How Do You Define Replacement? 

Your homeowners insurance might cover your earrings as scheduled personal property, and you might think you’re covered if something happens to one of your jewelry pieces, and it will be replaced, but not all insurance companies have the same coverages. Varying policies have different claim settlement methods that can be confusing. We will go over some of these differences and provide some examples.

Replacement Cost or Actual Cash Value

Receiving total compensation for your lost valuables has its trade-offs. That method is called replacement cost value, or RCV, and it can be expensive. On the other hand, there’s actual cash value or ACV. This policy is much more affordable because it usually has low rates. However, you typically do not get full reimbursement because the insurance subtracts depreciation from the price you initially bought the item. Each option has its pros and cons, but you would be better off with a full article replacement policy.

Completely New or Repaired

An insurance company specializing in necklaces and other precious items can give you back a perfect duplicate of your original piece. They will also be the ones to find someone to repair it or do it themselves. That saves you time on having to look for a quality professional. It is an additional benefit over reimbursement; you do not have to spend so much energy searching for that article after getting your check. It might have been a one-of-a-kind piece, and therefore, the jeweler may no longer be able to replicate. Insurance Peacock does not offer replacement or repair. Upon settlement of a claim, you are provided with a check to compensate for your loss.

Scheduled or Blanket Coverage

With scheduled coverage, both you and the insurance carrier agree on the value of each piece of insured jewelry. The jewelry is listed with the agreed value on a ‘schedule’ or official list of items. If a loss occurs, the claim is easily settled because there is no dispute over the value and no additional valuation documents need to be provided. Blanket coverage has no list of covered items and no agreed values. In the event of a loss, the insured needs to prove the value of the item. Blanket coverage is also subject to per item limits, meaning that each item is only covered up to a specified amount. If the jewelry is worth more than the per item limit, it should be scheduled.

Most Insurance Covers Theft

Theft is a common cause of loss and Insurance Peacock has you covered.

Global Coverage

If you travel, you must find an insurance company that covers your jewelry anywhere you go on vacation. Unfortunately, this feature is not always available on standard policies, which is why you must check the policy language. For example, they might only have specialty coverage available for residents from countries. or the company might not financially protect your articles if they were damaged or stolen in certain places. The coverage available through Peacock is worldwide, so bring on the Mediterranean cruise you have been wanting to take!

Lost Stones

The tiny gems in your necklaces and earrings can sometimes fall out. That is not always indicative of the quality of an article because accidents happen. Some companies can cover for that, though homeowner’s insurance policies are less likely to do so. The most common loss settlement for lost stones is replacing the stone.

Misplaced or Lost Jewelry

It is easy to accidentally leave an item behind somewhere, especially if it is small. For example, you might have taken off your ring to wash your hands but forgot to put it back on when you left the public restroom. Even though the loss is unintentional, it can be tricky to get coverage because some insurance policies exclude this type of loss. 

Accidental Damage

There are all kinds of ways you can unintentionally impair your articles. For example, your necklace can get caught on something, and the chain breaks. The gem on your ring cracks because you accidentally hit it against a hard surface. Like theft and loss, inadvertent damage is a common occurrence. As such, you can expect an insurance company to cover these kinds of situations. However, you should still make sure that they financially protect you in that event by contacting them.

For a policy that covers your jewelry, giving you peace of mind, contact an agent for coverage through Insurance Peacock. Peacocks’ policies provide the broadest coverage in the marketplace offering worldwide coverage.