Insured by "Perfect Circle" (JM), but...

[msop04]

My ering has been insured by JM since its purchase. My plan states that JM will pay for a diamond and setting of like or better specs -- which is great! Here's the thing... DH isn't happy with our premium. He thinks it's "way too much" and that "we'll pay for the ring several times over and never use the policy." My thoughts are that it's insurance -- good insurance -- and peace of mind. I would just say "whatever" and go on with it, but it's really starting to cause some friction... so I figured I'd ask for the advice of other PS members.

Our annual premium is $588, and I didn't have a problem with it, but the hubbs is having a fit. He's okay with having a lesser coverage, since we have agreed to put the money we would save by switching providers into a separate account to use if the unforeseen happens and we find ourselves replacing my ring.

The JM policy is based on the appraisal, which we all know is inflated. Would it be a good idea to decrease our coverage with JM? Will they even do that? Should we consider another insurance company? If so, can someone recommend one? What are some of your experiences with your insurance provider -- good and bad? Any and all suggestions are welcomed.

Thanks in advance.

 

[hawk25]

You can decrease the coverage with JM, but it has to be equal or more than the purchase price. I did it with my ring from WF, and specified a value that was 15% more (to account for inflation).

What percent of the appraised cost is your annual premium? Mine's 1.4% annually, so it'll take 71 years before the accumulated premiums equal the appraised value, which I find well worth it for me.

ETA: I remember JM allows you to use the invoice as an appraisal if it's less than $5000, but there might be a separate set of rules for ones over $5000, which may include whether you can lower the insured value.

 

[ame]

My ering has been insured by JM since its purchase. My plan states that JM will pay for a diamond and setting of like or better specs -- which is great! Here's the thing... DH isn't happy with our premium. He thinks it's "way too much" and that "we'll pay for the ring several times over and never use the policy." My thoughts are that it's insurance -- good insurance -- and peace of mind. I would just say "whatever" and go on with it, but it's really starting to cause some friction... so I figured I'd ask for the advice of other PS members.

Our annual premium is $588, and I didn't have a problem with it, but the hubbs is having a fit. He's okay with having a lesser coverage, since we have agreed to put the money we would save by switching providers into a separate account to use if the unforeseen happens and we find ourselves replacing my ring.

The JM policy is based on the appraisal, which we all know is inflated. Would it be a good idea to decrease our coverage with JM? Will they even do that? Should we consider another insurance company? If so, can someone recommend one? What are some of your experiences with your insurance provider -- good and bad? Any and all suggestions are welcomed.

Thanks in advance.

Your only other ring insurance options besides JM is a rider on your homeowners since Chubb won't write standalone jewelry policies anymore, and they wouldn't be cheaper anyway. You can see how much an jewelry only policy on your homeowners would be comparatively and see how the claim works by comparison, but the rate is contingent on where you live AND the appraisal value, not just the appraisal value. I don't think it's worth the risk to cut it if you can't easily afford to replace your ring without full coverage.

 

[hawk25]

I think I remember reading somewhere that JM offers discounts if you're with them after so many years. It wouldn't be very much, but it's better than nothing. Same with the safe discounts, if you can pick one up cheap and bolt it to the floor, that'll lower your premiums as well

 

[msop04]

You can decrease the coverage with JM, but it has to be equal or more than the purchase price. I did it with my ring from WF, and specified a value that was 15% more (to account for inflation).

What percent of the appraised cost is your annual premium? Mine's 1.4% annually, so it'll take 71 years before the accumulated premiums equal the appraised value, which I find well worth it for me.

Is this policy (bolded) the norm with most insurance providers?

Percent of appraised cost/annual premium = 1.48% -- I think I did this right... (premium/appraised value) x 100 = %
Percent of purchase price (+15%)/annual premium = 1.86%
Percent of purchase price/annual premium = 2.15%

Do you think this will make a big difference?

Thanks!

 

[msop04]

Just found email with my actual insured value -- it's higher than the appraised value (for inflation)... maybe I should call and change it to the price we paid??

