Do we all buy insurance for our diamond rings?

[HappyFish]

I don''t normally take my rings off except for bed time. Should I spend $380-$400/year to insure my diamond ring? This is more than my life insurance premium.

 

[neatfreak]

This is very very easy.

If you were to lose or break your rings, could you replace them without feeling the pinch financially? If the answer is no, YOU NEED TO INSURE.

If the answer is yes, then you can afford to take the loss and insurance isn''t needed.

 

[chrono]

Another simple question to your answer:
Can you afford to replace your diamond rings without feeling the pinch should it get lost, stolen, chipped or damaged?

If the answer is yes, then no insurance is needed. If no, then you are better off with insurance.

ETA,
Neatfreak, we posted exactly the same answer at almost the same time.

 

[Regular Guy]

After 13 years, the diamond in my wife''s ring was suddenly gone.

Did she did maintenance over the years...no. Would that have made a difference...possibly.

 

[oldminer]

Insurance companies make money offering jewelry insurance. There is some merit in insuring valuable items such as jewelry in that the risk is spread over a large population and the premiums are often paid for years before a loss might happen. Truthfully, insuring "things" which are not life and death in importance is totally optional and a decision on how you spend extra funds. When I owned thousands of jewelry items in my old business inventory, I bought some limited insurance. I knew that I would never lose the entire lot at once since I spread it all over the USA with other sellers. The familiy jewelry we carefully lock up. In my 38 years of marraige, my wifea and I have not lost anything more major than a few hundred bucks. Having never paid for any presonal jewelry insurance, I came out way ahead. The premiums would have had me pay all over agaion for the jewelry by now. So, I was lucky and came out okay. You may know your risk is different since I am used to keeping jewelry safe. You may be more prone to losing things.

I tell young couples that insurance in the first year of ownership is smart. You are just getting used to wearing the ring and who knows if you are lucky or sloppy. One year of premium protects you in case the diamond falls out and becomes lost, too. I always urge people to get enough medical insurance, disability insurance, liability insurance, home owners ot tenant's insurance BEFORE worrying over jewelry coverage. It is a matter of prioritization for most of us. If you are in the upper income range where you can just "do it all", then you probably can either afford any premiums you want or to go without insurance and become self insured when it comes to jewelry. The other coverages I mentioned are far less "optional".

No one "needs" to buy insurance, but knowing the risks and consequences one makes a decision. Its pretty silly to buy insurance and whine about the cost of the premium. It is just as silly to knowingly decide to be self-insured and to whine about a loss. Make an informed choice and take the inherent consequences in stride. It all may seem important right now, but in the overall scheme of things, jewelry insurance is just a minor bump in the road.

 

[Jenna51580gr]

Date: 12/4/2007 1:00:15 PM
Author:HappyFish
I don''t normally take my rings off except for bed time. Should I spend $380-$400/year to insure my diamond ring? This is more than my life insurance premium.

I am in the insurance business and I will honestly tell you need to insure your engagement ring especially the first year. I have had several friends loose the center stone or had the ring stolen the first year they had their engagement ring.

 

[lyra]

Do we all buy insurance? No. But I sure do, and would highly recommend it. To me it''s just a necessity for a little peace of mind. Life is stressful enough, I gladly pay the premiums.

 

[Maisie]

We have insured my ring against accidental damage and theft. We couldn''t afford to go out and buy a replacement.

 

[dolphingirl22]

I would take a look at the thread titled "please help me replace my rings" thats reason enough to have insurance.

 

[Rhea]

I don''t insure mine. If I lost it we could afford to replace it, but probably wouldn''t. Insurance was too much considering what was paid for the ring in the first place for us.

 

[FireGoddess]

It''s not only about not taking them off so they don''t get lost...it''s about the stone chipping or becoming damaged in an unforseen accident too. Or being stolen. Basically, the rule of thumb has already been mentioned - if you can''t afford to replace them, then insure them. If you can afford to replace them, or wouldn''t feel bad about not being able to replace them, then you don''t need insurance.

 

[HollyS]

Depends upon the price and quality of the center stone and setting. If it was less than $1K and the quality is B&M store average, don''t bother. If you have invested hard earned money in an expensive piece of jewelry, absolutely carry insurance on it.

 

[oldminer]

Please keep in mind that jewelry is unlike many othe things you might choose to insure. People put a tremendous amount of sentimental value into the engagement ring or wedding band and insurance only covers the financial side, not the emotional one. If you can afford to replace a lost ring or even if you carry enough insurance, it won''t be the same ring, but a different one.

