Engagement ring Insurance - need help

[The Stig]

Now that I have possession of the SO’s eRing, I need to take out an Insurance policy. I paid just over 15k for the whole ring from IDJ, and it got appraised for $22k. I need help from the veterans:

1) I was planning on insuring the appraisal value instead of the purchase price. Is doing that a waste of money seeing the Insurance Co will be able to replace the ring with a like one for way less than that?
2) what is the best Insurance Co to write the policy? So far have looked into Jewellrers Mutual.
3) I would pay a higher premium for the option of a cash pay-out instead of like for like replacement chosen by Insurance Co with select vendors. Where can I get such a policy
4) if 3 is not feasible, which Insurance Co and policy is the best at letting one select the replacement without a restriction on the vendor?

Thanks for the help. There is no immediate rush as the ring is stored away in a safety security box at my local bank.

 

[kindred]

You would be wasting money if you insure for the inflated appraised valuation. Jeweler's Mutual told me I would have to get a new appraisal every 2 years and the ring valuation probably won't change drastically in that time period.

Not sure about #3. It sounds like Jeweler's Mutual will often (usually?) let you use the vendor of your choice, though.

I would be surprised if you can find a better company than Jeweler's Mutual. My homeowner's policy didn't even want to insure my diamond because of the dollar value. Not that I would recommend using your homeowner's policy anyway, as a jewelery loss could trigger higher premiums on your house for a very long time. It's better to keep the jewelry policy separate.

 

[yssie]

1. A small buffer - 10-15%, say - above purchase price for “future-proofing” would not be unreasonable, but half again is excessive. How did your appraiser come up with this (rather ludicrous) number? I personally would recommend going back to him/her and demanding a realistic valuation.

2. Do you live in the US? Your spelling of “jeweller” suggests perhaps not? Within the US JM is well-regarded - both for keeping the claims process sane and working with the client to make him whole. Other options - with various pros and cons - are adding your jewellery on a rider to your homeowner’s, policies provided through employers: Electric Insurance is a fantastic option for GE employees, I’ve heard excellent reviews of USAA, various universities and affiliated corporations offer insurance options that can be quite generous...

I, like @kindred, advise caution regarding using your homeowner’s provider - the last thing you want to do is raise your home premiums in the case of a claim, as @kindred already explained.

3. It is difficult to find cash-out policies. It certainly doesn’t hurt to call a local Chubb provider - I was able to get a standalone cash-out policy with Chubb a few months ago; I suspect whether or not you succeed depends on the dollar value you’re looking to insure, and the value of this ring alone may be insufficient, but you lose nothing by inquiring. My Chubb policy is actually significantly less pricey than JM’s quote for my (geographic) location. Honestly though, replacing with “like kind and quality” is perfectly sufficient guarantee if your appraisal is thorough and detailed - the appraisal is extremely important!!

4. Ask potential insurance providers pointed questions in writing if answers are not explicitly given in terms/FAQ sheets. Some things you might care about:
A) Am I covered in case of loss and theft, within country and internationally?
B) What damage is covered, and what is not covered? (Often “normal wear and tear” is not covered - ask what this means, and if there are any stipulations re. regular inspections, etc. to maintaining coverage)
C) Is shipping of loose stones covered domestically? Internationally?
D) Is my stone covered during setting/resetting by a domestic vendor? By an international vendor?
E) Can I choose my jeweller in case of replacement need? Can my choice of jeweller be international?
F) If I acquire new pieces, is there any automatic coverage from time of acquisition until addition to policy? If so, how do I go about proving value (is sales receipt sufficient?) Ie. my provider has a blanket “new pieces of jewellery or art valued up to $X are covered upon purchase for Y days - which gives me time to deal with adding them to my policy when I’m home from vacation.

 

[The Stig]

1. A small buffer - 10-15%, say - above purchase price for “future-proofing” would not be unreasonable, but half again is excessive. How did your appraiser come up with this (rather ludicrous) number? I personally would recommend going back to him/her and demanding a realistic valuation.

2. Do you live in the US? Your spelling of “jeweller” suggests perhaps not? Within the US JM is well-regarded - both for keeping the claims process sane and working with the client to make him whole. Other options - with various pros and cons - are adding your jewellery on a rider to your homeowner’s, policies provided through employers: Electric Insurance is a fantastic option for GE employees, I’ve heard excellent reviews of USAA, various universities and affiliated corporations offer insurance options that can be quite generous...

I, like @kindred, advise caution regarding using your homeowner’s provider - the last thing you want to do is raise your home premiums in the case of a claim, as @kindred already explained.

3. It is difficult to find cash-out policies. It certainly doesn’t hurt to call a local Chubb provider - I was able to get a standalone cash-out policy with Chubb a few months ago; I suspect whether or not you succeed depends on the dollar value you’re looking to insure, and the value of this ring alone may be insufficient, but you lose nothing by inquiring. My Chubb policy is actually significantly less pricey than JM’s quote for my (geographic) location. Honestly though, replacing with “like kind and quality” is perfectly sufficient guarantee if your appraisal is thorough and detailed - the appraisal is extremely important!!

4. Ask potential insurance providers pointed questions in writing if answers are not explicitly given in terms/FAQ sheets. Some things you might care about:
A) Am I covered in case of loss and theft, within country and internationally?
B) What damage is covered, and what is not covered? (Often “normal wear and tear” is not covered - ask what this means, and if there are any stipulations re. regular inspections, etc. to maintaining coverage)
C) Is shipping of loose stones covered domestically? Internationally?
D) Is my stone covered during setting/resetting by a domestic vendor? By an international vendor?
E) Can I choose my jeweller in case of replacement need? Can my choice of jeweller be international?
F) If I acquire new pieces, is there any automatic coverage from time of acquisition until addition to policy? If so, how do I go about proving value (is sales receipt sufficient?) Ie. my provider has a blanket “new pieces of jewellery or art valued up to $X are covered upon purchase for Y days - which gives me time to deal with adding them to my policy when I’m home from vacation.

