To insure or not?

[oneofus]

Long time lurker finally posting:

How do you decide whether or not to insure your e-ring / w-ring set?

Is it by how much their value is?

Would you insure them if their total value is around $5,000? Around $10,000? Around $15,000? Around $20,000?

Is it stupid to not insure my wedding set if it''s the value of a car?

 

[cinnabar]

There isn''t a "rule" about whether anyone should insure jewelry.

Who do you want to replace the item if it gets lost, stolen or broken? Do you want the insurance company to do that, or are you willing to pay for a new one yourself? Would you just write the item off as a loss?

The chances of an engagement ring being lost etc are a lot higher than your chances of winning the lottery, as various board members can attest.

Personally, I''d probably start insuring at about $1K value, but everyone has their own comfort level.

 

[denverappraiser]

Insurance is, by it's nature, betting against yourself. The insurance company is setting their rates so that, on average, they can pay out all necessary claims and still have some money left over at the end of the day. This means that, on average, you are better off without the insurance. The secret is in that averaging.

It's usually a good idea to buy insurance if the risk of a payout is going to cause you a financial hardship. It's easier for some people to replace a $10,000 piece of jewelry than it is others. In general, you want to insure against situations where you would describe a loss as a problem, not just an inconvenience. This difference will depend entirely on your financial situation.

The decision may change if you determine your risk to be significantly different from 'average'. If, for example, you only wear the piece once per year and the remainder of the time it's kept in the safe deposit box at the bank, you may decide to assume the risk yourself. On the other hand, if you wear the piece daily and you know yourself to be a bit of a ditz, you may want to insure it as quickly as possible. These issues are about your lifestyle and it's very difficult for the insurance company to assess them.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[joadma]

I have always had my e-ring insured and now my new ritani is insured as well! They are not nearly the value of a car like yours, but if they got lost I would want to shell out the few thousand dollars to replace them! The insurance is such a minimal cost, that to me it doesn''t make sense not to have it!

 

[soulsis]

It''s a preference. I have a clause in my home insurance for my ering...but no separate insurance. Why?

1) It''s too expensive. My ring isn''t that large and was appraised at $14000. To insure it per month is $38.00. That''s retarded!

2) How am I going to lose it? I take it off when I wash my hands by putting in my BRA! Then I put it right back on. When I am at home it is in the same spot I always put it. ALWAYS!! The only chance that I will lose it will be if I get mugged. And no person in their right mind really wants to deal with me...if you know what I mean!

That''s just my 2 cents. I am not really anal about my ring though. I love it, but honestly I am not attached to an object that way. If you are worried about it you should get it appraised. In the states I think it is easier to get insurance as well. The companies I called were like "Why do you need insurance???" One carat is a ROCK up here!!

 

[laney]

Well, no on ever PLANS on anything happening.

And I''m with what Neil posted above. If you can afford to replace it without much hardship - then it is probably ok not to take out insurance.

However, I had a freak accident recently with my center stone and THANK GOD I had insurance. It took care of everything and I have a new stone, with out worry.

So, I''d say if you don''t ahve 10,000 in savings.. and you have a ring that''s that amount -then get it done. It''s not that hard. Get your stone apprasised and send it to the same insurance company that provides you with Renters or Homeowners insurance... at the very least - and they''ll cover it.

The same goes if the ring is 1,000.

 

[soulsis]

Yes Laney, you are right. I don''t have the money to replace my ring easily. Maybe if I lost it that would be a reason for an upgrade. However, my insurance company told me that it doesn''t cover against damage. I thought that was gay....isn''t that the reason I want insurance?

 

[mrssalvo]

Date: 9/30/2005 12:36:32 PM
Author: soulsis
Yes Laney, you are right. I don''t have the money to replace my ring easily. Maybe if I lost it that would be a reason for an upgrade. However, my insurance company told me that it doesn''t cover against damage. I thought that was gay....isn''t that the reason I want insurance?

you should be able to add a scheduled rider to you home owners policy that will cover everything. I have mine with all state and it was only $200 per year. My diamond chipped and Allstate opted ot cash out or i''ve could have taken a loss in value due to damage. most regular home owners policy''s will only cover complete loss or if it''s stolen and then you need a policy report. i think a scheduled rider is worth it.

 

[soulsis]

Yeah...I just contacted my insurance company. They quoted me $3.00 on every hundred dollars my ring is appraised at. So that means I have to pay $450.00 a year!!! And that is with my discount policy structure because I have several types of "business" with them. Wow...that is expensive. I am better off taking that $450 and investing it so I can eventually get an upgrade!

 

[Scintillating]

There is a question?

If you can''t replace it easily without financial problems it''s important to insure.

