Retail sales associates in fine jewelry are in the enviable position of making dreams come true. They also can help customers keep those dreams alive.
Whether it’s helping a future groom choose the perfect engagement ring or assisting a couple resetting their 50-year-old wedding rings into new designs, a sales associate is present during many monumental decisions.
Once customers make a purchase, however, many jewelry owners don’t know the importance of protecting their purchases. Retail salespersons can assist customers in making educated decisions about insurance coverage. Remember: helping customers understand how to purchase insurance coverage is a service.
Myth #1 – There is no need for additional insurance because jewelry is automatically covered under homeowners policies.
Frequently, homeowners (HO) insurance policies cover only a small dollar amount for jewelry loss—unless there is an attached floater or rider. A separate jewelry-specific insurance policy, on the other hand, may offer broader coverage. This is important in the unfortunate event of a loss, as jewelry-related losses may affect HO policy premiums or eligibility.
Myth #2 – HO coverage includes damage or loss, regardless of the reason the jewelry is missing.
Most HO policies do not cover mysterious disappearance. This is a critical coverage element. At Jewelers Mutual Insurance Company, mysterious disappearance is the second most common reason for jewelry-related losses. Jewelry-specific insurance is more likely to cover loss, theft, damage, and mysterious disappearance. It’s important to check the policy specifically for these coverages.
Myth #3 – In the event of a claim, the insured can use the jeweler of his/her choice to handle the replacement.
This frequently is not true. Many insurers require individuals to work with a particular replacement company. This may not be an acceptable option, especially if the customer has an established relationship with a jeweler. If customers would like to work with their own jeweler, they should look for coverage that allows this option.
Myth #4 – If jewelry items are appraised when purchased, there is no need to have them re-valued in the future.
Most reputable insurers require an appraisal to set coverage values. This is because an appraisal provides a complete description of the jewelry, along with the current retail replacement value. Like most other items, jewelry values may change over time. It is important to have re-valuations so customers have adequate limits of insurance. Over-valued appraisals cause higher premiums; undervalued appraisals leave customers underinsured at the time of loss.
Annual inspections are important not only for assessing current replacement value, but also to reduce potential losses by checking for damage, wear, and tear (such as loose stones, faulty clasps, or worn prongs). These visits benefit everyone: they protect the consumer and provide an opportunity for the retailer to offer repair work. In addition, they set the stage for future sales for the jeweler. JQ
Since 1913, Jewelers Mutual has been the only insurance company in the U.S. to specialize only in jewelry insurance. Their Personal Jewelery policies cover mysterious loss and allow insureds to work with the jeweler of their choice. Exclusively endorsed by the American Gem Society and Jewelers of America, the company has also consistently earned an A+ Superior rating from A.M. Best Company. Customers can learn more by calling (800) 558-6411. They also can get a free quote or apply online at www.JewelersMutual.com.
Photo: Courtesy of Bruner | 
