Renaissance Insurance Brokers is an affiliate partner of the global broking network Brokerslink and the first Cypriot Brokerage in Lloyd’s of London, the world’s famous insurance market for unique and special risks ranging from super yachts and private jets to unique works of art from the world’s finest collections.

Renaissance Insurance Brokers’ team of professionals analyse clients’ risks through and develop individual insurance programs, most of which are unique in the Cyprus insurance market. The company’s clients include not only large companies, professionals and financial institutions, but also private clients and their family offices who want to protect their assets and their way of life globally. In this article we will cover Jewellery& Valuables Insurance, its common issues and basic characteristics, and provide guidance on how to insure them properly. 

COMMON PROBLEMS

Your jewellery is more than just something you wear. It may be your engagement ring, a necklace passed down from your grandmother or a gift from a special someone. Every piece of jewellery has a sentimental value and a history behind it as it is tied to memories of a special time and place in your life and can last forever… if it is properly insured!

It’s easy for jewellery to go missing. Apart from theft, many people have the tendency to take them off to wash their hands, put on lotion, shower or go swimming. While many homeowner’s insurance policies do deal somehow with jewellery, it is unfortunately considered a “non-essential” household item.

When it comes to insurance, jewellery is most commonly insured under homeowners’ insurance. Most insurance companies make a distinction between ‘contents’ and ‘valuables’ in your home. ‘Valuables’ include jewellery, watches, furs, items made of gold and other precious materials, works of art and collections such as stamp collections. However, if not specifically named on the insurance policy, some of the most valuable assets in your home may be unprotected. Even if you have a comprehensive insurance policy covering your house and furnishings, it doesn’t automatically mean every item under your roof is insured.

Standard homeowner’s policies commonly have the following limitations of cover:

• The scope of coverage is usually limited to specific perils; for example, fire, earthquake and burglary. Hence, accidental damage or mysterious disappearance are usually not covered.

• They usually include limits per item on contents coverage; high value jewellery pieces or just one valuable item may be enough to exceed those limits.

• There are limits on the total amounts covered, typically inadequate for a large collection of jewellery items or other collections of valuables.

• The value of covered items may be subject to depreciation, although the value of gold and precious stones has increased during the past years.

• In the event of damage, a deductible will likely apply. Such deductible may be too high on valuables.

• Replacement cost for itemized pairs or sets is often not covered when one item only is damaged.

• Coverage is static in your home; on the other hand, jewellery and valuables have a risk when they are worn or during travelling.

A SHORT GUIDE FOR INSURING JEWELLERY & VALUABLES APPROPRIATELY

If the level of coverage within a homeowners’ insurance is inadequate to cover your valuables, then it would be advisable to consider purchasing a separate coverage or an add-on to your existing homeowners’ policy.

It is essential to look for the following when seeking to enhance your homeowners’ insurance policy or invest on a policy specifically developed for your jewellery and valuables:

• Coverage for all types of jewellery and valuable collectibles in your possession.

• Broad, flexible cover for all perils including accidental damage, with a suitable deductible.

• Worldwide protection, so your jewellery and valuables are protected even if they are away from home or if you are purchasing jewellery pieces from abroad.

• Automatic coverage for new acquisitions.

• Coverage for items on transit, when loaned to a relative, or on consignment to a third party e.g. jeweller or art gallery and exhibition.

• Value-added services to complement your coverage and help you reduce the likelihood of damage or loss.

• Regular appraisals because the jewellery market is volatile. Prices for certain stones or gold can change from year to year. Inflation can also change the value of your jewellery.

• Protect an entire collection with blanket coverage or itemize your individual pieces by determining upfront the value of your items.

BEST PRACTICE ON MANAGING YOUR JEWELLERY & VALUABLES RISK

When it comes to jewellery or valuables, covering the emotional part in case of a loss is difficult, but a specialized insurer that has a deep understanding of the risks involved, can properly advise you on how to insure your treasured jewellery and valuables and secure the loss of their value. Also, the risk of minimizing the loss by following some common sense best practice would be advisable.

Points to consider are as follows:

• Consult a trusted specialist insurer to secure confidentiality.

• Enhance the coverage with the option to lend the jewellery.

• Include Entrustment of the valuables as part of the coverage.

• Obtain a tailormade insurance for jewellery together with fine art collection (Specie insurance).

• Keep copies of all your valuable items’ receipts, appraisal paperwork, and photos of your safe.

• Avoid traveling with irreplaceable or extremely valuable jewellery.

• Install a safe to store your jewellery in when you’re not wearing it or store them in a safe deposit box at the bank.

• Appraise your valuables at frequent intervals, e.g. every three years.

OUR APPROACH TO INSURING JEWELLERY & VALUABLES

At Renaissance Insurance Brokers, we recognize that jewellery is carefully selected or has sentimental value passed down through generations. Such valuable items though have unique insurance needs, and such needs require unique attention and expertise. To truly protect your Jewellery and Valuables you need the right combination of coverage and sound insurance advice. Through direct access to international, specialist insurers and our ‘quality-first’ attitude, we can ensure a discreet and personalized service with emphasis on confidentiality, sound risk management assessment, and expert advice for insurance solutions that will protect everything you love and worked hard for.

Anna Charalambous

Private Client & Specialty Manager

RENAISSANCE INSURANCE BROKERS LTD

Tel: +357 22 311 662

www.rnbrokers.com

[email protected]