5 Considerations To Help You Protect Your Jewelry

A client returned home from the grocery store to find that, in the 45 minutes they had been gone, someone broke into their house. They hadn't thought to set the alarm for such a short outing. Among the few items taken was their safe. An entire safe, dragged across the room, thrown down the stairs, and out the door. With it, tens of thousands of dollars in jewelry and other valuable possessions.

Sound unbelievable? This is actually a scenario that insurance claim teams have seen more than once. The following are five considerations we share with clients to protect their possessions:

1. Home Safes Are Not Equal

Many high-net-worth individuals are opting to store jewelry, especially frequently worn items, in home safes instead of safe deposit boxes.  We share these tips with our clients to make the selection, purchasing and installation of a safe easier.

First, consider the value of the items being protected. Clients can expect to pay anywhere from $5,000 to more than $25,000 for a high-quality safe. Second, weight is the No. 1 factor in determining a safe's ability to protect from theft. If the safe is being installed on a ground floor, the suggested minimum weight is 1,000 lbs. Third, there is no substitute for high quality materials. We advise our clients to consider nothing less than a 1/2-inch solid steel door with 1/4-inch walls. Fourth, look for a safe that has a UL rating for strength of at lease TL-15 or comparable, which means that a team of engineers working for 15 minutes using common hand tools could not crack it. Finally, install the safe in a spot that is out-of-sight as well as convenient. A master bedroom closet is often the first spot burglars look.

2. Careful and Timely Maintenance

Everyone is human; pieces may be unintentionally worn to the beach or loose claps may go without repair for one day too long. Avoid loss by having a professional inspect pieces, especially higher-valued ones, regularly and at first sign of damage.

3. Background Checks

We recommend that our clients conduct background checks on all domestic employees. All too frequently, thieves know exactly which entrances are not monitored by camera or where a spare key is stored.

4. Security While Traveling

For clients who travel with high-value jewelry, we advise them to hold the hotel room safe to the same standards as they hold their home safe. If they have doubts as to its security, they should ask hotel management to hold them in the hotel's master safe.

5. Proper Insurance Coverage

Some consumers may not realize that their Homeowners' policy does not offer enough protection for high-value items. Mass marketed insurers typically offer only $1,500 of protection and most insurers that cater to the high-net-worth cap coverage at $5,000.

In addition, an outdated jewelry appraisal could mean that you are underinsured, so even the 150% of value coverage offered by many insurers could be insufficient. Insurers typically increase coverage by 5% each year to account for jewelry value inflation, but this may not account for the market's actual movement. Appraisals should be updated every 3 to 5 years, at minimum.

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~ Uncle 'D'