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Insurance Questions

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jimtheideaman

Rough_Rock
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Oct 11, 2006
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For my recently purchased engagement ring...

My insurance guy (State Farm) recommended a seperate insurance policy for the ring rather than include it on the homeowners policy. He said if it's on the homeowners, then it's basically only covered if it's stolen from the home.

The seperate policy will cost $90 for a year of $4500 coverage. The $4500 coverage is based on the "estimated retail value" appraisal provided with the ring purchased from BlueNile.com. This will cover most everything that might happen to the ring... prong breaks and diamond falls out, robbed at gunpoint, falls in garbage disposal, etc.

Does this all sound legit?
 
Hi Jim-
I''ve worked in insurance for 13 years. What you have been told is not true. If you do not "schedule" the ring individually on your homeowners policy, you are only covered for the named perils on the policy, ie fire, theft, wind, ice, etc. However, if you schedule, or add a rider as some say, to your policy this gives you "all risk" coverage including mysterious disappearance-the most common...I lost it and I don''t know where...damage to the ring, etc. I had a ring scheduled on my homeowners policy and somehow broke the center stone off. My homeowners policy paid to replace & reset the stone at an equal value and quality. You can pick a deductible that is different from your policy deductible, however we almost always add jewelry items at a zero deductible as the cost difference is very minimal. We have insureds with jewelry schedules on their homeowners policy''s in the high six figures. The only time we would suggest a seperate policy is if there is an exaggerated number of items that are changed often or very high valued pieces. Our companies require an independent appraisal of any item valued over $3,000 and if it is a high value (typically $20-25k and over although it depends), some assurance the item is kept secure when not worn. You should have no problem adding the ring to your policy with very little effort and cost! Sorry for the long winded answer-I hope this helps
emsmile.gif
 
Date: 10/20/2006 4:01:46 PM
Author:jimtheideaman
For my recently purchased engagement ring...


My insurance guy (State Farm) recommended a seperate insurance policy for the ring rather than include it on the homeowners policy. He said if it's on the homeowners, then it's basically only covered if it's stolen from the home.


The seperate policy will cost $90 for a year of $4500 coverage. The $4500 coverage is based on the 'estimated retail value' appraisal provided with the ring purchased from BlueNile.com. This will cover most everything that might happen to the ring... prong breaks and diamond falls out, robbed at gunpoint, falls in garbage disposal, etc.


Does this all sound legit?


yes, schedule it as a rider and you'll be fine. just include a detailed appraisal if you're picky about what they replace your diamond with. most policy's state they will replace with like kind which may not be acceptable to you.
 
I am pretty sure the State Farm agent must have meant adding a rider to the policy as opposed to the blanket coverage on jewelery contained in the basic policy. We add any jewelry over $2500 or so to our homeowners policy. Ours works out to be about $1 per hundred of coverage (so about $100 per year to insure a $10,000 item).
 
The insurance agent said it is a completely different policy so now I will have a car insurance policy, a homeowners (which is actually a condominium and I think there may be some differences here vs. an actual home since for instance my HOA fees cover insurance for say fire to the entire building) and then finally a jewelry policy. My normal condo insurance through State Farm only covers $1000 in jewelry. Supposedly if I add these 2 rings to it, they will only be covered if stolen from the home. By having a totally seperate policy, pretty much everything is covered. Maybe this is more clear now.... or maybe he's still telling me something wrong.
 

Every insurance contract is different but this is not the way a standard State Farm homeowners policy works in Colorado. Call the company 800 number and speak with one of the people there about what is and what is and what is not covered under your homeowners policy with regard to jewelry losses. I think you may have a miscommunication with your agent. You may also want to ask if this new policy is a ‘rider’ or ‘schedule’ on your homeowners’ policy or if it truly is a stand alone policy. Stand alone personal property policies are not an option that are generally available here from State Farm.


Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
 
Jim: Do you live in a coastal area? Some homeowners carriers are freezing their liability or withdrawing from coastal areas due to the hurricane experiences of previous years. Your agent may be looking at another company to insure your ring because your homeowners carrier won''t provide any expanded coverages. It''s just a guess, but it would explain your agent''s recommendation.

Sue Fritz
Jewelers Mutual Insurance Company
 
Date: 10/23/2006 9:10:39 AM
Author: Sue Fritz
Jim: Do you live in a coastal area? Some homeowners carriers are freezing their liability or withdrawing from coastal areas due to the hurricane experiences of previous years. Your agent may be looking at another company to insure your ring because your homeowners carrier won''t provide any expanded coverages. It''s just a guess, but it would explain your agent''s recommendation.

Sue Fritz
Jewelers Mutual Insurance Company
Hi Sue,

This has happened to many homeowners in the South Shore area of Massachusetts.(coastal area cancellations).

www.metrojewelryappraisers.com
 
Date: 10/23/2006 1:43:15 PM
Author: Modified Brilliant
Hi Sue,

This has happened to many homeowners in the South Shore area of Massachusetts.(coastal area cancellations).

www.metrojewelryappraisers.com
Jeff,

You get hurricane damage in Massachusetts?

People about the state say that Denver produces a lot of hot air but I've never heard of an insurnace claim based on it.

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