Simply Explaining Insurance #86- Agreed Upon Value

There is a particular way to make sure your jewelry is covered properly on your insurance policy. If you have a small amount, many times it is covered in the base home policy. For example, the policy I offer can come with $5000 total, up to $1500 per piece.

Anything over that amount, you want to have scheduled on the policy using a jewelry floater. Imagine a diamond ring having its very own policy. Inside of that policy, you can decide if you want the ring covered for replacement cost, or an agreed upon value. What’s the difference?

If you choose replacement cost, we will replace the jewelry to the exact specs that we have on the appraisal. You will get that piece of jewelry back. We have relationships with jewelry wholesalers though, where we can get the jewelry back at a lower cost. So if you paid, $10,000 for a ring, we can get it for say $7,500.

If you choose agreed upon value, we will get you the $10,000 back and you can repurchase the piece of jewelry on your own.