Scintillating...

 

[aljdewey]

Date: 9/30/2005 12:56:06 PM
Author: soulsis
Yeah...I just contacted my insurance company. They quoted me $3.00 on every hundred dollars my ring is appraised at. So that means I have to pay $450.00 a year!!! And that is with my discount policy structure because I have several types of ''business'' with them. Wow...that is expensive. I am better off taking that $450 and investing it so I can eventually get an upgrade!

That sounds high. My rate for a cash- policy with one company was $1.70 per hundred; with my new company, it''s $1.50 per hundred.

 

[stretch4]

I agree with aljdewey. My insurance policy is a little less than $1.50 per hundred.

There are plenty of ways to either lose or damage your diamond/ring. Even if I was pretty sure that I would never lose it, I certainly am not sure that I won't damage it some way (i.e. slam it on a counter, in a door, etc.) Or what about if you hit a prong the wrong way and lose the diamond all together!?

There are just too many ways that I could lose or damage my ring or diamond for me to NOT get insurance.

 

[mrssalvo]

Date: 9/30/2005 1:35:46 PM
Author: aljdewey

Date: 9/30/2005 12:56:06 PM

Author: soulsis

Yeah...I just contacted my insurance company. They quoted me $3.00 on every hundred dollars my ring is appraised at. So that means I have to pay $450.00 a year!!! And that is with my discount policy structure because I have several types of ''business'' with them. Wow...that is expensive. I am better off taking that $450 and investing it so I can eventually get an upgrade!

That sounds high. My rate for a cash- policy with one company was $1.70 per hundred; with my new company, it''s $1.50 per hundred.

sounds high to me too...my rate is around $1.50 per hundred. i know some of the rates are based on where you live etc. but $3.00/$100

. maybe look into chubb or jewelers mutual...

 

[Dancing Fire]

Date: 9/30/2005 8:08:57 AM
Author: denverappraiser
Insurance is, by it''s nature, betting against yourself. The insurance company is setting their rates so that, on average, they can pay out all necessary claims and still have some money left over at the end of the day. This means that, on average, you are better off without the insurance. The secret is in that averaging.

It''s usually a good idea to buy insurance if the risk of a payout is going to cause you a financial hardship. It''s easier for some people to replace a $10,000 piece of jewelry than it is others. In general, you want to insure against situations where you would describe a loss as a problem, not just an inconvenience. This difference will depend entirely on your financial situation.

The decision may change if you determine your risk to be significantly different from ''average''. If, for example, you only wear the piece once per year and the remainder of the time it''s kept in the safe deposit box at the bank, you may decide to assume the risk yourself. On the other hand, if you wear the piece daily and you know yourself to be a bit of a ditz, you may want to insure it as quickly as possible. These issues are about your lifestyle and it''s very difficult for the insurance company to assess them.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

agree with Neil...
why buy insurance if you only wear the ring couple times per yr. for a $20k ring it will cost like $330 per yr. if you wear that ring 3X per yr that''s $110 per day.

 

[snlee]

I''m confused. If you add a scheduled rider to you homeowners policy to ensure your jewelry, do they only reimburse you if it''s STOLEN? Not damaged or lost?

To get insurance on jewelry for it being lost, stolen, or damaged, do you have to go through Chubb (or similar company)?

How much does Chubb charge per hundred? I know if matters where you live...so anyone know who lives in the bay area?

 

[mrssalvo]

a sheduled rider will cover every thing. if you don''t have the rider and try to claim damage on your ring with just regular home owners, that''s where the what they will cover becomes more tricky. It is important to have a very detailed appraisal on file with you insurance if they don''t have a cash out option. Allstate''s rider says they will replace with like kind. Laney and I both were able to cash out b/c because allstate couldn''t replace what we had and all to live up to all the detailed info in our appraisals. If allstate could have found ''like kind'' and made me happy, i would have been fine with that too. With my Whiteflash Eternity band, the apprasiasal states that is has 25 aca''s 3 point melee. so, the insurance company would have to replace it with Wf aca melee. i wouldn''t care if they cashed out, just as long as i end up with exactly what i lost...

 

[Dancing Fire]

Date: 9/30/2005 3:48:18 AM
Author:oneofus
Long time lurker finally posting:

How do you decide whether or not to insure your e-ring / w-ring set?

Is it by how much their value is?

Would you insure them if their total value is around $5,000? Around $10,000? Around $15,000? Around $20,000?

Is it stupid to not insure my wedding set if it''s the value of a car?

i''m one of those stupid person you''re talking about

can''t afford the insurance

 

[joadma]

I use Jeweler''s Mutual and my rate is about $1.65 per $100, and I live in NJ.

