Most insurance policies charge for coverage based on a dollar amount per hundred dollars of coverage. Actuaries employ reference files that provide average costs of replacement for different levels of coverage on different kinds of items.

Therefore, the premium is usually based upon the insurance company’s cost of replacement, and not on the appraised value. There are different types of insurance policies and coverage. A Full Value Replacement Policy (Agreed Value) will give you 100% of the appraised value if you decide to cash out. Under an Actual Cash Value policy, you will receive only the insurance company’s cost of replacement, as determined by the actuary at the time of loss if you decide to cash out. The FVR policy premium will only be slightly more than an ACV policy. Chubb, Traveler’s and Safeco are a few that offer the FVR policy. You should check into it. This may hold true with other personal property as well as jewelry.


You may not have adequate coverage on your jewelry due to communication between your agent and yourself. Some of the more important questions to ask are as follows:

1- Do I have “scheduled” or “unscheduled” coverage?

If unscheduled, you will have limited coverage and usually a deductible.

4- Can I go to whomever I choose to make a replacement?

In most cases, only if it is the same cost as it would be for the insurance company.

2- Is the coverage “all-risk”, or are there limitations?

Scheduled coverage is generally all-risk, which can cover partial loss, damage and mysterious disappearance.

5- Am I able to replace a half-pair of earrings or cuff links?

Only with specific coverage in the policy. It should be noted in the appraisal.
Antiques, custom and sentimentally important pieces should be considered.

3- If I choose to “cash out”, will I receive the amount of the assigned value?

Only if you have a full value replacement policy. Most policies are actual cash value policies. You will only receive the insurance company’s cost to replace.

6- Can I save money by increasing the deductible?

Yes. The more the deductible, the greater the savings. A couple of small claims could cause cancellation. It’s wise to think about just covering a major loss and not making claims for insignificant losses.

In most cases, only if it is the same cost as it would be for the insurance company.Jewelers Mutual Insurance has a policy available for $20 per $1,000 up to $15,000 and $25 up to $30,000 with no deductible. (L.A. County, other counties are less).

It is important that you select an appraiser with strong credentials or you may not be advised about many options that are available to you for your protection, as well as many other questions you should ask your agent.