(ARA) – Has your jewelry box become a treasure chest? People
collect silver, gold, platinum, and other precious metals for
several reasons. For many, a jewelry collection of any kind has
enormous sentimental value, having been passed down from generation
to generation, with pieces symbolizing milestones in life. Others
collect jewelry and coins as an investment, one that is much less
volatile than stocks.

No matter why you possess these metals, your passion (or
investment) has recently reached a peak in value. This increase in
value is a trend that is expected to continue across several
precious metal markets.

In the past few years, metal prices have been on a steady climb.
Gold and platinum values have doubled in the past five years, while
silver has tripled. In December 2009, gold reached $1,200 per
ounce, a figure that has been on a steady and consistent climb. To
the average consumer, this means that a family heirloom jewelry
collection could be worth substantially more now than it was
appraised for just a year ago. But if something were to happen to
that collection, would insurance cover the current value?

“Consumers who collect and appreciate fine things are often
aware that it is important to have their valuables appraised every
few years,” says Don Soss, vice president of personal insurance at
Fireman’s Fund. “However, the jump in the value of metals has
subsequently created a gap between what consumers have insured
their jewelry collection for and what it is actually worth.”

Experts agree that it is important to have a collection
appraised to determine its current value. But equally important is
to have insurance that covers the current value, not just the last
appraised value. “Jewelry and coin collection values have really
skyrocketed in the last five years, leaving many consumers
vulnerable to a potential catastrophic loss if their insurance is
limited to an outdated appraisal value,” explains Soss.

Of course, with any family heirloom or fine jewelry, there is
the sentimental value to protect in addition to the market value.
Insuring a collection for its financial worth makes sense, but it
is equally important to work with an insurance agent or appraiser
who will offer guidance on how to properly store and care for
jewelry to protect it from theft or damage.

“We understand that the emotional attachment to a jewelry piece
is just as important as the actual value. Make sure your insurance
policy includes preferred pricing with a highly regarded appraisal
service, and expert advice on protecting a valued object or
collection,” says Soss. “We also work with our customers to have
damaged pieces restored to their original splendor, and work
closely with law enforcement to have stolen pieces found and
returned to the rightful owner when possible.”

What steps should consumers take to ensure that they understand
the current value, and protect their jewelry collections
accordingly?

1. Account for and take pictures of each piece of jewelry. In
the event of loss or theft, this will expedite the claims
process.

2. Keep a copy of the appraisal, along with photos, away from
the actual jewelry or coin collection. That way, if the collection
is lost or stolen, your paperwork is not.

3. Keep your collection in a safe, dry place, away from the
elements and out of view of common visitors to your home. A
fire-proof safe is ideal. Ask about favorable pricing (credits) for
keeping it in a vault, etc.

4. Have your jewelry collection appraised regularly – especially
after a reported increase in metal or gem value. In the current
market, jewelry and coin collections should be re-appraised every
two years.

5. Ask your insurance agent to recommend a reliable, trustworthy
appraiser.

6. Talk to your insurance agent about what policies will best
protect your collection. Jewelry policies (floaters) offer no
deductibles, higher limits on theft and cover more causes of loss
than typical homeowners policies, such as accidentally losing an
item (mysterious disappearance).

Following these tips will not only ensure that your collection
is adequately covered by your insurance plan to its current value,
but will also allow you to quickly expedite a claim in the
unfortunate case of loss or theft. Properly caring for your
collection, both physically and as a financial asset, will allow
you to enjoy it for years to come.

Courtesy of ARA Content