’Tis the season for giving (and receiving), and jewelry is one of the more popular holiday gifts. However, the possibility of losing a beloved piece of jewelry is an unfortunate reality. Over $1.5 billion worth of jewels and precious metals are stolen annually in the United States, and only 4.7 percent of those items are recovered.*

Many people do not realize that most homeowners insurance policies will specifically limit coverage for jewelry. The value of wedding rings and an expensive watch would exceed those limitations, in most cases. To enhance your protection, insure high value jewelry via a private collections insurance policy and choose a provider that offers:

• Worldwide coverage. Many people wear watches and meaningful pieces of adornment frequently, as well as take beloved pieces on vacation.

• Immediate coverage for new acquisitions. Because jewelry purchases often are impromptu, some carriers activate coverage from the point of purchase and offer between 60 and 90 days to alert them of the item.

• Coverage for pairs and sets. If you lose a single earring or cufflink, there should be policy wording describing how the pair will be made whole, such as payment for the missing piece or compensation for surrendering the remaining item.

• Coverage for jewelry in a bank vault. Those who keep items in a bank vault can benefit from reduced rates for the superior security.

• Inflation protection. Unlike a painting, a diamond set in platinum will always have value, due to the global market for precious metals and gemstones. As prices for these commodities continue to increase, many insurance companies will stipulate an automatic annual inflation increase of 5 percent to 10 percent.

ADDITIONAL TIPS

1) Play it safe at home. Store jewelry in a safe and only remove it just before putting it on. Safes should be bolted into the structure of your home so they cannot be removed and broken into later. An Underwriters Laboratory listed safe that is rated to withstand a two-hour burn is optimal. For added protection, install a secondary safe in the master bedroom for frequently worn items. This can mislead would-be thieves under duress. Finally, conduct background checks on private staff. Unfortunately, many jewelry thefts are inside jobs.

2) Stay alert while abroad. Wearing jewelry in airports and on commercial aircraft increases the chance of loss and can compromise personal safety. Only take what is necessary for the trip. Jewelry should be worn or kept on your person at all times (never in a checked bag). Treat jewelry as if it were a wallet—never let it out of your sight. When traveling, keep a list of the items you are carrying and leave a copy at home. Upon arrival, always store jewelry in the hotel safe or safe deposit box, and protect pieces from damage in a padded jewelry portfolio.

3) Ship with caution. Shipping should be a last resort, as the risk of damage or loss is elevated greatly. Only use specialized jewelry shipping services, not standard overnight services. A specialized jewelry shipper is also recommended when purchasing items on vacation or moving them to a seasonal residence. When possible, identify local jewelers for all repairs, maintenance and appraisals.

^*www2.fbi.gov/ucr/cius2009/data/table_24.html
AIG is a world-leading property-casualty and general insurance organization servicing more than 70 million clients around the world. Through its Private Client Group, successful individuals can access innovative protection for homes, excess liability, automobiles, private collections, yachts and more. Private Client Group also offers supplemental services designed to minimize property damages, safeguard fine art and other collectibles, and bolster family safety.