Insurance....When is it worth it???

[sslkrissi]

Hello,
Well, now that I have made my first big purchase on jewelry, I am wondering whether or not I should get insurance. It seems that it would only cost $100 a year or less. Is it worth it? I know to a lot of people, $3,300 isn''t that much on diamonds, but to me, it is a fortune. I would just die if I lost one of these earrings. How does it work exactly? Since I purchased these earrings from WF, I figured I would just use the company that is on their website, Touchstone. Any one have any experience with them? Also, when you are answering the question about the value of the item, do you go by what you paid, or what the appraisal says the value is? For example, I paid $3,300 but the appraisal that it came with says the value is around $5,000. Which value do I use?

Thanks

 

[Skippy123]

Do you have State Farm for your house? I actually insured my ring and it was I think $50 a year on a $7,000 stone and I lost it after 7 years. I was so sad but then State Farm gave me a check to replace it. I think State Farm is cheaper than Chubb or other insurance co's. I would insure the stone for what it would cost to replace it; you can increase the amount from year to year. I hope that helps and yes, I would insure it; I am glad I insured mine because we almost didn't!!!

 

[neatfreak]

Insurance is worth it when you can''t comfortably afford to replace the item in case of loss, breakage, or theft. So by your own admission, your earrings are worth a fortune to you, I assume that it means you couldn''t easily replace them with your existing bank account. That means that you can''t afford NOT to have insurance.

You should insure them for the actual price it would cost to replace them in the marketplace. Even though the appraised value is higher, since YOU as a direct consumer just paid $3300, that means that you could also get the same thing tomorrow for $3300. Just make sure you update the appraisal every few years for inflation.

 

[Rosebud08]

I had no choice but to insure my wedding set. I am forgetful, clumsy, and accident prone ... My plan (from State Farm), covers all of my jewelry.

 

[sslkrissi]

I am sooo confused... if I am supposed to go with what I paid for them, then why is there even an appraisal included with my purchase, and why would the insurance company ask for either the receipt or the appraisal? It seems as though they are giving me the option to choose which amount to insure them for. Sorry for all the questions, I just am clueless when it comes to this

 

[somethingshiny]

I insure my jewelry for appraisal value. NOT inflated appraisal, though. Just what you could expect to pay at a B&M. For the extra $15 a year to cover at the higher price, I think it''s worth it. If I lost something I really loved, I wouldn''t want to replace it exactly, I would want an upgrade, and the extra money would come in useful! My jewelry insurance is added on my home insurance. It''s $9 per $1000 value yearly.

 

[somethingshiny]

BTW- my insurance REQUIRES an appraisal for any piece that is over $3000. You may HAVE to insure for the appraised value.

 

[diamondringlover]

My ring is insured thru State Farm for the appraised value, they insisted on an appraisal, it cost me around $65 a year and my ring is appraised at $6300, I have no deductible.

Is it worth it to have insurance, heck ya, my sister "threw" her rings out the car window by accident last winter the appraised value of her rings was around $10,000, she did not have insurance, she was very upset to say the least. My thoughts are if you insure houses and cars, why not insure jewerly.

 

[surfgirl]

If you cannot afford to replace the rings if they get lost, then it''s probably worth insuring it. For your price range, the average homeowners policy usually covers about $1500. or thereabouts for a piece of jewelry not insured separately. So you could theoretically get half the amount back if you have a basic homeowners policy. But if you dont have insurance, I''d get the ring insured...but it shouldn''t cost $100. year for a ring of $3.5K value. As for which value to use, how much would it cost to replace the ring really? That''s the price I''d use. We insured my ring for it''s replacement value, which was not grossly inflated.

 

[neatfreak]

My ring came with two "appraisals". One for the price we paid and one for the "inflated" price. And BTW: The reason I don''t recommend using the insured amount is this. If your rings go missing, the insurance company will cut you a check for the COST OF REPLACING YOUR RING. NOT necesarily the amount it is "insured for". So if you insure for $10,000 but the ins. company determines that your ring could be replaced for $3500, you would get THAT amount in a cash out, or they would give you that amount to work with a jeweler to replace it. They don''t just hand over the amount you insured it for, so IMO, it isn''t worth it to pay the extra premiums.

 

[lyra]

Whichever insurance you choose, make sure to read the fine print. I''m in Canada, so it may be a little different, but do make sure that you are covered for replacement value, whatever actual figure that is. My insurance requires an independent appraisal like others have said. You may also look into a blanket jewellery clause in your homeowner''s insurance if that''s more economical for you. In that case, they provide a set amount of $ coverage only, without specifics on the jewellery if it is under the blanket amount. You might still need the appraisal to prove you owned the piece of course. Also make sure that you have the equivalent of "all risks", which means basically that you''re covered no matter what unless stated otherwise. I have known a few people who lost their rings, as opposed to having them stolen. Good luck!

 

[sslkrissi]

The insurance that I am considering is Touchstone. It is on WF's website. Here is the link: http://whiteflash.com/info/insurance.aspx. It says that they will replace the jewelry with like kind and quality from whiteflash.com.

The price I paid for the earrings was $3241. But, when I received them from WF, they came with an independent appraisal which lists the value at $5,000 and change (can't remember the exact amount). When you read about Touchstone on the website, it says that the insurance order has to be accompanied by EITHER the purchase receipt or the appraisal. When I look on WF's website, I can't exactly find a replacement set for the price that I paid. Everything seems to be higher priced.

Based on what some are saying, $100 annually does seem high, but when I enter in my information for the quote from Gemshield, that is the price it gives me. Maybe it is because of where I live (Miami)?

Still confused

ETA: Oops, I forgot to mention, that I do not have a homeowner's insurance policy. I rent and do not have renter's insurance either.

 

[lyra]

Eep. Get some renter''s insurance, please?

I may be a little anal as far as insurance goes, but you often see unsuspecting people lose everything for lack of a few hundred dollars worth of insurance. It happens. I tend to over-insure just for the reassurance. Think of it as a necessity, not an optional thing.

Since you are already seeing that it would be difficult to replace the earrings for what you paid for them, it would be wise to insure them for the higher appraised value. You need to get new appraisals done periodically too, in case the value goes above what they are worth "today".

 

[jasontb]

Two people have already said it, but since you asked the question and I feel so passionately about this topic I will say it a third time:

Insurance is only worth it when you cannot afford to financially handle the situation you are insuring against. When an event would put you in a financial hole so deep you could not get yourself out.

So I would argue that insurance is never worth it for jewelry or any luxury item. Why? Because you don''t *have* to replace lost jewelry. You certainly don''t have to buy something that costs as much as the original you lost.

OK, I''m getting off track really. Let''s assume that you *will* replace the lost jewelry with something of equal value.

Insurance is only worth it if you cannot afford to replace the jewelry. If you could manage to shell out another $3300, then you would be better, on average, in the long run, to skip the insurance and save that $100 per year.

Remember, insurance companies make LOTS of money. And their salespeople make good money. All that money comes from their customers. It''s the insurance company that benefits, not the customer. On average, in the long run, you will be better off without insurance. Sure, I''ll feel like a idiot if I loose the ring and don''t have insurance. But personally, I''d feel like a bigger idiot after 20 years when I still have the ring and I think about the PILE of cash I''ve given the insurance company (think about all that money compounding over all those years...WOW!). And the odds are that you will still have the ring in 20 years and I''ll have an extra $6,000.