Help with insurance question

[Zachscott]

I purchased a enagament ring for $4100 and it came with an apprasial of $6000. I know the apprasial is on the high side but I also know I got a really good deal, thanks to all the info on this site.

My questions is, how much should I insure this ring for?
Do I need to get another independant apprasial?

Thanks
Zach

 

[hoorray]

Insure it for what you think it would really cost to replace it plus maybe a small buffer. My insurance co told me that it is typical for them to retain the option to replace or refund. They will try to replace first, based on the specs of the loss, not the $$ amount. (So you won't get significantly more than what you have now.) However, they charge by the $$ of the value of the covered item, so if you insure it for an inflated price, you pay a higher premium to get the same item replaced as if you insured it for actual replacement value. (Remember also that the insurance companies buy at better prices than individuals.)

The only exception to this that I know of is Chubb. People here say they gove you the $$ not a replacement. I have no experience with them.


Lastly -- get an independent appraisel anyway. It's always good to have someone not associated with the sale tell you actual value and validate that what the vendor says about the ring is real.

 

[Mikesgirl]

Absolutely! You didn't mention a cert, and if it's uncertified be sure to have it done! I recently lost my e ring, uncertified, and went through major trauma getting a reasonable settlement from a reputable insurance company (Erie Ins) because the jeweler's appraisal wasn't sufficient for them. The more detail you get the better, so you can be sure the replacement is of equal value.

 

[oldminer]

It ought to be insured with a normal replacement type poliscy for average retail value regarldess of what you paid. However, there are exceptions such as Chubb or USAA. There are also savvy shoppers who wish to insure their jewelry for low retail prices and take some degree of risk in making replacements should a loss occur.

If your diamond typically sells for $4000 on the Internet, there is no real reason to overinsure it for $6K, but this is not the typical reaction people have. Some people love the feeling that they got a "steal". Some like the comfort level of a high number.

You really have choices here. As long as it is insured for enough that YOU can replace it, then that is really a sufficient amount of coverage.

 

[Zachscott]

Yes, I have a GIA Cert and a Sarin report. (Sarin showed all AGS 0 but Crown which was off .2% off
.94 H SI1 .9 HCA in a platinum setting.

When my fiancee called up her insurance company they asked for the bill of sale, and they said they don't use inflated appraisals. I have no problem with using a price less than the appraisal, but do not want to go as low as the sale price. I think I got a great deal that would be hard to repeat. Any ideas?

 

[Zachscott]

It ought to be insured with a normal replacement type poliscy for average retail value regarldess of what you paid. However, there are exceptions such as Chubb or USAA.
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This might be the problem. The company is USAA. What do you suggest I do?

Thank you very much for your help.

 

[fire&ice]

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On 9/9/2003 3:16

1 PM Zachscott wrote:

Yes, I have a GIA Cert and a Sarin report.
.94 H SI1 .9 HCA in a platinum setting.

When my fiancee called up her insurance company they asked for the bill of sale, and they said they don't use inflated appraisals. I have no problem with using a price less than the appraisal, but do not want to go as low as the sale price. I think I got a great deal that would be hard to repeat. Any ideas?
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Zach, I believe it was NiceIce that mention this great advice, make sure you document the heck out of the stone. If you have a replacement policy, they will be obligated to get you a stone "of like kind". Cut often isn't indicated, when it should be paramount.

Personally, I insured mine for a tad more to buffer in inflation.

 

[hoorray]

The experience I listed above is with USAA. I don't know what is unique about their coverage. They do sell diamonds, so probably have good buying power, but I don't know what would be unique. Oldminer -- why do you say it is different?

BTW...I discussed the coverage amount in detail with them, and they recommended that we added a small amount of "buffer" to ensure that it woule be replaceable for that amount. They also told me that it is not a full replacement policy. If the value were to increase, they still only cover the $ amount, so recommend that I have it re-appraised every few years.