off the diamond, due to the terms of Burton’s million-dollar insurance policy, she could only wear it 30 days out of the year. The rest of the time it needed to stay in a secure bank vault, and when she did go out in public with it on, she must be accompanied by armed guards.1
While staying at a VIP apartment in Paris in 2016, Kim Kardashian was robbed and briefly held hostage at gunpoint. The perpetrator took an estimated $10 million in jewels, including her diamond engagement ring, valued at $4.49 million. While her insurance company paid out over $6.1 million to compensate her for the loss, they sued to get the money from her security team, saying they were negligent in their duties.2
Like Taylor and Kardashian, you need to make sure that you have enough insurance coverage for your valuable possessions and that you’re following the parameters in order to maintain full protection on the item. Here are a few questions to ask before you travel with your jewellery:
Do you have valuables coverage? In most cases, your home and contents insurance policy will not cover the full loss of an expensive piece of jewellery or watch. Look for a valuable articles policy that will not cap your limit and allows you to cover your full collection for their worth.
Is the coverage worldwide? Not all policies offer coverage overseas. Look for one that allows you to travel with your jewellery.
Is there a deductible? Some policies will provide coverage for most causes of loss – including “mysterious disappearance” – without a deductible.
Does it include loss in market value protection? Look for a policy that will pay for the reduction in market value, up to the insured amount, if the item is damaged and suffers a loss in market value as a result.
Does it include newly acquired pieces? If you plan to purchase additional pieces, you will want a policy that automatically covers your newly acquired jewellery if you already have jewellery coverage in place.
Do you have an up-to-date appraisal? When it comes to insuring your jewellery items, the more information you can provide to your insurance company, the better they can assist you if you lose or damage a piece of jewellery. Keep an up-to-date appraisal in a secured area, that includes the type of jewellery, what it’s made of, the gemstones used and how they are graded. Make sure the condition of the piece is included and check with your policy expert to keep pace with market fluctuations if you have a rare piece or large collection.
Are you taking safety precautions? Regardless of the jewellery’s value or the specific terms of the policy, always adhere to these general safety rules:
If you would like to find out more on how you can protect your jewellery, watches and valuable possessions , leave your contact details via the 'Contact Me' button below and our representatives will get in touch with you.
Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Singapore Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.
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