Shopping for jewelry can be an overwhelming experience—especially when presented with so many options! Jewelry warranties, Extended Service Plans, Jewelry insurance, etc.
We’re here to simplify the process and give you a straightforward answer. Jewelry warranties are not usually worth it on their own, especially if you are purchasing high value fine jewelry. Some warranties offer great maintenance services; however, the best overall protection for fine jewelry is having your pieces insured.
Jewelry warranties are important for making sure you extend the lifetime of your jewels and keep them in tip-top shape—while comprehensive jewelry insurance is what you actually need to protect you from theft, loss, and damage. The two proponents go hand-in-hand for optimal jewelry maintenance and protection.
What is a Jewelry Warranty?
Every jeweler or jewelry shop has their own variation on a Jewelry Warranty– each with their own terms and coverage. As a whole, the most common elements covered under jewelry warranties are:
- Replacement of lost or damaged diamonds or gemstones up to a certain value
- Damage due to the jeweler’s negligence
- Damage due to manufacturing defects
To be eligible for the warranty you must comply with certain rules:
- Inspecting the piece at regular intervals, typically every 6 months
- Conducting any repairs needed at each inspection (exclusively by the jeweler’s in-house repair people)
- Unusual damage or accidental mishap will nullify most jewelry warranties, as defined by the jeweler
What Is An Extended Service Plan for Jewelry?
Some Jewelry warranties require you to have extended service plans in order to maintain your jewelry piece. Just like warranties, service plans vary from shop to shop, however the most common services offered under these plans are:
- Jewelry Cleaning
- Ring sizing
- Refinishing and Polishing
- Earring Repair
- Chain Soldering
- Stone Setting
- Restringing Pearls/Beads
- Rebuilding Prongs
What’s great about extended service plans and jewelry warranties is how they keep your jewelry’s maintenance top of mind for you well after purchasing. Just getting your diamond ring cleaned every 6 months can make a world of difference in quality and how long the ring lasts.
When a diamond ring, for example, is cleaned and inspected under a loupe regularly, you are more likely to find any potential issues like weakening prongs, cracks, etc. – which will help you alleviate those issues well before they turn into bigger issues like losing a diamond or gemstone. As high quality as fine jewelry is, it is still extremely delicate—especially pieces like rings or bracelets that are worn on the hands and take regular beatings on a daily basis.
When Do I Need Jewelry Insurance?
Before you go out and purchase jewelry insurance, a jewelry warranty or extended service plan, ask yourself these questions:
- Am I buying fine jewelry or fashion/costume jewelry?
- Is my jewelry item’s value covered under my standard homeowner’s or renter’s insurance?
Renter’s or Homeowner’s Insurance usually covers fine jewelry up to a certain value, subject to your policy’s deductible and stated limits on unscheduled personal property. You can get full coverage for higher value jewelry by purchasing scheduled personal property coverage — which is an insurance policy extension that covers specific listed items.
The other choice you have is to insure your jewelry through a company that specializes in jewelry insurance. These jewelry insurance companies usually offer more comprehensive coverage than a standard homeowners policy. For example, these policies may even go as far as helping you recreate a lost jewelry piece or repairing a damaged one.
When making a decision to either go with a jewelry warranty, jewelry insurance, or both, make sure to ask your insurance agent what kinds of events are covered and to help you fully understand your policy’s limitations. Additionally, find out what the optional warranty from the jewelry store covers. Overlapping coverage with insurance is pointless. However, many times the warranty will offer maintenance services that insurance alone does not and together they can fill in each other’s gaps.
How Much Does Jewelry Insurance Cost?
The cost of Jewelry Insurance will obviously depend on how much your jewelry piece or overall collection is worth. The rule of thumb on how much to pay for jewelry insurance is between $1-$2 for every $100 of your item’s replacement value. So, for example, if your diamond tennis necklace is worth $6,000, you may find yourself paying approximately $60-$120 per year in insurance fees.