I see the loss of something with large sentimental value as partially uninsurable. Yes, you can come out okay financially, but people often are devastated by the loss for years. This isn''t the way I''d feel about it, but I''ve had a lot of contact with people who were truly upset over even an insured loss. I do sympathize with such a situation, but there is no coverage for that type of problem.

 

[Rhea]

Date: 12/4/2007 3:51:00 PM
Author: oldminer
Please keep in mind that jewelry is unlike many othe things you might choose to insure. People put a tremendous amount of sentimental value into the engagement ring or wedding band and insurance only covers the financial side, not the emotional one. If you can afford to replace a lost ring or even if you carry enough insurance, it won''t be the same ring, but a different one.


I see the loss of something with large sentimental value as partially uninsurable. Yes, you can come out okay financially, but people often are devastated by the loss for years. This isn''t the way I''d feel about it, but I''ve had a lot of contact with people who were truly upset over even an insured loss. I do sympathize with such a situation, but there is no coverage for that type of problem.

This is how I feel about my wedding band. It''s beautiful and could never be replaced but I don''t insure as it cost around £450 and really can''t be insured by any place I''ve found for even a semi-reasonable price. I''d be able to replace it about every two years for what I''d pay in insurance so I simply don''t insure it but I''d bawl like a toddler if I ever lost it.

 

[tberube]

WOW, that''s a HIGH premium!

wait - you probably have a bigger diamond.

*scratches head*

HECK YEAH it''s worth it! That is, unless you''re loaded enough that replacing it wouldn''t hurt your wallet. And even though you hardly ever take it off, things can happen. What if your stone falls out or you''re robbed or something??

 

[Diamond*Dana]

I think that insurance is smart, especially if you are wearing it everyday! We just have my e-ring and anniversary ring insured via home owners rider and it is enough for me.

 

[door knob solitaire]

If you are asking advice from someone who has experienced...or is "CURRENTLY" experiencing the regret of no insurance. Well, I say you are reading the right post. As stupid as my story is, there may not be an insurance policy that would have covered it anyway...but yes I still wish I had a policy.

I have a long story...if you aren''t familiar with it...here it is in a nutshell. My loose 2 carat stone got tossed in the trash, rubbish, garbage. It is gone gone. Yadda Yadda Yadda. Heading out with check book in hand to re buy what was already bought...it a tad too nutts for me to do. Yes, I can afford it. No, I won''t go with out food or shelter...the point is I just don''t to spend it...again.

My rationale is I should be getting something different...say a pair of form fitting sport seats, 6 speed transmission and abs brakes...and also wearing my ring. Not just one. Arggh.

So, I say the little amount you have to pay a year...do it. Do it. DO IT. Make your next extra purchase a sweet little air cooled roadster with 18" wheels...and wear your insured jewelry while driving off into the sunset!

Or you could end up like me...with a decision of either or. Under a cloud of grey skys..no sun in sight. Boo Hoo. Whaaaa Whaaa. §

 

[HappyFish]

Date: 12/4/2007 1:42:41 PM
Author: oldminer
Insurance companies make money offering jewelry insurance. There is some merit in insuring valuable items such as jewelry in that the risk is spread over a large population and the premiums are often paid for years before a loss might happen. Truthfully, insuring 'things' which are not life and death in importance is totally optional and a decision on how you spend extra funds. When I owned thousands of jewelry items in my old business inventory, I bought some limited insurance. I knew that I would never lose the entire lot at once since I spread it all over the USA with other sellers. The familiy jewelry we carefully lock up. In my 38 years of marraige, my wifea and I have not lost anything more major than a few hundred bucks. Having never paid for any presonal jewelry insurance, I came out way ahead. The premiums would have had me pay all over agaion for the jewelry by now. So, I was lucky and came out okay. You may know your risk is different since I am used to keeping jewelry safe. You may be more prone to losing things.

I tell young couples that insurance in the first year of ownership is smart. You are just getting used to wearing the ring and who knows if you are lucky or sloppy. One year of premium protects you in case the diamond falls out and becomes lost, too. I always urge people to get enough medical insurance, disability insurance, liability insurance, home owners ot tenant's insurance BEFORE worrying over jewelry coverage. It is a matter of prioritization for most of us. If you are in the upper income range where you can just 'do it all', then you probably can either afford any premiums you want or to go without insurance and become self insured when it comes to jewelry. The other coverages I mentioned are far less 'optional'.

