Valuable Articles coverage, including Personal Article Floaters and Jewelry Insurance, has remained a stable sector of the Inland Marine market during the economic recession.
Insurance clients are still accumulating a lot of high-value jewelry right now, says Jan Weyhrich, Marine insurance analyst for State Farm—which runs a relatively small Inland Marine business keyed more toward Personal Lines.
"People are buying gems as an investment," Weyhrich says.
Over the last few years gemstone and metal prices have escalated—and consumers have noticed, Weyhrich says. It's an area where agents and brokers should take notice as well. The value of heirloom jewelry in many cases has increased.
The two top jewelry claims are theft and "mysterious disapperance," he says. Agents would be wise to ask clients—especially upper-middle-class or affluent customers—about new jewelry purchases or family heirlooms at their yearly renewals.
"There's a high possibility one could be underinsured if they have not updated their appraisal on jewelry," says Weyhrich.
Where a diamond engagement ring used to average $1,500 just a few years ago, they're now averaging $5,000. "A lot are considerably higher," he says.
Getting a newly engaged or married young couple to insure their diamond purchase can be a good starting point for an agent or broker to address future policy additions, Weyhrich notes.
"It may open up an additional line of business," he says. "It can be an area that some agents may not be really familiar with, but generally it can be a really profitable area."
State Farm has also seen a rise in Fine Arts coverage, particularly paintings, among high-end clients. But most consumers with disposable income he sees are investing in jewelry, Weyhrich says.
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