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Insurance deductible?

Jhyphi

Rough_Rock
Joined
Mar 24, 2016
Messages
15
Hi!

I've gotten the ring! :dance:

Now I'm trying to sort out insurance. I've looked into State Farm (who I have car insurance with), and they have a Personal Item policy that I can add.

However, there's different prices depending on deductible for a $35k appraisal (higher than what I paid).
- No deductible - $540
- $500 deduct - $400
- $1000 deduct - $320

Anyone have thoughts on this? I'm guessing with higher deductible, you do repairs all out of pocket and then use it for only lost/stolen full replacement?

Or would you recommend getting "No deductible"?

Or would Jewelers Mutual be better - I'm assuming they'll also have different options depending on deductible also.

Thanks!
 

wildcat03

Brilliant_Rock
Joined
Apr 11, 2011
Messages
503
Why are you insuring the ring for more than you paid? You JUST got it, so it's not like prices have gone up in that time. I'd insure it for what you spent, not more. I have $0 deductible for all of my jewelry, but have been considering adding a small deductible to lower the cost of my policy.
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
55,631
Absolutely do any small repairs with no claim on the policy. Only make a claim on the policy if the diamond is lost, stolen, damaged (cracked), etc.

How much did you pay for the ring? If it was retail pricing, I also only insure for what I paid.

I'd compare the rates with JM. And sure, I'd accept a deductible. I might not want to have to replace a $30k ring, but it's no big deal to pay $500 or even $1000, for some people. After 5 years, you would have saved enough in premiums to cover the deductible anyway.
 

Jhyphi

Rough_Rock
Joined
Mar 24, 2016
Messages
15
diamondseeker2006|1462933974|4030050 said:
Absolutely do any small repairs with no claim on the policy. Only make a claim on the policy if the diamond is lost, stolen, damaged (cracked), etc.

How much did you pay for the ring? If it was retail pricing, I also only insure for what I paid.

I'd compare the rates with JM. And sure, I'd accept a deductible. I might not want to have to replace a $30k ring, but it's no big deal to pay $500 or even $1000, for some people. After 5 years, you would have saved enough in premiums to cover the deductible anyway.
I bought the diamond with online pricing (found online) but the B&M store when I showed them price got it to me for a few hundred less than that. So total was about $25.5k for diamond. Another $2.5k for setting, so total I'd say I paid $28k.

If I look generally for similar quality diamonds that are as well cut (within excellent, near H&A), they usually are several thousand more, so like $28k, meaning with setting would be about $31k?

I thought it was good to get slightly higher appraisal valuation so that they'd cover it fully?
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
55,631
You can have it insured for $50k and that doesn't mean they will pay that much for the replacement. Insurance companies have arrangements where they get replacements for less than the retail prices we pay, so they will usually pay less than your covered amount for the new diamond as long as the coverage is reasonably accurate. If it makes you feel better to insure for $30k, then that would be okay, but I wouldn't see any reason to insure for $35k. Diamonds are not always going up. If they do, then you can get an updated appraisal. But for the last 3-4 years, prices have been mostly stable or declining. No reason to overpay for insurance.
 
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