No one 'needs' to buy insurance, but knowing the risks and consequences one makes a decision. Its pretty silly to buy insurance and whine about the cost of the premium. It is just as silly to knowingly decide to be self-insured and to whine about a loss. Make an informed choice and take the inherent consequences in stride. It all may seem important right now, but in the overall scheme of things, jewelry insurance is just a minor bump in the road.

Thank you for such a thorough analysis and wonderful write up. It pretty much sums up everything about insurance, does it?

OK, I will buy insurance for the first one year to start with even though it is not an original ering..It is an anniversary upgrade.

 

[HappyFish]

Date: 12/4/2007 6:16:07 PM
Author: door knob solitaire
If you are asking advice from someone who has experienced...or is ''CURRENTLY'' experiencing the regret of no insurance. Well, I say you are reading the right post. As stupid as my story is, there may not be an insurance policy that would have covered it anyway...but yes I still wish I had a policy.

I have a long story...if you aren''t familiar with it...here it is in a nutshell. My loose 2 carat stone got tossed in the trash, rubbish, garbage. It is gone gone. Yadda Yadda Yadda. Heading out with check book in hand to re buy what was already bought...it a tad too nutts for me to do. Yes, I can afford it. No, I won''t go with out food or shelter...the point is I just don''t to spend it...again.

My rationale is I should be getting something different...say a pair of form fitting sport seats, 6 speed transmission and abs brakes...and also wearing my ring. Not just one. Arggh.

So, I say the little amount you have to pay a year...do it. Do it. DO IT. Make your next extra purchase a sweet little air cooled roadster with 18'' wheels...and wear your insured jewelry while driving off into the sunset!

Or you could end up like me...with a decision of either or. Under a cloud of grey skys..no sun in sight. Boo Hoo. Whaaaa Whaaa. §

I am so sorry to hear it. How DID you toss a 2 ct ring in trash?

 

[stebbo]

Author: neatfreak

If you were to lose or break your rings, could you replace them without feeling the pinch financially? If the answer is no, YOU NEED TO INSURE.

Author: Chrono
Another simple question to your answer:
Can you afford to replace your diamond rings without feeling the pinch should it get lost, stolen, chipped or damaged?

If the answer is yes, then no insurance is needed. If no, then you are better off with insurance.

Author: FireGoddess
If you can afford to replace them, or wouldn''t feel bad about not being able to replace them, then you don''t need insurance.

This advice always gets me a bit. Not arguing for or against insurance but you never know how ''comfortable'' you''ll be when a loss occurs. If you have lots of money to start with, you''ll probably buy a bigger diamond anyway--it will still pinch.

 

[HappyFish]

Date: 12/4/2007 1:04:35 PM
Author: Chrono
Another simple question to your answer:
Can you afford to replace your diamond rings without feeling the pinch should it get lost, stolen, chipped or damaged?

If the answer is yes, then no insurance is needed. If no, then you are better off with insurance.

ETA,
Neatfreak, we posted exactly the same answer at almost the same time.

Neatfreak and Chrono, I will feel the pinch to replace the ring. I feel the pinch to buy the insuance too.

Thanks girls. I will get insurance for the ring for peace of mind.

 

[HappyFish]

I don''t know how to reply to several posters at the same time. But thank you to everyone replied. Every post was very helpful to me.

 

[stebbo]

Author: door knob solitaire
If you are asking advice from someone who has experienced...or is 'CURRENTLY' experiencing the regret of no insurance. Well, I say you are reading the right post. As stupid as my story is, ....

I don't think your story is stupid, stuff like this happens.

I was driving down the highway the other day, radiator leak. $450 tow to nearest town, $600 repair, $350 for two nights in hotel waiting for car.

And if I hadn't noticed the temperature gauge, it would have been $15,000 for new engine.

That's life. Money comes, money goes.

Lose a diamond ring and you simply... don't have a diamond ring anymore. Sad, but as Dave says, not life threatening.

 

[FireGoddess]

Date: 12/4/2007 7:59:58 PM
Author: stebbo

Author: neatfreak

If you were to lose or break your rings, could you replace them without feeling the pinch financially? If the answer is no, YOU NEED TO INSURE.

Author: Chrono
Another simple question to your answer:
Can you afford to replace your diamond rings without feeling the pinch should it get lost, stolen, chipped or damaged?

