Perhaps you have heard that here at Cormier Jewelers in Southbridge we provide appraisal services for insurance needs. But what is an appraisal, and why do you need one?
We've all lost things we'd rather not lose. Who hasn't searched for their glasses, or their keys or important paperwork only to throw their hands up in frustration? We all know that these things can be replaced or reproduced with very little cost so we chalk it up as just a part of life. But what happens if you lose a valuable piece of jewelry? What happens if your home is robbed and they take all your jewelry? Replacing a large diamond or your entire collection of jewelry can be immensely expensive. And being robbed isn't just a part of life. It's a traumatic event that can make even the most optimistic of us despair. But there is something you can do right now that will help you tremendously in the event that you lose your diamond or your jewelry box is stolen from your home. You may think I am referring to homeowner's insurance. If so, you are only partially correct. And being partially correct can and will cost you a lot of money should you have a loss. If you have a loss, and those of you who have experienced a loss will no doubt agree, homeowner's insurance is not enough, in fact it can mean very little - unless you have riders on your jewelry.
What is a rider? A rider is a separate insurance policy on your "appraised" valuables that is part of your homeowner's insurance policy, but gives you added benefits for an added cost. So it costs a little extra to have a rider on your jewelry? Yes, but the benefits are well worth it. What does "appraised" valuables mean? In order to have a rider on a piece of jewelry, a qualified jewelry appraiser needs to provide you with a written appraisal on each piece you want to insure under a rider. This "appraisal" will provide a detailed description of the item(s) with number and types of gems, weights of gems, color, clarity and cutting of all gems, metal weights, design details and condition of the item(s) and an individualized replacement cost of the item(s). Pictures are also taken. Taking this appraisal to your insurance agent and requesting a rider gives you several important benefits.
The first benefit: If you choose, items insured with a rider are not subject to your homeowner's deductible. A homeowner's deductible is the amount you are expected to pay if there is a loss, and it can be $500, $1000 or more. That means if your $2000 diamond ring is lost or stolen and you do not have a rider on it, you could be paying $1000 or more out of pocket before your insurance company will replace it. But with a rider, there is no deductible. You are covered in full.
The second benefit: There are usually no restrictions as to where or how the item was lost or stolen. For example, if you gave your diamond ring to your sister to bring to the jeweler for repair and she lost it, you may not be covered for the loss under a standard homeowner's policy unless you had a rider for that ring. Most times the loss has to occur in your home for regular homeowner's insurance to apply.
Lastly, Most homeowner's policies have limits of insurance when it comes to items such as jewelry. If your policy's limit on jewelry is $5000 and you have $10000 in jewelry, you are not fully covered. A rider has no limit because you are paying extra for the rider.
So how much does it cost for a rider, and is it worth having a rider on all your jewelry? And what does a typical jewelry appraisal cost? A typical jewelry rider costs $12-$14 per $1000 of coverage. That means a $5000 diamond ring can be insured with a rider for $60-70 per year. Well worth the small expense in case of a loss. But not all jewelry should be covered this way. The rule of thumb is if the item costs less than $300 then perhaps the extra cost of the rider and the appraisal is not worth it. How much does an appraisal cost? The charge for an appraisals depends on the item(s) being appraised and the difficulty of the appraisal. A large gold chain or a single diamond solitaire is rather easy to appraise, requiring little time. This type of appraisal may run $28-$38. A high quality emerald and diamond ring with multiple gems takes much more time to appraise. These types of appraisals can cost upwards of $80. If you have any past appraisals or paperwork from the seller, these appraisal costs can be reduced considerably.
So if you have jewelry that you want to make sure is covered by your insurance company, bring it down to Cormier Jewelers in Southbridge. We will inspect and clean it, and discuss with you benefits of having your jewelry appraised so you can cover it with a rider. We will also tell you how much the appraisal will cost. You will thank yourself later if you suffer a loss.
A final note: Even if you have riders on all your jewelry, you may still not be covered in full if your appraisals are old and the values on those appraisals are too low. Make sure you appraisals are no more than 3-5 years old. If they are older than that then they need to be updated. At Cormier's we can update your old appraisals for you as well.
Shawn Cormier
Cormier Jewelers
42 Central Street
Southbridge, Ma 01550
1-508-764-7415
www.ecormiers.com
CormierJewelers@aol.com
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