Percent of insured/annual premium = 1.42%

 

[SB621]

I insure everything for purchase price plus 10% (inflation). Why would you pay for preimums on an inflated price? that makes no sense to me so I'm with your DH on that. To insure my entire jewelry collection I don't pay $588 a year...that is crazy for 1 piece.

 

[yennyfire]

I insure everything for purchase price plus 10% (inflation). Why would you pay for preimums on an inflated price? that makes no sense to me so I'm with your DH on that. To insure my entire jewelry collection I don't pay $588 a year...that is crazy for 1 piece.

I do the same as SB...learned the hard way that paying inflated premiums based on appraisal value is useless since they give you replacement value, which is usually what you paid or less since the large insurance companies have access to better prices than the average consumer since they are a huge customer of the diamond industry.

 

[msop04]

Your only other ring insurance options besides JM is a rider on your homeowners since Chubb won't write standalone jewelry policies anymore, and they wouldn't be cheaper anyway. You can see how much an jewelry only policy on your homeowners would be comparatively and see how the claim works by comparison, but the rate is contingent on where you live AND the appraisal value, not just the appraisal value. I don't think it's worth the risk to cut it if you can't easily afford to replace your ring without full coverage.

Thanks ame, and I agree with this. Why can men be so cheap?? If it was for his big ski boat he might feel differently.

 

[msop04]

I insure everything for purchase price plus 10% (inflation). Why would you pay for preimums on an inflated price? that makes no sense to me so I'm with your DH on that. To insure my entire jewelry collection I don't pay $588 a year...that is crazy for 1 piece.

JM requested the appraisal, but used it instead of purchase price... is this the norm?? If not, I need to call them and get this thing straightened out. Thanks, SB.

 

[msop04]

I insure everything for purchase price plus 10% (inflation). Why would you pay for preimums on an inflated price? that makes no sense to me so I'm with your DH on that. To insure my entire jewelry collection I don't pay $588 a year...that is crazy for 1 piece.

I do the same as SB...learned the hard way that paying inflated premiums based on appraisal value is useless since they give you replacement value, which is usually what you paid or less since the large insurance companies have access to better prices than the average consumer since they are a huge customer of the diamond industry.

Thanks yenny...

Ok, so basically I've been taken for a ride by JM... from what you guys are saying, they should've based it on what I paid and not the appraisal value. When I originally spoke with them, they said they needed an appraisal so that they'd "know what it would cost to replace" the setting and diamond.

This really ticks me off... I thought I was doing the right thing by giving them what they asked for, but clearly it's not normal to pay the kind of premium we have. Learning experience, for sure.

 

[Laila619]

Wow, $588 a year for one ring? That is very high. I am with your DH on this one.

 

[msop04]

Is this common practice for insurance companies to base premiums off of appraisals?? I plan on calling them today and try to get this taken care of ASAP. Does anyone have any advice as to what I need to say or do?

"Hey JM, since you guys have screwed me for a little over 18 months, I'd like to get this fixed for good..." doesn't sound very professional... LOL

 

[msop04]

Wow, $588 a year for one ring? That is very high. I am with your DH on this one.

I am now!!! I had NO IDEA that it was supposed to be based on price paid!! I just got off the phone with my JM rep and she said that I could email or fax a copy of the receipt to them, but that it would limit my coverage -- ummm... duh!! I'm okay with that seeing as that's what it would cost to replace anyway! I am so furious... at JM and at myself.

Thanks to everyone for the advice. I really appreciate it.

 

[msop04]

...needless to say, I will be apologizing to DH tonight.

Pricescope saves the day!!! Thanks guys!!!

 

[SB621]

msop from my experience insurance companies will typically insure for what you tell them or they will have options like it could be appraisal price or purchase price with receipts. You need to call and talk to them.

To give you some idea to insure my 5ct I don't even pay $100 a year.

 

[msop04]

msop from my experience insurance companies will typically insure for what you tell them or they will have options like it could be appraisal price or purchase price with receipts. You need to call and talk to them.

