Should you Insure your Jewelry

(475 Words)
Many people choose to insure their jewelry. You will pay a regular premium to the insurance company in exchange for the jewelry to be covered under some plan. The payment amount varies and is based on the replacement cost or the retail cost of the piece of jewelry. You may pay it monthly, yearly or at a different rate. The coverage of the jewelry plan can range as can the limitations. There are both advantages and disadvantages to insuring your jewelry.
Advantages
Of course the largest advantage of insuring your jewelry is that you will be covered if something happens to it. You may not be able to afford to replace the piece of jewelry if you were to lose it without such an insurance plan. This may be especially important if it is a very valuable piece of jewelry, such as an engagement ring. If you have a theft and all of your jewelry gets stolen, then you will be able to get it back and not just have this huge loss that you may never be able to recover.
Many people like to have a jewelry insurance plan for peace of mind. If you do not have your jewelry covered, then you may constantly worry about losing it. You may be afraid to wear the jewelry out and may refrain from wearing it just because of this. If you have an insurance plan, you may simply not worry about it and be able to enjoy your jewelry wherever and whenever you want.
Disadvantages
Many people end up losing more than they ever get by insuring their jewelry. Of course, if you never lose anything then you will never get any money, but you will have been paying the premiums month after month and year after year. These can add up substantially as time goes on and can even end up surpassing the amount that you would have gotten if you had lost the jewelry. Financially, you may be better off if you do not insure your jewelry.
There are often a lot of limitations to insurance policies. For instance, you may think that your jewelry is covered and then realize when something happens that it is not covered for that particular thing. Also, you may be limited in the recovery. For instance, some plans only replace the jewelry when instead you would rather get the money for it and be able to replace it yourself. Of course, many pieces of jewelry are valuable because of the sentimental value and obviously you cannot get that back.
The decision of whether to insure your jewelry will be based upon the jewelry you have and its value, your personal characteristics and the plans available to you. Many people choose to insure specific pieces of jewelry, such as those that are very expensive like an engagement ring.