The Ultimate Guide to Insuring Your Precious Sapphire Jewellery
As many as 40% of people with an engagement ring don’t have insurance to protect it.
Whether you have an engagement ring or another piece of sapphire jewellery, you’re wearing one of the world’s most valuable gemstones. They (and you) deserve the right protection.
Sapphire jewellery insurance is an important aspect of owning jewellery, and lumping your jewellery in with your home insurance isn’t always the best approach.
In this guide, we demystify jewellery insurance so you can choose the right cover for the most sentimental items you own.
From “mysterious disappearances” to “all-risk coverage”: Understanding jewellery insurance
There are a couple of options available to you when it comes to jewellery insurance: Stand-alone (separate) cover and cover that’s lumped in with your home contents insurance.
Insuring your jewellery separately comes at a higher premium, but when you do so, you’re using a specialist jewellery insurer. So, you’ll receive a higher standard of cover and if the worst does happen, you skip the pitfalls and scare stories that often come with home insurance.
In most cases, home and content insurance doesn’t cover “mysterious disappearances”. In other words, circumstances where your jewellery goes missing and you can’t get it back. Even if the disappearance isn’t a mystery (i.e. you know you lost your sapphire engagement ring in the sea), it’s classed under this category in the insurance world.
It’s also worth knowing what “all-risk coverage” involves, in case you find a jewellery insurer offering this. Essentially, it means the insurance company has to specify areas where you’re not covered. Any circumstance that isn’t on the list is insured.
Why sapphire jewellery insurance is worth its weight in gold
Sapphires aren’t just high in monetary value. These tough stones are often passed throughout generations and come with enormous amounts of sentimental value, too.
Here are just some reasons why sapphire jewellery insurance is a good idea:
- Sapphires are one of the most durable natural elements in the world. But they’re still not invincible. Your sapphire can be damaged (and the metal that holds it certainly can).
- No matter how tough it is, your sapphire is still at risk of theft, loss, and damage from accidents or natural disasters. (In 2017, a home was burgled every 3 minutes in Australia.)
- Insurance provides peace of mind, which is invaluable when a piece means so much to you.
How to get your sapphire jewellery insured
1. Get your sapphire jewellery appraised by a professional. If possible, take your original receipt, gemological certificates and any photographs you have.
2. The expert will examine your jewellery and provide a document detailing its value.
3. You can use online comparison sites to find the right jewellery insurer for you. Here at Sapphire Dreams, we provide insurance through Q Report and Centrestone, and can vouch for their expertise in sapphire jewellery insurance.
4. Choose whether to insure individual pieces of jewellery or entire collections. Insurance companies will be able to provide advice here.
5. Whenever you buy new sapphire jewellery, you can transfer existing coverage to make sure it’s protected. Just contact your chosen insurer to find out how.
What factors affect sapphire jewellery insurance premiums?
A quick guide to help you understand jewellery insurance premiums (the amount you pay each month for protection).
1. Jewellery Type
The quality of your sapphire jewellery matters. Consider factors like colour, clarity, cut and carat weight, that drive the value of jewellery up or down. They have the same effect on premiums.
Whether your sapphire is set in gold, platinum or another metal will also play a role in calculating premiums.
2. Storage and Security
Storing and safeguarding your sapphires properly can help to lower premiums. For example, use high-quality safes and install a burglar alarm if you don’t have one already.
Geographical location also matters. Postcodes are evaluated by risk, and postcodes deemed to be lower risk can lead to a considerable reduction in your premiums.
3. Wearing Behaviours
How often do you wear your sapphire jewellery? Some insurers calculate premiums based on wearing frequency, and items aren’t always covered if you’re abroad. Be sure to check this!
What to look for in a sapphire jewellery insurance provider
The number of jewellery insurance providers out there can make the whole thing overwhelming. To help you choose the right provider (and the right insurance plan), ask yourself the following questions:
- Do I need worldwide coverage? If you travel a lot, look for a provider that includes international cover.
- Does the provider offer automatic coverage periods to protect any newly purchased jewellery?
- Can you get a discount to cover sets or pairs of sapphire jewellery under one plan?
- Are you covered for inflation and jewellery appreciation?
- Does the provider work with a reputable jeweller to deal with repairs and replacements?
- Are you aware of the exclusions in the policy? Some common exclusions include wear and tear, intentional acts,
and war.
Maintaining your sapphire jewellery insurance
Keep your sapphire jewellery insurance working for you.
We recommend booking regular appraisals (every 2-3 years) and making sure to update your jewellery policy to reflect any changes in the value of your pieces. Every time you buy or are gifted a new piece of jewellery, don’t forget to report this to your insurance provider.
If something does go wrong and you need to make a claim, preparation helps streamline the process and get the best outcome. It’s best if you have a recent valuation, but if not, receipts and photographs are a good second.
Like all insurance types, if you do make a claim, this could cause future premiums to go up.
Smart savings: Tips to reduce sapphire jewellery insurance costs
We’ve already lightly touched on ways to keep your sapphire jewellery insurance costs down, but no one wants to pay more than they have to. So, here’s a summary of ways to protect your possessions for less:
- Implement reliable home security systems.
- Bundle policies to receive a potential discount.
- Increase deductibles to lower the premium (this is the amount you need to spend before the insurance company pays out for a claim).
- If possible, reduce the frequency of wear and be mindful of where you wear your jewellery.
- Ask your provider about loyalty discounts for long-term policyholders.
- Of course, sometimes you need to make a claim. However, a history of no claims can reduce costs.
Protect your valuable pieces
Adequate jewellery insurance lets you wear your jewellery with confidence, knowing you’re covered if the unexpected happens.
When a piece is expensive and highly sentimental, it makes sense to obtain quality insurance.
Sapphire Dreams can provide insurance through Q Report and Centrestone. Just contact us on +61 1800 228 668 for more information.
Until then, explore our collection of sapphire jewellery to find your next precious piece.