Thank you, very helpful. Yes I do live in the US, hoewever, I am originally from South Africa so please pardon my English as I just can’t seem to shake old habits - lol.

Yeah, the appreasal surprised me, I’m wondering what’s up with that.

 

[yssie]

I’m originally from New Zealand and I spell the same way despite having now spent 15 years in the US old habits, for sure!

 

[BlingDreams]

Yeah, the appreasal surprised me, I’m wondering what’s up with that.

It depends on who did it and how comprehensive it was. I had a very in depth appraisal done by David Wolf (NY) and (if I remember correctly) he looked at the past six or so months history of diamonds sold and also those currently available that had the same specs as mine. He dropped the higest and lowest and then averaged them out to get my appraisal price. So, if you got a great deal on your diamond, the appraisal could very well be quite a bit higher than what you paid.

That said, you could always request an appraisal price closer to what you paid. If you got a “unicorn deal” though I wouldn’t recommend it as the chances of finding those in the future on-demand are slim.

 

[The Stig]

I’m originally from New Zealand and I spell the same way despite having now spent 15 years in the US old habits, for sure!

Talking about old habits, it was good to see my Boks finally break the old habit of getting whipped by your All Blacks on a regular basis when we sneaked (or is it snuck) home a couple of weeks ago in Wellington. That was special!!!

 

[WinkHPD]

3) I would pay a higher premium for the option of a cash pay-out instead of like for like replacement chosen by Insurance Co with select vendors. Where can I get such a policy

Jewelers Mutual does not choose a diamond for you with their select vendors. They actually encourage you to use the vendor of your choice, provided the jeweler of your choice will adhere to the required markup schedule of JM and send JM a copy of their actual invoice so that JM will be able to add the appropriate markup and sent them payment.

The nice thing for most Internet sellers is that the JM markup schedule is higher than our normal markups, so we have absolutely NO issues with adhering to their markup schedule.

Oh, it is snuck, and I expect that Yssie would advise you not to get used to beating the All Blacks.

Wink

 

[The Stig]

Oh, it is snuck, and I expect that Yssie would advise you not to get used to beating the All Blacks.

Wink

Thank you, very helpful.

Trust me, I am a realist, I know that the All Blacks found a way to loose that game rather than the Boks win it. I’ll take it though

 

[yssie]

Thank you, very helpful.

Trust me, I am a realist, I know that the All Blacks found a way to loose that game rather than the Boks win it. I’ll take it though

Took the words right out of my mouth and spared me having to say it
It was a sad date with my guac bowl out here. This is the same guac that I watched Alex Smith get ousted from yet another team for “almost-MVP” performance... (football is the only other sport I care for)...
The guac is obviously cursed.

 

[bmfang]

Talking about old habits, it was good to see my Boks finally break the old habit of getting whipped by your All Blacks on a regular basis when we sneaked (or is it snuck) home a couple of weeks ago in Wellington. That was special!!!

Was very disappointed that happened. And I say that as an Aussie who is constantly ribbed by his friends for being an All Blacks supporter!

 

[The Stig]

Was very disappointed that happened. And I say that as an Aussie who is constantly ribbed by his friends for being an All Blacks supporter!

I think the big mistake you guys make is that for some odd reason you give the Boks too much respect. That always surprised me in the past, and the reason you have been able to consistently beat us away in SA in recent years is because that respect has decreased over time. It’s still there though, but I think it’s highly unnecessary. Our players and coaches are nowhere near as skilled and talented as yours, and we are the only sports team I can think of that is unable to field our best players. I also think you don’t have that same level of respect towards the Wallabies, and the result is that you always dominate them. That’s just my two cents. BTW, I plan to be in Tokyo next year for the All Black vs Boks RWC match.

 

[The Stig]

Took the words right out of my mouth and spared me having to say it
It was a sad date with my guac bowl out here. This is the same guac that I watched Alex Smith get ousted from yet another team for “almost-MVP” performance... (football is the only other sport I care for)...
The guac is obviously cursed.

Not necessarily, because Patrick Mahomes is big time. He is a baaaddd mannn. The Chiefs are going to be contenders. Alex Smith is not winning a SuperBowl.

 

[yssie]

Not necessarily, because Patrick Mahomes is big time. He is a baaaddd mannn. The Chiefs are going to be contenders. Alex Smith is not winning a SuperBowl.

It’s been three games - we’re still in beginner’s luck territory!

 

[bmfang]

Not necessarily, because Patrick Mahomes is big time. He is a baaaddd mannn. The Chiefs are going to be contenders. Alex Smith is not winning a SuperBowl.

It’s been a long time between SB wins for my 49ers. This year is not going to be any different than recent years where I am perpetually disappointed. Oh how I long for a repetition of the Montana and Young days...

 

[rubybeth]

Do not over insure. See if the appraiser will adjust the valuation. Share with the appraiser what you actually paid. See if they will reduce the replacement to be just a couple thousand more than what you paid. Insure for that amount.

I have dealt with an "appraiser" (I put that in quotes because they weren't independent of a jewelry store), over-valuation, and insurance multiple times. I was okay with over-valuation by a couple hundred or maybe $1,000 in the case of one of my pieces (and I got such a great deal on it), but in the case of another piece, I pushed back and got them to change their valuation. There is absolutely no sense in over-paying for insurance.

And, I have used JM for a repair (DH's wedding band had to be cut off for a medical procedure), and they let me choose my jeweler for the fix and paid for the whole thing. They were easy to work with on the repair side of things.