While studies show that close to half of America’s baby boomers were homeowners by age 34, much of the Millennial generation do not own homes today. Reported reasons range from high student debt to affordability of housing, and more stringent lending practices. Some simply do not feel they need the living space. Or, they aren’t ready for a family where homeownership can be ideal. Insurance
The trend has driven a new uptick in specialty insurance, particularly for jewelry.
The Rise of Specialty Jewelry Insurance
Whereas traditionally, homeowner insurance policies offered some protection for these cherished items, the lack of homeownership among Millennials prevents the option. With engagement and wedding rings often starting at $5,000, many consumers have turned to private jewelry insurance to safeguard their jewelry investments. The trend is also being seen among those who have purchased or received keepsake jewelry items, such as graduation gifts, family heirlooms, and other favorites.
In fact, according to an internal survey by specialty jewelry provider BriteCo, 64% of millennials prefer to cover their jewelry using a separate specialized jewelry insurance policy in lieu of homeowner policies.
Millennial Homeowners Are Also Tapping In
The specialty jewelry insurance trend isn’t limited to those who have yet to buy a home. Many homeowners, including Millennials, Gen X, and Boomers, are opting for specialty jewelry insurance instead of solely relying on their homeowner policies. That’s because homeowners policies typically cap coverage of personal items at $1,000 or $2,000 and are subject to high deductibles as rates have increased over the past few years. Specialty jewelry insurance, in comparison, offers full protection for replacement, particularly in the instance of items being lost, stolen, or broken outside of the residence, such as during travel or other activities.
For third-generation jewelry and CEO of BriteCo, Dustin Lemick, the rise in specialty insurance isn’t surprising – particularly for fine and precious jewelry. Lemick has seen firsthand the issues that consumers face in safeguarding their jewelry investments. It played a key part in recognizing the need for better protection among consumers when he created BriteCo.
BriteCo combines jewelry and technology innovation to make the insurance process easy and efficient for consumers, offering free jewelry insurance estimates online, and comprehensive coverage in only a few minutes.
“The absence and limitations of homeowner’s insurance—and renter’s insurance as well—have left many Millennials without ways to protect their belongings, particularly their expensive jewelry,” said Lemick. “Many consumers are also unaware that their homeowner policies may not give adequate protection.”
Lemick advises consumers to make insuring their wedding and engagement rings, precious heirlooms, and other fine jewelry a priority. Costs can be very affordable, and it can be more than worth the expense should lose or damage occur.
“It’s heartbreaking to have your wedding ring or other cherished item lost or stolen,” added Lemick. “It’s truly a case where an ounce of prevention is worth a pound of cure.”
