Insurance For Ruby Engagement Ring

[sja1224]

Hi, we're having our jeweler (a Downtown LA wholesaler) custom-make us a ruby engagement ring. It'll be ready in a couple weeks, and I've been doing a lot of research on insurance.

Rubies seem much more difficult to replace than diamonds since there's so much variation in color and no universal grading system. We made 4 trips to our jeweler to look at various rubies, and it won't be so easy to find a "similar" ruby if something happens to this ring. I'm afraid of having a hassle with an insurance company about what's really a similar ruby.

I'm strongly leaning towards a policy that will cut us a check in the event of a loss, rather than a replacement policy. Our jeweler says he's seen many people go through hassles with insurance companies trying to screw people into accepting lesser quality with replacement policies.

Since it's a replacement plan, I'm leaning against Jeweler's Mutual.

Are there any other stand-alone plans that will cut us a check -- rather than replace the ring -- if the ring is lost? I saw old posts about Chubb, but they apparently don't offer this anymore.

We rent and we don't have renter's insurance. I suppose we could get renter's insurance if necessary.

We're not USAA members, but we could get it through grandparents. But I'm confused by USAA's policy. I've read that for diamonds they try to replace it with one of their diamonds, and if not they give you a check for the replacement value. If you have a ruby, how does this work? If we have a solid appraisal with details and pictures, will we have trouble getting the insured value from USAA as the replacement value?

Thanks!

 

[digdeep]

Of course your ruby is 'valuable' to you, but without the verification/validation of independent reputable resources you will most likely not see the value you assume. So, get a reliable lab report (AGL) on the gem (heated? treated? lead? color? size?) then have the full ring appraised (for value today) by a GIA appraiser (utilizing the lab report-and cut quality, size, etc). These are the pre-steps so you know what you have. Once you know the value of your ring......you can decide the best value for insurance. Most homeowners/renters insurance require a rider (separate coverage for jewelry above a value limit) and that would cover the reports above. Insurance is about replacement......not cashing out, so you may not find what you want. Jeweler's Mutual will pay cash if they cannot replace the item......thus the need for the 'proof' and they know the jewelry they are insuring. They will make a decision/quote for coverage based on the info you submit and they require. Bottom line, you will have to do some work/research to find the best fit for you. But it all starts with absolutely KNOWING what you are insuring and proving it. Hope this helps...........good luck.

 

[sja1224]

Of course your ruby is 'valuable' to you, but without the verification/validation of independent reputable resources you will most likely not see the value you assume. So, get a reliable lab report (AGL) on the gem (heated? treated? lead? color? size?) then have the full ring appraised (for value today) by a GIA appraiser (utilizing the lab report-and cut quality, size, etc). These are the pre-steps so you know what you have.

Thanks for the reply! Yep, we're doing that. Our jeweler is sending the ruby is being sent into GIA for confirmation that it's what he says it is (heated but no treatment).

What do you mean a "GIA appraiser"? Our jeweler is a GIA "Graduate Gemologist."

Insurance is about replacement......not cashing out, so you may not find what you want. Jeweler's Mutual will pay cash if they cannot replace the item......thus the need for the 'proof' and they know the jewelry they are insuring.

We're not looking to cash out. We just don't want any issues with some insurance company trying to force us to accept some other ruby that we deem inferior, and to have to negotiate with them. Given that there's no universal color scheme for rubies, and that we've seen several GIA ruby certificates say "red" even though they're quite pink or really dark, we're afraid they'd try to force something like this and say it's a similar ruby.

Also, there isn't an unlimited supply of un-treated round rubies at every weight. Our ruby is going to be a 1.45 ct. What if our jeweler can't find ruby around that weight that's as nice as the one we have, and the he can only find a 1.7 ct that's as good a color as we had? I can see some insurance company balking and saying that's not a similar ruby, even though the replacement cost is under the policy amount.

An agreed-value policy is perhaps better for us. Do these not exist?

 

[digdeep]

"Heat" is a treatment so be careful in calling your gem 'untreated' as it has been heat treated......which is a common ruby treatment. The AGL report (better for colored stones) along with the GIA appraisal may support the valuation for the ring. The appraisal is usually done by a neutral party, someone not involved in the transaction. The 'agreed value' you mention would be the value the insurance company agree's to insure the ring for, based on the appraisal/report or any other details.........it is not a negotiation with the consumer. These are my experiences so there may be something else available, but I'm not familiar with anything else! That's all I've got to contribute! Enjoy your ring.............

 

[MollyMalone]

Of course your ruby is 'valuable' to you, but without the verification/validation of independent reputable resources you will most likely not see the value you assume. So, get a reliable lab report (AGL) on the gem (heated? treated? lead? color? size?) then have the full ring appraised (for value today) by a GIA appraiser (utilizing the lab report-and cut quality, size, etc). * * *

Thanks for the reply! Yep, we're doing that. Our jeweler is sending the ruby is being sent into GIA for confirmation that it's what he says it is (heated but no treatment).

What do you mean a "GIA appraiser"? Our jeweler is a GIA "Graduate Gemologist."

We're not looking to cash out. We just don't want any issues with some insurance company trying to force us to accept some other ruby that we deem inferior, and to have to negotiate with them. Given that there's no universal color scheme for rubies, and that we've seen several GIA ruby certificates say "red" even though they're quite pink or really dark, we're afraid they'd try to force something like this and say it's a similar ruby.
* * *
An agreed-value policy is perhaps better for us. Do these not exist?

I too am wondering what digdeep means by "a GIA appraiser" (perhaps she meant to type something else). GIA doesn't offer a diploma or certificate in Jewelry Appraisal; appraising is not part of the curriculum for any of their courses:
https://www.gia.edu/gia-faq-education-programs-courses-appraisal

Is your ruby already on its way to GIA; if not, you could consider sending it to AGL (mentioned by digdeep). Although
although GIA has more "name recognition" in the wider marketplace, AGL is more highly regarded (at least here in the US) by colored stones aficionados:
http://aglgemlab.com/about-us/

By "agreed-value", I think what you're referring to is what I think of "as agreed cash value" whereby the insurance company binds itself to paying out the figure determined before the policy was actually issued. Jewelers Mutual used to offer that (don't know if they still do; I couldn't seem to quickly find anything about it on its current web site, which frankly I think is less useful than their prior web site). But fyi the premiums were 40-50% higher than their usual policies, in part because it was intended for owners of rarer pieces of jewelry that couldn't be replaced/duplicated without a great deal of effort, if at all.

 

[digdeep]

My apologies on the confusion........when I've requested insurance coverage I've had documentation from a graduate gemologist that identified/appraised the jewelry. This was done with a person who was credentialed to appraise and approved by the insurance company. I'm sorry my explanation was not clear...........as Molly noted, it wasn't accurate.