I have a collection of vintage Chanel jewelry. It’s made of glass, faux pearls, and base metal, but it’s worth $15,000 on the secondary market. It was stolen. My insurer denied the claim for the full value, stating: “This is costume jewelry. We pay for the materials (glass/brass).” They offered me $200.
Key Takeaways
- Market Value > Intrinsic Value: High-end costume jewelry (Chanel, Dior, Miriam Haskell) trades on brand and scarcity, not gold/diamond weight. Standard insurers struggle with this.
- “Jewelry” Definition: Some policies define jewelry as “items made of precious metals or stones.” If your policy has this definition, your brass/glass Chanel pieces might be classified as “Contents” (clothes) rather than “Jewelry,” which actually helps (no jewelry sub-limit).
- Appraisals are Still Needed: To prove the $15,000 value, you need a market appraisal or recent sales receipts. You cannot rely on the “it feels expensive” factor.
- Brand Name Coverage: You need a policy that recognizes the “Brand Premium.” Agreed Value is the only safe harbor.
The “Why” (The Trap)
The trap is “Material Composition.”
Insurance adjusters use calculators: “30 grams of brass = $0.50. 10 glass beads = $5.”
They do not factor in the “CC” logo premium unless the appraisal explicitly supports the collectible value.
If classified as “Jewelry,” it hits the $1,500 sub-limit for theft. If classified as “Clothing/Accessories,” you might get full coverage under your general contents limit (subject to deductible).
The Investigation (My Analysis of “Fake” Real Jewelry)
I checked how to insure high-fashion bjoux.
The “Contents” Strategy
- The Argument: Argue that since it contains no precious metal, it is not jewelry under the policy definition. It is a fashion accessory.
- The Benefit: It falls under your main Personal Property limit (often $100k+), avoiding the jewelry cap.
The Scheduled Strategy
- The Method: Schedule it on a floater with an appraisal.
- The Cost: You pay premiums (~1.5%) on $15,000.
- The Benefit: Guaranteed payout without arguing about definitions.
Wax Insurance (Collectibles)
- The Verdict: Excellent for this. They insure “Collectibles,” which includes fashion/handbags/costume jewelry. They use market data, not melt value.
[IMAGE: Photo of a vintage Chanel gold-tone necklace with faux pearls, next to an insurance check for $200]
Comparison Table
| Classification | Coverage Limit | Valuation Method |
| “Jewelry” (Unscheduled) | ~$1,500 | Material Cost |
| “Contents” (Unscheduled) | Policy Limit | Replacement Cost |
| Scheduled Item | Agreed Value | Market Value |
Step-by-Step Action Plan
- Read the Definition: Look at your policy “Definitions” section. How is jewelry defined?
- Keep Receipts: Vintage dealer receipts are vital. They prove market value.
- Use “Collectibles” Insurance: If you have a lot of this, insure it as a collection (like baseball cards or art), not as jewelry.
- Photograph the Logos: Ensure photos clearly show the maker’s mark (e.g., the Chanel plate on the back). This proves authenticity.
FAQ
Does The RealReal appraisal count?
Yes, a valuation report from a reputable reseller is often accepted for market value.
What if a faux pearl peels?
Wear and tear. Not covered.
Is it covered if I sell it?
Once you hand it to a buyer/consignor, coverage usually ends. (See Consignment article).