If the answer is yes, then no insurance is needed. If no, then you are better off with insurance.

Author: FireGoddess
If you can afford to replace them, or wouldn''t feel bad about not being able to replace them, then you don''t need insurance.

This advice always gets me a bit. Not arguing for or against insurance but you never know how ''comfortable'' you''ll be when a loss occurs. If you have lots of money to start with, you''ll probably buy a bigger diamond anyway--it will still pinch.

Personally, even if I had all the money in the world, I would HATE to spend $10k or whatever on a stone when I already spent that previously. That''s why I have insurance. I''m not sure what better advice you would give, but I''m curious as to what that would be?

In your scenario, ''buying a bigger diamond anyway'' is a self inflicted pinch in my book. I personally would rather spend the difference between a smaller and bigger rock than the entire amount. Some people would rather gamble the cost of the insurance against an accident not happening because buying another ring outright wouldn''t put a dent in their cash flow. And it''s true that you don''t know how comfortable you''ll be when a loss occurs. But if the ring is important to you and your finances have changed, ie. you can''t afford to replace it, then in my book that would be a smart time to get insurance if you don''t already have it.

I''m not about to tell someone GET insurance or DON''T get insurance when I don''t know what their situation is. I''d rather give a suggestion as to when insurance might be appropriate. I''m curious as to what advice would you give?

 

[stebbo]

Author: FireGoddess

Author: stebbo
This advice always gets me a bit. Not arguing for or against insurance but you never know how 'comfortable' you'll be when a loss occurs. If you have lots of money to start with, you'll probably buy a bigger diamond anyway--it will still pinch.

Personally, even if I had all the money in the world, I would HATE to spend $10k or whatever on a stone when I already spent that previously. That's why I have insurance. I'm not sure what better advice you would give, but I'm curious as to what that would be?

Exactly - another reason why I dislike this 'if you can replace it without feeling financially pinched...' cliche.

I'm not about to tell someone GET insurance or DON'T get insurance when I don't know what their situation is. I'd rather give a suggestion as to when insurance might be appropriate. I'm curious as to what advice would you give?

I wouldn't in such a short space.

 

[samii]

We only just got my engagement ring (and he hasn''t yet proposed) but the first thing we did was organise insurance just to make me feel better. Partly because I have never worn anything that expensive before and know that stones can and do fall out, but also because we travel alot. While I would be heartbroken if that hardearned money had to be paid again for an e-ring, I''d probably be even more heartbroken if it meant I missed out on another sparkly item to add to my collection instead

 

[bee*]

We have our ring insured also. We could afford to buy it again but we really don''t want to!

 

[chrono]

Stebbo,
I did not insure mine because it is smaller, not worn often and I am in the position to replace it easily and don''t mind doing so should there be any damage or loss. I am, in effect, self insuring. What I would have paid in premiums can easily add up to buying another whole new stone. Once I get my upgrade, I will insure it because it makes more financial sense then. However, I am not everyone and everyone''s situation is different. I cannot tell a person what to do in their situation but what I posted earlier is true: if you feel the pinch with the loss, then insure it. What more can I say?

 

[Asharus]

I''m definitely looking to insure my fiancee''s new ring. I purchased the ring from Blue Nile, and they recommend either Chubb or Jeweler''s Mutual Insurance. Do any of you have any experience with either of these companies? Recommendations?

 

[Haven]

Happy--We insured my ring using Chubb because it was the right decision for us. The coverage was only $240 for the year (I think) and I personally feel it''s worth the piece of mind knowing that the ring could easily be replaced if something happens.

Of course, Oldminer is absolutely right that insuring a luxury item is, well, a luxury, and certainly not a necessity. I don''t think you''d find anyone who would advise you to get jewelry insurance over medical insurance, but from your post it doesn''t really seem like this is the case for you.

We thought of it this way: If something happened to make my ring unwearable, how would I feel? Would I feel as if it is irreplaceable because it''s my "engagement" ring, and therefore a new ring wouldn''t assuage the loss? OR, would I desperately want another ring? (My answer: it is replaceable, and I would want another ring.) SO, then we discussed how we would feel about replacing it if we didn''t have insurance. (The answer: REGRET. We''d feel regret. SO, we purchased the insurance.)

Good luck with your decision. Look at the Chubb and Jewelers Mutual policies to see which one is best for you, if you do decide to purchase insurance. There are a lot of threads on PS about these two companies, so that would also be a good place to start.

Good luck!