Insurance Question

[PSNEW]

Hi all - quick question on insurance

I just purchased the ring from Whiteflash and was wondering if it makes more sense to utilize the WF info (I think the purchase price) as the insured value or have it appraised elsewhere.

To expand, I think Jewelers Mutual lets you use the WF invoice price instead of having the ring appraised. My concern is that given price fluctuations, if I initially use the WF price would I have to get the ring appraised sooner rather than later to ensure the insured value is appropriate? In other words, if I get it appraised would the value last longer than if I was to use the WF invoice price?
This is based on my assumption that an appraised value would be significantly higher than the WF invoice price.

I am not 100% sure why appraised values are higher but I assume it has something to do with premiums and maintaining value...but I am guessing here...perhaps an expert can chime-in.

Any thoughts would be great!

 

[hawk25]

WF's appraised value is automatically a 30% premium of the price you paid. It's very likely that if you got another appraisal, it would be well over WF's appraisal value. Insuring your ring for a much higher amount is like just giving money away.

I insured my WF ring through JM, and they allowed me to lower the appraisal amount, provided I submit the request in writing. I asked about raising the amount in the future to keep up with inflation, and the JM rep told me I could do so without another appraisal (I would confirm this with your JM rep to be safe). I ended up lowering the amount to 15% more than what I paid to keep my premiums in line with reality, and will increase the amount in a few years when diamond prices increase. They allow you to decrease the amount down to the actual cost on the invoice.

IMO another appraisal isn't necessary since the WF invoice details that it's an ACA, so if you ever needed to make a claim they would replace it with another ACA of your choice. They ask you to submit the AGS certificate as well.

 

[SgrPlum12]

What is the benefit to insuring for more than what you paid? For example, we ordered a ring from Whiteflash for $11,000. Couldn't we just insure the ring for the amount of $11,000? I understand inflation, but if something happened to my ring in the next few years and I wanted to "recreate" the look, couldn't we just get a very similar stone and setting from Whiteflash for the same amount paid? Why would we need to insure for $15000? Maybe in 15 years, it would cost that much to "recreate" the same ring parameters, but not in the first 5 or maybe even 10 years. Am I right about that?

Just wondering if anyone can explain this. Thanks!

 

[hawk25]

What is the benefit to insuring for more than what you paid? For example, we ordered a ring from Whiteflash for $11,000. Couldn't we just insure the ring for the amount of $11,000? I understand inflation, but if something happened to my ring in the next few years and I wanted to "recreate" the look, couldn't we just get a very similar stone and setting from Whiteflash for the same amount paid? Why would we need to insure for $15000? Maybe in 15 years, it would cost that much to "recreate" the same ring parameters, but not in the first 5 or maybe even 10 years. Am I right about that?

Just wondering if anyone can explain this. Thanks!

There's definitely no reason for insuring for $15000 in your case, other than some people not wanting to get another appraisal if the insurance company requires a new appraisal to change the insured value. Many people would pay for that lack of hassle, and insurance companies count on that.

There was a thread recently by a PS vendor who predicted an upcoming rise in diamond prices due to a shortage in popular sizes: (https://www.pricescope.com/communit...in-popular-sizes-and-grades-prices-up.197944/). It's hard to predict how much prices will increase next year, let alone much further into the future. There was an article on PS showing just how much diamonds have been increasing with this chart:



If you're willing to keep up with diamond prices each year, and if your insurance company allows changing the value without an appraisal, you could probably save a good amount on money on premiums. The deciding factor is just how much work are you willing to do?

 

[PSNEW]

WF's appraised value is automatically a 30% premium of the price you paid. It's very likely that if you got another appraisal, it would be well over WF's appraisal value. Insuring your ring for a much higher amount is like just giving money away.

I insured my WF ring through JM, and they allowed me to lower the appraisal amount, provided I submit the request in writing. I asked about raising the amount in the future to keep up with inflation, and the JM rep told me I could do so without another appraisal (I would confirm this with your JM rep to be safe). I ended up lowering the amount to 15% more than what I paid to keep my premiums in line with reality, and will increase the amount in a few years when diamond prices increase. They allow you to decrease the amount down to the actual cost on the invoice.

IMO another appraisal isn't necessary since the WF invoice details that it's an ACA, so if you ever needed to make a claim they would replace it with another ACA of your choice. They ask you to submit the AGS certificate as well.

Great advice! If there is that flexibility I think that's a great option for me!

Thanks!

 

[c-k]

Insure it for the amount you paid for it, they will only cover actual replacement value and Jewelers Mutual knows what the replacement cost is, use your sales receipt, it should have all of the Whiteflash specs, details, lab, etc....why pay for an appraisal that will only increase your premium.

Every year you will get a letter from Jewelers mutual with a value adjustment increase that you can accept or opt out for....makes it easy for everyone.

 

[PSNEW]

Thanks!

 

[WinkHPD]

What is the benefit to insuring for more than what you paid? For example, we ordered a ring from Whiteflash for $11,000. Couldn't we just insure the ring for the amount of $11,000? I understand inflation, but if something happened to my ring in the next few years and I wanted to "recreate" the look, couldn't we just get a very similar stone and setting from Whiteflash for the same amount paid? Why would we need to insure for $15000? Maybe in 15 years, it would cost that much to "recreate" the same ring parameters, but not in the first 5 or maybe even 10 years. Am I right about that?

Just wondering if anyone can explain this. Thanks!

Some years yes, some years no. If you could replace a ring you bought five years ago for the price you paid you would be very lucky. Even in this horrible economy we have had some strong price increases in the cost of diamonds. The reason some vendors use a cushion is because we know that MOST people will NOT get their jewelry reappraised every year or two. Then when something happens and you are under insured you will be angry with your jeweler for not properly protecting you.

In a perfect world you would get a new appraisal at least every two years, almost never happens.

Wink

 

[WillyDiamond]

Your rate to insure under a personal articles rider will vary from state to state. Where I live, it is approx 1% per $1,000. So if I add up all the insured jewelry appraised at $30,000, the annual premium is about $300 per year. For $35,000 it would be about $350 per year, a $50 per difference to cover $5,000 more. Is that worth it to you to fork over the extra $50 per year for piece of mind and that as Wink said in a previous post you most likely will not have your jewelry re-appraised every 2 years. Also, many jewelers do not do this for free. Yes, if you send it to the people you bought it from, they will most of the time appraise for free, but local jewelers generally charge for this service, so add that charge into the extra $50 I mentioned above.

Is it worth it to insure at the appraised value which is a little higher than todays replacement value, well that decision is up to you.
Best of luck.