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insurance question

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mike2

Rough_Rock
Joined
Feb 2, 2003
Messages
13
I was talking to my State Farm agent about insuring my " lady''s" ring. ( round with one baggett on each side)
The agent suggested insuring the diamond only-it includes any cracking or breakage of the stone, any disappearance of the stone, and theft of course.

Does this sound right?

What deductible is the best one to choose? 1,000 or 2,000 or 3,000: how often do losses occur with diamonds/diamond engagement rings?

Thanks guys!

 

divergrrl

Ideal_Rock
Joined
Dec 9, 2002
Messages
2,224
I wonder how some agents get their licenses...sheesh!!!!! Ok, you have A) a round diamond, B) a baguette on each side, C) a gold or platinum setting.

Let's say for arguments sake that your diamond is 1 carat valued at $7000, your baguettes are .10 carat each for a .20ctw combined, valued at $240 (estimated at a cost of $1200 per carat..what they go for at a retailer here), and then your setting weighs 5 or 6 grams of gold. Don't know what that goes for, but I just bought a setting at that gram weight and retail on it was $300. (although I paid less, but I am quoting retail..and of course your setting may have cost more/less depending on metal, stone quality, designer, etc.)

Ok, you've got $7000 + $240 + $300 = $7,540.00 total retail ring value to replace.

I'd say insure the whole ring. My ring at $10k cost us $70 dollars per year to insure through Country Companies (I have home & car thru them as well) Our deductible is $1000 (same as our homeowners)

2 baguettes and the metal are not going to drive your premium costs up enough for you to even feel it, but when you are filing a claim if the unthinkable ever happens, you will be so glad that you have that extra value insured.

Just so you know... my engagement solitaire was $60 dollars a year to insure at a value of $6900.00 and when we added the new stones for the wedding band to that, the premium only went up an additional $10 dollars when the total amount was insured at $10k.

Your agent is not seeing the forest through the trees. Have the jeweler give you an appraisal with a breakdown, i.e. specs of each stone, specs of metal and total retail replacement cost. That is what you give your agent. While my ring only cost us a total of $5200, the retail replacement is $10k. If I lose my ring 10 years from now, $5200 won't buy the same thing.


If you insure "retail replacement value" and lets say your ring has a replacement value of $7540, but you only paid say $5000 for the whole setup, you have $2500 worth of "wiggle room" to absorb the loss associated with diamond prices possibly rising, or to counter the loss incurred with the $1000 deductible.

Obviously if the value of diamonds rising significantly, I'd get your ring reappraised every 5 or more years, as the replacement value may increase, making it crucial to increase the amount on your policy.


Cheers!
 
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