Insurance options, appraisal, requirements

[Holy]

Sorry if there's a better forum area for this:

1. What is really required to insure a 5k to 15k engagement ring? Must I get an appraisal of the stone out of its setting? Will Good Old Gold's insurance info suffice?

2. Is there anything wrong with USAA, through whom I already have home & auto, and the trust of 18 years?

3. Will only certain insurers provide replacement coverage? What should I be looking for in replacement coverage?

Thanks!

 

[diamondseeker2006]

Here is a thread where we recently discussed this subject:

https://www.pricescope.com/community/threads/jewelers-mutual-any-problems-with.52604/=

Very briefly, you may not have the freedom to choose where to replace your diamond if you go through homeowners. And they usually try to replace the stone for you, and if they end up cutting you a check, it is not for the amount the ring was insured for..it is the amount they could replace the ring for.

Some people, for that reason, choose to go with Chubb which has a jewelry policy, but there is a minimum amount the item has to be. I am waiting for an answer to that question now. It may be $5000 or $10,000. I just got a quote this morning, and it was only $25 a year more than the cost of my homeowner's insurance. They will write you a check for the insured amount or replace it with a like item even if it has gone up in value up to 150%. We have another thread about Chubb going on now.

https://www.pricescope.com/community/threads/chubb-insurance-question.53004/

I have mine on our homeowner's now and may switch to Chubb because I would want GOG to replace my stone if anything ever happened to it. Here is the Chubb site:

http://www.chubb.com/personal/jewelry_protection.jsp

The thing I don't like with Jeweler's Mutual is that they require you to get the ring checked and reappraised every three years. I just don't like that requirement. I might only want to change the value every five or ten years, for example.

Oh, and yes, GOG's insurance information is more than enough. You must specify to them if you want the report to list your purchase price or an inflated retail value, though. I did not want to pay the premiums on a really inflated value.

 

[denverappraiser]

Most insurance companies don’t require much, if anything. Almost always the paperwork from the selling jeweler will meet their requirements. It’s the consumers, not the insurance companies that should be picky about paperwork.

USAA is a fine company. The only real problem with them is that they are limited to veterans and their families so there are lot of folks who aren’t eligible. USAA writes replacement type policies. This means that they will replace a lost piece with another of ‘like kind and quality’ in the case of a loss. The definition of like kind and quality is in your appraisal, which is why you want something as detailed as possible. The documents from GoG should work just fine for this purpose. Use the purchase price. USAA usually makes replacements using their own jewelry subsidiary and will not allow you to shop at the supplier of your choice, which can cause some stress for some people but if the paperwork specifies a narrow enough definition on the item then you will be fine.

If you wear a piece daily, you should have checked by a professional regularly anyway, whatever you decide do for insurance. It''s usually free at jewelry stores and it significantly reduces the chances of unnoticed damage that can cause future problems like stones coming out (which is why JM requires it on pieces where they are assuming that risk).

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[diamondseeker2006]

Date: 11/7/2006 2:37:32 PM
Author: denverappraiser

Most insurance companies don’t require much, if anything. Almost always the paperwork from the selling jeweler will meet their requirements. It’s the consumers, not the insurance companies that should be picky about paperwork.

USAA is a fine company. The only real problem with them is that they are limited to veterans and their families so there are lot of folks who aren’t eligible. USAA writes replacement type policies. This means that they will replace a lost piece with another of ‘like kind and quality’ in the case of a loss. The definition of like kind and quality is in your appraisal, which is why you want something as detailed as possible. The documents from GoG should work just fine for this purpose. Use the purchase price. USAA usually makes replacements using their own jewelry subsidiary and will not allow you to shop at the supplier of your choice, which can cause some stress for some people but if the paperwork specifies a narrow enough definition on the item then you will be fine.

If you wear a piece daily, you should have checked by a professional regularly anyway, whatever you decide do for insurance. It''s usually free at jewelry stores and it significantly reduces the chances of unnoticed damage that can cause future problems like stones coming out (which is why JM requires it on pieces where they are assuming that risk).

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Sure, and I do that when I happen to go into a jewelry store. They often offer to clean and check my rings. But I like to do that on my own time schedule and not feel like it is hanging over my head or my policy will be cancelled, that''s all I meant. We should take care of our jewelry for sure.

