Boston Gem Laboratory
Are You Sure You're Insured?
- Homeowners/Renters Policies: no schedule required, policy limit usually $1,000 to $1,500 with deductible of $500; theft is covered, however, losing a diamond in a ring is not (unscheduled)
- Unscheduled Upgrades: coverage is for fire and theft subject to a deductible, usually with a minimum per item of $1,000 to $1,500 up to the total limit of the policy; limits are generally $2,500 or $5,000.00
- Unscheduled Limitations: coverage may exclude; mounting or stone damage, partial loss (diamond falls out from your ring) and mysterious loss
- Named Perils: coverage occurs if a loss is in this category, such as theft, if you lose the stone in your ring, no coverage
- Open Peril: coverage occurs for a loss unless the policy specifically states certain exclusions, more coverage than named perils
- Scheduled Property: personal endorsement for jewelry items requiring an appraisal, usually with an "open peril" clause or "all risk"
- Loss Valuation: insurance company owes you only the value of your jewelry or the replacement of like kind and quality
- Retail Cost: insurance company does not owe you the retail cost or your perceived value, only the value of the jewelry; mark-ups may be high and jewelry appraisals are often inflated
- Actual Replacement Cost: policies are generally for replacement which allows the insurance company the option of replacing the jewelry based on their cost to replace, not your insured value; detailed descriptions and photographs are essential