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Question on getting ring insurance

gonzalcx

Rough_Rock
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Apr 13, 2015
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14
I just received my ring from JamesAllen and it looks gorgeous. The appraisal that came included with the ring was significantly more expensive than the purchase price.

How accurate are these appraisals - or do you all think its better for me to get it appraised by a third party? I found a place in town that offers this service for $95.

Also, included with my purchase was a brochure for Jewelers Mutual. I think getting the ring insured is a must but not sure how to go about this. Do you all simply add it to your homeowners policy? or do you think a company such as jewelers mutual is better?

I am a newbie at this but I want to protect this investment.

thanks!
 

diamondseeker2006

Super_Ideal_Rock
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Jan 11, 2006
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58,342
Best to keep it separate from homeowners in case you ever have to make a claim. You wouldn't want your homeowner's premium to go up because of that. I would see if JM will accept your sales receipt if it gives details of what you purchased and attach a copy of the diamond grading report to that. If they won't, then I would contact James Allen and tell them you bought a ring from them at retail prices and you would like the appraisal to show exactly what you paid. I think we as consumers need to start insisting on this, because no one gains but the insurance company when the value is inflated. I have never used an inflated value, but my insurance accepts sales receipts (with diamond report number, etc.) with the grading report.
 

denverappraiser

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I second Diamondseeker on both points. If you think the paperwork JA sent you is inaccurate, call them up and talk to them about it. The value conclusion on an insurance appraisal should be the expected price to replace the item with another of like kind and quality, at retail and on a particular date. Given that you just bought it, at retail, you've got a pretty good place to start. I wouldn't say it's out of the question that it should be higher or lower than what you paid but the appraiser should be able to explain their thinking (it might already be in the fine print of the report by the way. Read it before you call).
 

gonzalcx

Rough_Rock
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Apr 13, 2015
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great suggestions! I know that the paperwork came with a pamphlet for Jewelers Mutual so I will start there :twirl:
 

denverappraiser

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Start with JA and/or the appraiser who signed the report. Then go to the insurance company. Not the other way around.
 

Rockdiamond

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denverappraiser|1430057065|3868023 said:
I second Diamondseeker on both points. If you think the paperwork JA sent you is inaccurate, call them up and talk to them about it. The value conclusion on an insurance appraisal should be the expected price to replace the item with another of like kind and quality, at retail and on a particular date. Given that you just bought it, at retail, you've got a pretty good place to start. I wouldn't say it's out of the question that it should be higher or lower than what you paid but the appraiser should be able to explain their thinking (it might already be in the fine print of the report by the way. Read it before you call).

Neil- are consumers better off going with a secondary insurance company if they have homeowners insurance?
I was under the impression that it's less expensive to add a rider to an existing policy- I'm grateful for this thread to learn. A lot of folks ask about insurance
 

JoshuaNiamehr

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Rockdiamond|1430065132|3868073 said:
denverappraiser|1430057065|3868023 said:
I second Diamondseeker on both points. If you think the paperwork JA sent you is inaccurate, call them up and talk to them about it. The value conclusion on an insurance appraisal should be the expected price to replace the item with another of like kind and quality, at retail and on a particular date. Given that you just bought it, at retail, you've got a pretty good place to start. I wouldn't say it's out of the question that it should be higher or lower than what you paid but the appraiser should be able to explain their thinking (it might already be in the fine print of the report by the way. Read it before you call).

Neil- are consumers better off going with a secondary insurance company if they have homeowners insurance?
I was under the impression that it's less expensive to add a rider to an existing policy- I'm grateful for this thread to learn. A lot of folks ask about insurance

Ive gotten quotes so I can give a better opinion on the matter as it frequently comes up. In New York, State Farm and Perfect Circle were just about the same. I know from dealing with personal property insurance with State Farm (not jewelry though) it wasnt exactly the easiest experience in the world. My specialty insurance experiences have been much better.

I had a client who lost a ring and working with JM/Perfect Circle was very very straightforward and easy. They made the client whole within a week. It was for the full replacement value. So they paid out whatever was necessary to fully replace the diamond to our spec/standard.
 

denverappraiser

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There are advantages and disadvantages to both.

Advantages of homeowners:
1) It's easy. You've already got a relationship with the company. You know who to call and it's usually a very straightforward process to add a rider for jeweler.

2) The company is mostly making their money on your other business, like your home, cars and so on. If they annoy you over a jewelry claim they have a lot more to lose than just your jewelry insurance business. This is an incentive for them to go above and beyond at claims time.

3) It's easy to just forget it. The bill usually gets paid through your escrow and you don't have to think about it unless you need it.

Advantage of stand alone policies:
1) It's NOT tied to your house. Insurance claims activity is recorded in what the insurers call the CLUE database. A jewelry claim against a homeowners policy is a homeowners claim. Too many of those will get your homeowners policy cancelled, which is a violation of your mortgage contract among other headaches. 'Too many' often means only 2 or 3. File a single jewelry claim and you're halfway there. If you tick off a standalone company and they cancel you, it's annoying, but not nearly as painful. Waive goodbye and find another company.

2) The claims people and underwriters are tied into jewelry. Insurance folks are expected to be experts on everything from autobody work to roof repairs to collectible figurines. There's lots of opportunity for confusion at claims time. Jewelry specialists tend to understand jewelry a bit better and I think it makes the claims process go more smoothly.

3) It's harder to just forget it. It's a bill, and when you get it every year you automatically consider the issue of whether you should continue it, tweak your policy, or pay it. It's a good habit to pay at least a little bit of attention to these things or they tend to get out of hand. That's a trap with all of those auto-pay bills.

In most markets costs are about the same but there are definite exceptions. It's worth checking. Overall, I tend to recommend the standalone policies for the reasons above but the big players, by far, are the homeowners companies.
 
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