Insurance on my ering

[Deputy74]

Do you insure a ring for the price you paid or the price it was appraised at?

My ring cost X amount but was appraised at a much higher amount. Which one do I insure it at?

 

[lmurden]

The price the ring was appraised for.

 

[Deputy74]

That''s what I thought. My fiance already had it insured and I thought everything was A-OK. But I got to thinking about it and I know him very well so I asked which one he did. He got it insured for the amount he paid which was around 5 grand less than what it was appraised for. Can you change an ins policy once its already been done. And the guy at Allstate apparently told him if he got ins for the ring and it was below 10 grand it was one amount but if it went above 10 grand the ins was more expensive. So my fiance took the cheaper route but if the ring is stolen it doesnt help him in the long run.

 

[lmurden]

If you want to go through your home insurance then do so and call them and tell them that you want to insure it for the appraised amount. You might want to try and get it insured through Chubbs because they will cash you out for the appraised valued instead of replacing the ring.

 

[Deputy74]

Thanks for the suggestion. I''m gonna start looking into them now. I thought it might be better to go through a different insurer anyways since the first one gave him so bad advice. He has it on his home ins now but I''ll check Chubbs out.

Thanks

 

[Deputy74]

I just talked to my fiance and he said all he got insured was a dimaond ring for $9600. So basically since there isnt any details about the ring in the insurance they can replace it with something completely opposite of what I have.

AllState quoted him $148/year for anything under $10 grand and then it jumped to $500-600/year for anything over $10 grand.

I''m looking into Chubbs right now.

 

[OSU COWBOYS]

I just was at allstate and around 11300 insured its only 220 a year. just fyi.

 

[fire&ice]

Date: 12/21/2004 5:33:26 PM
Author: Deputy74
AllState quoted him $148/year for anything under $10 grand and then it jumped to $500-600/year for anything over $10 grand.

I''m looking into Chubbs right now.

Well, it might depend on your geographic location; but, I have my 3 carat -3.7 carat TW in a platinum setting insured for over 10k - I can assure you I do not pay anywhere close to 500-600 a year. If I recall correctly, one does pay a slight premium for over 10 or 15k - but it''s not a set amount - nor is it gouging like indicated.

In the end, insure with whom you feel comfortable with. But, these stats don''t add up.

 

[hoorray]

Insure it for a reasonable replacement cost if the policy is a replace/refund at their option policy. They will most likely replace it and it will cost them less than it cost you since they have more buying power. Thus, you can pay the premiums for the exact same coverage on the actual cost or on an inflated cost. I'd choose the actual cost with a small buffer. I'd also make sure the insurance company has all the information you have about the ring, including the sarin report, the appraisal, pictures, purchase receipt, etc so that you actually get something as close to what you have as possible if you suffered a loss.

edited to add: We pay just over $1/thousand covered from what I remember, and it is more than $10k through USAA. (USAA is only available to active and retired military and family of military tho.)

 

[RockDoc]

I would suggest you talk to their claims department and find out what their replacement companies would pay based on your appraisal report.

Hopefully it is very complete, as you can''t change it after you have a claim.

In the event of a loss Chubb usually cashes out, but if the customer want them to replace it they do. In the event of a claim it is the insured''s choice, not the insurance company''s choice.

There''s a lot here on other posts about this issue.... I suggest you read them and garner good advice from them.

Rockdoc

 

[RockDoc]

Date: 12/21/2004 4:23:16 PM
Author:Deputy74
Do you insure a ring for the price you paid or the price it was appraised at?

My ring cost X amount but was appraised at a much higher amount. Which one do I insure it at?

The possible reason for this is the appraiser is using a price you might pay in a store..... which is higher than internet prices, or stores who will be competitive with internet pricing.


There are different market levels that are addressed in the appraisal.... find out which one the appraiser used and why. Doesn''t make sense to insure it on a replacement type policy if in the even of a claim won''t pay that. The exception to this is Jewelers Mutal or other companies that INSIST the valuation be at retail.

In my opinion it is senseless to pay based on an amount that is higher than you paid. Theoretically, you could replace the item for what you paid for it. In the case of the insurance company replacing it, it could cost a little less.

What state are you in? That may have some bearing on this issue.

Rockdoc

 

[claimsjeff]

Opinions, opinions....another issue to this discussion is sales tax. My recommendation is if your state requires sales tax to be paid, then it should be included or subtotaled on the appraisal. Thus, if the item cost to replace is $5,000 and that''s your appraisal and that''s your insured value, the insurer will not pay more then the $5,000 limit to replace or cash out(depending on which option you go with).

Finally, keep in mind that prices continue to go up in many areas: gold, platinum, and princess cuts. If you dont'' keep your appraisals up to date you may be caught short regardless if you decide to go with a cash value or replacement policy. Inflation guards are good insofar that they are keeping pace with inflation......... Regular inspections and updated appraisals are the best way to keep peace of mind that prongs are tight and values are in line. Good luck!

Jeff A. Mills
Vice President Claims
Jewelers Mutual Insurance Co.