 

[Shay37]

Glad to see this thread. It reminded me to send my description of the new ring to my insurance agent. The coverage was still in place from the other ring. They were waiting for the new description to replace the old one.

I am glad I was covered as I don't have the money out of pocket to replace a ring like my last one or my new one.
If you want to take a chance that you will be one of the lucky ones, I can't tell you any different. If you suspect that you might have luck like mine, insure it.

Shay

 

[soulsis]

Remember that''s $3.00 Canadian....

This is just a rider onto my exsisting policy and it covers damage only. Loss or theft is covered under my policy anyways. The lady told me that if I want to insure it I have to file 2 separate appraisals, then wait about a month, then they will send me the forms to fill out. I went to look into an apprasial and they told me that they couldn''t give me an accurate one because the ring was already mounted.

The thing I wonder is that if the jewelery is covered against theft but not damage, what is stopping someone from claiming that they lost their ring when in fact they chipped it? Doesn''t make any sense to me.

 

[mrssalvo]

Date: 9/30/2005 3:34:36 PM
Author: soulsis
Remember that''s $3.00 Canadian....

ah, well that explains it. you guys do things a lot differently up there

 

[oneofus]

Thanks, I see your views. I know I should be insuring my rings when I had this nagging feeling when I posted this question. I actually had insurance for a year, and I didn''t renew a few months ago. My thought was that I was saving some $$$. But I think I will not be able to replace my set easily if anything happens.

 

[oneofus]

Date: 9/30/2005 2:42:39 PM
Author: Dancing Fire

Date: 9/30/2005 3:48:18 AM
Author:oneofus
Long time lurker finally posting:

How do you decide whether or not to insure your e-ring / w-ring set?

Is it by how much their value is?

Would you insure them if their total value is around $5,000? Around $10,000? Around $15,000? Around $20,000?

Is it stupid to not insure my wedding set if it''s the value of a car?

i''m one of those stupid person you''re talking about

can''t afford the insurance

Do you wear your set everyday? Do you worry sometimes about "things" that will happen to it?

 

[bettyboop]

Hi Oneofus,
Yes I wear my set everyday and I do worry more about banging my setting around more than anything else I''m not really a kltuz but since I''ve been wearing my set for about 9 1/2 mos I''m definitely more conscious of things I can bang into. For some reason I just have this fear that my diamond will pop out of it''s setting and i''ll look down at my ring and notice it''s gone and won''t be able to find it ... pretty scary nightmare I know but I recently changed over my insurance from Safeco to Chubb b/c of Chubb''s coverage and terms so that should help alleviate the nightmare

 

[fire&ice]

A few insurance companies will only cover theft. You need to check your policy. Also, rates differ from locale to locale.

Also, many policies cover jewelry items up to 1-1.5k without scheduling or paying any extra. You need to check your policy if this only pays in the event of theft.

 

[blumoon]

I could never replace my ring easily...maybe not at all! I added a rider on to my existing home owners policy. I have USAA and I think I am paying around $160 (?) a year. They will cover loss, damage...whatever could possibly happen. I feel like I can enjoy my ring and not worry about it so much.

 

[Dancing Fire]

Date: 10/1/2005 12:33:37 AM
Author: oneofus

Date: 9/30/2005 2:42:39 PM
Author: Dancing Fire

Date: 9/30/2005 3:48:18 AM
Author:oneofus
Long time lurker finally posting:

How do you decide whether or not to insure your e-ring / w-ring set?

Is it by how much their value is?

Would you insure them if their total value is around $5,000? Around $10,000? Around $15,000? Around $20,000?

Is it stupid to not insure my wedding set if it''s the value of a car?

i''m one of those stupid person you''re talking about

can''t afford the insurance

Do you wear your set everyday? Do you worry sometimes about ''things'' that will happen to it?

yes,my wife wears her set everyday.i think there is a type of policy were it covers all the jewelrys that you put on a list. in other words, lets say you have a $50k jewelry (his and her) collection and most of the time you & hubby only wear $20k worth, since most people don''t wear evey pieces they own at the same time. in this case, i would only purchase a $20k coverage.

 

[Tacori E-ring]

We have a seperate rider on my e-ring (I am guessing we will add my w-band after we get married) it covers loss and mysterious damage. Even if I loose it and it was considered my fault (swimming in a pool) they will cover it. I think it is a piece of mind. No one ever plans to have something happen to our beloved rings but we can''t plan these things. Laney is a perfect example of what can happen. Our insurance company required a written appraisel at anything above $5,000. (ours was above that but I thought that was interesting). I really think it is worth the money. I probably would even pay more just for the coverage. I guess I am just not a risk taker