What happens if your valuable jewelry, watches or branded bags are damaged in a fire? This is how you can insure your luxury property to save yourself from financial heartache.
When we think of insurance, we remember to insure everything we need. This usually includes life, health, and major illness plans. We also need to take out mandatory insurance plans for specific circumstances, such as: B. a maid insurance and a car insurance.
Other types of insurance such as travel insurance and personal accident insurance can sometimes be seen as useful, although it is always better to be on the safe side and cover yourself against the unexpected.
When it comes to luxury goods, buying insurance that covers their value might not be high on the list. However, it can help with financial distress when such items are lost or damaged.
Why luxury goods need to be insured
Luxury items like your branded bags, watches, jewelry, gold, and collectibles are valuable possessions that are expensive to replace. For some items, you may not even be able to find direct replacements.
Fans of Lupine (a popular, captivating Netflix show about a gentleman thief) will remember that the key plot was the high insurance payout on the Pellegrini family’s precious diamond necklace.
Likewise, insurance for such items will help you cover the cost of losing those valuable possessions. You can use the refunded money to buy again or replace the product, or just keep the cash.
While some items can have irreplaceable sentimental value, it is understandably better to receive some form of compensation than nothing.
In addition to luxury items, you can also insure other expensive items such as electronics or even your fancy home office chair. This can be done in the form of a warranty extension. For example, when you buy AppleCare, you can get up to three years of protection for your Apple products.
Types of insurance available for luxury items
If you are someone who has these luxuries in your possession, here are some of the insurance plans to consider. We divide it into two main types of insurance plan: the item-specific and the generic home insurance, which covers all of your home contents.
1. Insurance plans specifically for luxury items
While home insurance may provide some coverage, there are usually caps on home insurance that may not cover the full value of your luxury item.
Here are some of the insurances available for luxury items such as jewelry, works of art, wine, collectibles, and antiques.
| Insurance type | Key Features |
| Valuables Insurance (Chubb) | Worldwide insurance coverage for jewelry, art, antiques, wine collections, manuscripts, silverware, musical instruments, postage stamps, sports equipment and more. In the event of damage, your valuable item will be replaced or repaired up to the insurance limit. You can also get compensation for a decrease in market value or opt for cash if an item is irreparably damaged or lost. |
| Jewelry Collection Insurance (Chubb) | This includes your rings, necklaces, bracelets, watches and more. Receive 100 percent of the insurance value of the jewelry, with no deductible or depreciation in the case of an insured total loss. The market value is determined from the start. This protection is given everywhere – at home or abroad. |
| Art Collection Insurance (Chubb) | In the event of a total loss or loss, you will receive 100 percent of the agreed insurance value for your works of art. You can choose to have your damaged part repaired, replaced, or receive a cash payment in the event of irreparable damage or loss. |
| ArtPlus from AXA | As a high-quality household contents insurance, ArtPlus offers specialized insurance for art and collectibles as well as buildings, household effects, jewelry and watches as well as personal liability. This insurance coverage is valid worldwide and covers your works of art during transport. AXA also offers a handful of other art insurance solutions for special needs. |
Note that these insurances can be named differently depending on the insurer. The premiums for these insurance plans are specific to you and depend on your insurance application.
2. Household contents insurance with high household contents coverage
One way to keep valuables in your house safe is to keep them in a safe. Aside from physical protection, homeowners should also get home contents insurance to repair or replace their property in the event that it is damaged by hazards such as fire, vandalism, burglary and more.
These items relate to typical household items like furniture, dishes, kitchen appliances, and electronics like your laptop. It can also contain items like jewelry, money, branded bags, watches, legal documents, and even frozen foods.
To protect your expensive belongings at home, you should look for household contents insurance with high coverage in the event of loss or damage to your household effects and valuables. This can range from $ 20,000 to more than $ 500,000. Some insurers like AXA and AIG even offer customizable covers that are suitable for homes with high quality items.
How do you choose home insurance?
How much coverage you need depends on how much the items in your home are worth. You can start by calculating the value of the items in your home, and even some items, such as: B. family jewelry to be valued.
Remember that there is usually a lower limit for your “valuables” claims for household effects. This can be, for example, a fraction of the sum insured for household items or a value limit of, for example, 7,000 USD per item.
In addition to coverage for household effects, you should also pay attention to the following:
- Cover required in case of loss or damage to the building or renovation
- Personal liability, i.e. how much you are insured in case something should happen to a third party in your house
- Alternative accommodation costs
This article was first published on SingSaver.com.sg.