 

[denverappraiser]

Diamondseeker,

I agree, I find it irritating to be REQUIRED to do things. I also dislike their procedure of asking the inspecting jeweler to sign of on a new value rather than just testify to any changes in condition. Most jewelers, even those who are highly qualified to inspect a piece for damage are not qualified appraisers and most of these JM inspections are not sufficient for this purpose even if done by a qualified appraiser.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[diamondseeker2006]

I agree, Neil. On a similar note, our homeowners insurance increases the "value" of our house every year automatically, thereby making the premiums go up. At some point, I realized that their formula was making the value go up far higher than construction costs in our area, so I called them and explained that and made them adjust the value to a reasonable amount. I think we have to balance adequate coverage and being taken advantage of. So I don''t like insurance that makes you increase the value of an item if you are comfortable with the current coverage.

From what we''ve been seeing on here, it sounds like the Chubb is the most straightforward, so I am planning to try it. From your helpful posts, I plan to insure for our purchase price, and that will technically cover the amount we paid in the very unlikely event of loss. Overinsuring is just lining the pockets of an insurer, and it is good to know that is not necessary.

 

[4themrs]

Holy,
Great questions and I pondering the same situation for a surprise gift for my wife.
Diamondseeker and everyone, I like the concise and helpful locations of all the different information for these questions.

 

[Holy]

Here''s my scenario. I paid $7,160.51 for the ring. Good Old Gold gave me an appraisal that says about $10,995 (it''s at home; don''t remember exactly). Questions:

1. What specs do I give USAA to ensure that they will replace the item with a "like-kind" item? If I tell them H&A, AGS0, will they replace the ring (if lost) with an AGS0 H&A? I spent 60 hours doing research and found a stone and ring that were excellent in many ways. I''d hate to get a low-ball replacement.

2. Will it make any difference (except in premium) if I insure for $7k or $11k? If USAA does "like-kind" replacements or gives the insured the equivalent in cash, does it even matter what the insured value is?

3. Can I have a ring insured that is not mine? It belongs to my fiancee, not me. When we are married then of course we can insure it together as joint policyholders.

I''d call USAA but I can''t even talk on the phone right now (sore throat).

Thanks. And check out my proposal story!

 

[ImpatientOne]

Holy - we just insured my rings through USAA and their price was far better than anyone elses. One thing to be aware of, they will find you a replacement if something happens. SOme people like the policies where you are sent a check and go out and buy a new item yourself.

If you go the USAA route (or any other policy that finds you a replacement), make sure your appraisal is as detailed as possible. I sent USAA copies of both the appraisal and the GIA cert.

 

[ImpatientOne]

Date: 12/14/2006 12:59:22 PM
Author: Holy
Here's my scenario. I paid $7,160.51 for the ring. Good Old Gold gave me an appraisal that says about $10,995 (it's at home; don't remember exactly). Questions:

1. What specs do I give USAA to ensure that they will replace the item with a 'like-kind' item? If I tell them H&A, AGS0, will they replace the ring (if lost) with an AGS0 H&A? I spent 60 hours doing research and found a stone and ring that were excellent in many ways. I'd hate to get a low-ball replacement.

2. Will it make any difference (except in premium) if I insure for $7k or $11k? If USAA does 'like-kind' replacements or gives the insured the equivalent in cash, does it even matter what the insured value is?

3. Can I have a ring insured that is not mine? It belongs to my fiancee, not me. When we are married then of course we can insure it together as joint policyholders.

I'd call USAA but I can't even talk on the phone right now (sore throat).

Thanks. And check out my proposal story!

Holy - I should have read all the way through before responding the first time. I asked USAA the same questions - I sent them the info that the jeweler gave me, then went back and sent them the appraisal info. The rep as USAA said they didn't care about the higher appraised value - they base the replacement not on $ value but the actual item they are insuring. For example, you paid $10k for the ring and it appraised for $15k- you would want to pay the premium based off the $10k figure and USAA will find you a diamond of like quality (ie VS1 G, ideal cut, ex ex etc). That's why you want the most detailed description you can give them.

We originally sent them the paperwork from the jeweler along with the GIA cert for the center stone. This paperwork did not contain any info on quality of the diamonds in the setting and wedding band other than diamond carat weight. USAA set up the policy and told us the premium. A few days later I faxed them an idependant appraisal which had more detail on the setting/band. Of course this appraisal came back higher than what the jewlers paperwork said. USAA did not change the premium, just added the info to our file for future reference in case the ring(s) are lost, stolen etc.

BTW, I am loving USAA and can't wait until I am married to reap the full benefits And yes, you can insure the ring even though your fiancee has it. My bf and I do not live together yet, so USAA just noted my name and address in the file so they know where the ring is. I am still waiting for my proposal!