If you decide to splurge on an expensive piece of jewelry, it is crucial that you take the necessary steps to maintain and protect it. Not doing so can have very expensive consequences. The Department of Justice estimates that approximately $1 billion worth of valuable jewels are stolen every year. This figure does not even include lost, misplaced or damaged pieces. Because of the high risk and cost involved, it is important that you make sure that your coverage is current and up-to-date in the event your valuables are stolen or lost.

One of the first steps in making sure that your jewelry is protected is making sure that your pieces are properly insured and appraised. Appraisals are important because they help you figure out the kind of insurance you will need to cover the item or items in question. The best time to get your jewelry appraised is at the time of the purchase. Many jewelry stores include a written appraisal with all pieces they sell. If they do not, make sure you ask the salesperson to provide you documentation with as much information about the piece as possible. You will need to continue to get your jewels appraised every two to five years after purchase.

Precious metals and jewels often fluctuate in value over the years, and many insurance companies will not accept your claim if your valuations are too outdated. It is also important to make sure that a certified gemologist is performing the appraisal. A replacement cost appraisal (one in which the value, design and authenticity is verified and documented) is ideal. If you can get an endorsement for the appraised value, that is even better. An endorsement for the appraised value ensures that you are reimbursed for the full appraised amount in the event of loss or theft.

After you get your jewelry appraised, you will need to make sure that it is adequately insured. The level of coverage you should get depends on many factors; the value of the jewelry, where the jewelry is stored, whether or not you take your jewelry with you when you travel, and other factors. The most popular and recommended policy is the itemized coverage policy, also known as the valuable articles policy. The benefit in having an itemized coverage policy is that each piece of jewelry in your collection is individually itemized and valued. This is important because you will not have to worry about providing documentation for every single piece of jewelry you have in the event of a loss. When deciding on a policy, make sure that you that you have a clear understanding of which items and situations will and will not be covered. You also want to make sure that whatever policy you purchase covers lost and misplaced items (also knows as mysterious disappearance), breakage or damage, and jewelry that is stolen or lost during traveling.

Many people mistakenly believe that their homeowners or renters insurance policies will adequately cover their jewelry. While it is true that a renters or homeowners insurance policy will cover some of your items, this usually requires that you schedule every item in your collection, which costs more. If your jewels are not scheduled you will have to pay an expensive deductible in order include the jewelry on your policy. In addition, breakage and mysterious disappearance are usually not covered in most homeowners or renters insurance policies.