insurance co rider or separate co?

[bluerover]

I am new to this forum and have tried searching but seem to get old threads. Anyways.... I recently decided to switch insurance companies for my homeowners and auto. I have an engagement ring and necklace on a rider from my homeowners. Appraisals are both old (mid 90's). Needless to say the new co wants new appraisals. I got them yesterday. One item actually dropped in price because oval diamonds apparently are not popular. My necklace went up a lot in value so therefore my insurance costs are going to increase a lot too. I am trying to decide if I should put it as a rider on my homeowners or just insure separately with Jewelers Mutual. Insurance co will cost $206/yr and JM will be $282/yr. I have had these items for many years and never a claim. Not sure what to do. Pros and cons? The insurance agent did say if I insured with them and had a claim my rates would go up and another claim I could be dropped. If I went with JM and had a claim would my homeowners insurance co find out and possibly raise rates anyway or drop me? (Someone told me about a CLUE report where insurance claims are listed). Any help would be appreciated. Thanks.

 

[iluvdiamonds2]

Hello!
Better to keep jewelry insurance separate imho


http://www.jewelersmutual.com/aboutus.aspx

Check them out and give them a call w/ questions. Many gals I know use it and they're great.

 

[bluerover]

Thank you for your response however I mentioned Jewelers Mutual in my post. I am considering them already. Just not sure if I should go with them or with my insurance company as a rider. I can lower JM's prices a little bit by having a deductible although not sure how much of a deductible would be worthwhile.

 

[denverappraiser]

The usual reason people go with the homeowners companies is the convenience. They’ve already got a relationship with them, they have an agent they like, they already trust the company, and the company has a vested relationship in keeping them happy because they do other business with them. The usual reason to go with the standalone is because it separates out the claims history of your jewelry from the claims history of your home. This can lead to exactly the problems you’re discussing. Will a JM claim appear on your CLUE report? Maybe, but that report mostly comes into play if you’re changing your homeowners company for some reason and the new company will pull it. Assuming your current claims history is low and you aren’t otherwise planning on dropping your homeowners soon it’s not really an issue either way. If you rack up a few claims on either policy it may start to become a concern. That said, I'm personally a long time JM client and this *IS* part of the reason.

 

[bluerover]

Thank you for your response, Denverappraiser. I haven't had a homeowners claim in probably 20 years. Even then it was small... before I knew that you shouldn't do it for small claims. Never had a jewelry claim either. I do know that insurance companies (homeowners and auto) keep changing their rates and it is always wise every few years to price out other companies. My current company I have been with for 7 years. Last year and now my new renewal (for auto insurance) went up significantly. That is why I am price shopping. My appraisals were from the mid 90's because my current insurance company let me use old appraisals (surprising, I know). I never asked questions before probably because I never heard of using another company for jewelry.

Seeing as you are an appraiser, do you agree with my appraiser that oval engagement rings are not popular and therefore price is low? My appraisal came in at $1800 less than it was appraised for in the mid 90's whereas my necklace that has a round diamond is now double what it had been during that time period (at that time it was appraised less than my ring). You never know how good or bad your appraiser is unless you have an issue!

 

[Tacori E-ring]

I thought I lost my e-ring and called JM for information on how to make a claim, I was a bit frustrated that the agent said I would have to replace it with a like item according to the description on my policy. My e-ring is unusual and feel it would be more fair to be asked to replace it with $x instead. Thinking of switching.

 

[bluerover]

Sorry about your situation. They clearly state on their website that they replace not send a check. However, I know that a lot of us don't really understand what we are buying. That is why I am asking lots of questions that I never before even thought about! Luckily though I didn't have a claim and find out my insurance wasn't what I thought it was.

 

[denverappraiser]

Most insurance is agreeing to replace, not to pay cash. The secret to proper replacement is the description portion of your appraisal and the way to get a good description is to hire a good appraiser. It's easy enough to tell by simply reading what you have and looking at the pictures. If your insurer were to replace your item using that description as the purchase order, are you reasonably likely to be happy with the results? Put another way, if they buy the cheapest thing they can that meets that description, will you be disappointed because som important detail was missed?

For example. A Rolex President can correctly be described as: 'Gents yellow metal watch with articulated metal band in good running condition'. That can be replaced for $100 fairly easilly. Declaring a 'value' of $10,000 doesn't change this. If you want it replaced with a Rolex, and obviously you would, you need more data. Brand name, model number, serial number, condition, modifications present like the diamond bezel, etc. The more the better. The same applies with diamond rings. 'Approx 1.0ct round diamond solitaire ring- $7,000' may be correct and the price may be reasonable but it's not sufficient for replacement and the range of possible stones that could meet that description is HUGE.

 

[denverappraiser]

Thank you for your response, Denverappraiser. I haven't had a homeowners claim in probably 20 years. Even then it was small... before I knew that you shouldn't do it for small claims. Never had a jewelry claim either. I do know that insurance companies (homeowners and auto) keep changing their rates and it is always wise every few years to price out other companies. My current company I have been with for 7 years. Last year and now my new renewal (for auto insurance) went up significantly. That is why I am price shopping. My appraisals were from the mid 90's because my current insurance company let me use old appraisals (surprising, I know). I never asked questions before probably because I never heard of using another company for jewelry.

Seeing as you are an appraiser, do you agree with my appraiser that oval engagement rings are not popular and therefore price is low? My appraisal came in at $1800 less than it was appraised for in the mid 90's whereas my necklace that has a round diamond is now double what it had been during that time period (at that time it was appraised less than my ring). You never know how good or bad your appraiser is unless you have an issue!

Ovals are definitely less popular now than they were in the mid 90's but it's important to remember that popular is not a synonym for better. It makes them harder to find but I don't see a lot of fire sales going on. The marketplace has also changed significantly. Dealer margins are way down. Whether your stone went up, down or sideways has to do with both of these issues. I assume your appraiser didn't write the first report 15 years ago and it's entirely possible they used different methodology. He/she can speculate on what the other appraiser was thinking but it's only fair to hold them responsible for their own work only. The rest is guessing. I couldn't begin to guess about two appraisals on a single stone, none of which I have actually seen. Your appraiser should be prepared to explain any differences to you but I would start by making sure there is no difference in the grading, size or similar factual issues between the two reports.