5 reasons to look for the right jewellery insurer

Jewellery and watches continue to be top collectibles, as people buy online

Since 2009, the fine jewellery and watch market has seen a steady overall increase and is expected to see greater growth thanks to e-commerce. That may be, at least in part, because auction houses are now actively using online engagement and social media as part of their sales strategy. As evidence of this, Sotheby's reported nearly 50% of bidders in the luxury category were new to the auction house in 2022¹ and Phillips similarly saw first-time buyers across online-only and live auctions reach 47%². In addition, the pre-owned luxury watch segment is expected to grow by 75% by 2030 fuelled by Millennials and Gen Z³.

Brands are growing in popularity⁴

Luxury jewellery outperformed other luxury categories in 2021 and continued to post strong sales growth in the first half of 2022. In fact, branded jewellery items accounted for 80% of diamond jewellery sales by value in the U.S. in 2021, and 74% of all jewellery was acquired by high-income (US$150k+) women in the U.S. 

More women are buying for themselves 

Younger women, in particular, are buying diamonds for themselves more than ever before. In fact, more than half of millennial women say they are the primary buyers of jewellery in their households. This may be due to their established careers, tendency to purchase more for non-traditional occasions and buy before they get married, since many are getting married later than previous generations. And with women said to control more than US$20 trillion in global spending and make up 85% of all brand purchases, female jewellery self-purchasers are a pivotal growing market⁵.

Only a small minority of jewellery purchased is insured

With a diamond engagement ring costing an average of US$6,000⁶, it makes sense for you to have a way to replace your ring or other jewellery if lost, misplaced, or stolen. But, surprisingly, a vast majority of jewellery purchased is left uninsured.

1. If something happens to your jewellery, you'll want to be able to replace it.

The right insurance can replace your fine jewellery and watches if they are stolen, lost or misplaced. Some policies will replace a pair of earrings, for example, if only one has been lost, and pay a replacement cost of up to 150% of the initial insured amount if the item has increased in value.

2. Your homeowner's insurance may not cover your jewellery.

You may think that your homeowner's policy will cover you if your jewellery is stolen, lost or misplaced. That may not be the case. Typical homeowner's policies only cover jewellery that is stolen, not if it is lost or misplaced. And most have a maximum limit, so if your jewellery is valued at an amount higher than that, you won't be able to replace it with a similar item.

The right insurance policy, specifically for jewellery and other valuables, will provide "all-risk" coverage for most causes of loss, with no deductible. That means, if you break an item, lose it, can't find it, or it's stolen, you'll have coverage so you can purchase another one exactly like you had.

3. You don't need a current appraisal in all cases.

While it may be helpful to have a high-quality appraisal for your fine jewellery, a current appraisal is not necessary with some insurance companies. Some premium insurance companies don't require an appraisal unless your individual jewellery item is valued at over US$100,000. They just need a good description of the piece and an estimated value. That makes getting the right coverage easy. They also provide automatic coverage for newly acquired items, so you don't have to worry about adding each new piece to the policy the same day you buy it.

4. With the right insurer, getting your claim payment is a smooth process.

While you may think getting a claim payment for a piece of expensive jewellery will be a hassle, that's not true for all insurance companies. Chubb provides hassle-free claims service, day or night, no matter where you are in the world. We will issue payment for a covered loss within 48 hours of settlement and will let you decide whether you want to keep the money or repair or replace your item at the merchant of your choice.

5. Protecting your jewellery isn't just about the right insurance.

Getting the right protection to fit your needs is important. But it takes more than a good policy to select the right piece, keep it safe, and make sure it's repaired correctly if damaged. The right insurance company will not only provide you with pricing and coverage options to fit your needs and lifestyle, but will also have additional risk management resources you need.

For example, one company can help you find quality appraisers and jewellers, locate hard-to-source gemstones, and provide security assessments to help you ensure your jewellery is as safe as possible when in transit and in your home.

With the markets for jewellery and watches seeing continuous change, it's more important than ever to protect your valuables and ensure that they can be replaced if they are stolen, broken, lost, or damaged. Chubb's Masterpiece Valuable Articles coverage can provide you with superior protection, unparalleled claim service, and greater peace of mind.

For more information, please contact your agent or broker or click here to find out more.