To give you some idea to insure my 5ct I don't even pay $100 a year.

I have called and spoken with my rep... I explained that I would rather have coverage based on what I actually paid. She told me to submit the receipt(s) and that JM would "review" and make a decision whether or not they would change my premium based on the new amount. I kid you not, this is what she said.

I'm so confused! Why on God's green earth would my premium be so high?? We live in a nice area of town, I own my own home, and we have an alarm system! If you don't mind me asking, who is your insurance with SB? I am very interested in changing after this conversation with the SA from JM. I'm not happy. At all.

 

[NonieMarie]

I was wondering the same thing about the insurance. My tennis bracelet, adding 10% would be $5500. The insurance on that is $83 but I paid $123! The same happened for my eternity and earrings. A few months ago I had my diamond pendant appraised.
It is a 1.08 g vs2 ex cut. It came back a whopping $13,000. I told the appraiser that that was too high but he said that would be the cost for him to replace it. The premium is $195 but I think that the value should equal a premium of $120.
If I have an appraisal for $13000 can I ask that it is covered for $8000? I don't want to take a $5000 deductible because I would be afraid that they would replace with an $8000 pendant and then deduct the $5000!

Just read your new post. I am going to call JM too.

 

[nowicanseethemoon]

Re: Insured by "Perfect Circle" (JM), but...

I'm very interested in this topic because I will be purchasing insurance in the next few weeks and I don't really know how it's done. I'm learning a lot, but I'm sorry you're having so much trouble with your policy.

 

[SMC]

Re: Insured by "Perfect Circle" (JM), but...

I have insurance with JM. They required an appraisal for my piece (they said they only take receipt as insured amount if the price was < $5000). I got an appraisal that matched my purchase price. I think you can ask the appraiser to specify any reasonable amount for the appraised value.

I also put my copay at like $500 (you can specify more) which decreased the amount of my premium as well.

 

[Laila619]

msop from my experience insurance companies will typically insure for what you tell them or they will have options like it could be appraisal price or purchase price with receipts. You need to call and talk to them.

To give you some idea to insure my 5ct I don't even pay $100 a year.

Wow, who do you insure with? That is very reasonable.

 

[bgray]

we have $125,000 of jewelry coverage with my e-ring a separate item for approximately $3000 a year. This is attached to our homeowners through Chubb. My ring is covered at the purchase price which is significantly less than the appraised price. Rather get the purchase price back and pay the difference than pay it in premiums

 

[msop04]

I was wondering the same thing about the insurance. My tennis bracelet, adding 10% would be $5500. The insurance on that is $83 but I paid $123! The same happened for my eternity and earrings. A few months ago I had my diamond pendant appraised.
It is a 1.08 g vs2 ex cut. It came back a whopping $13,000. I told the appraiser that that was too high but he said that would be the cost for him to replace it. The premium is $195 but I think that the value should equal a premium of $120.
If I have an appraisal for $13000 can I ask that it is covered for $8000? I don't want to take a $5000 deductible because I would be afraid that they would replace with an $8000 pendant and then deduct the $5000!

Just read your new post. I am going to call JM too.

OMG, you have a $5000 deductible??!! Yeah, probably need to call as well. Sounds like you were fed the same crap. No wonder they don't ask for receipts!! They can make so much more money on inflated appraisals! <sigh...>

Well, this sucks for all involved (except JM, of course)... I'm just glad my DH griped enough for me to post, and I'm very thankful to have PS members who are so willing to help. **silver linings... silver linings... cup half full...**

Who am I kidding, I'm still pi***d!

 

[diamondseeker2006]

msop from my experience insurance companies will typically insure for what you tell them or they will have options like it could be appraisal price or purchase price with receipts. You need to call and talk to them.

To give you some idea to insure my 5ct I don't even pay $100 a year.

SB, what you have is highly unusual and must have to do with fact that you are military and use USAA. I don't know of anyone who pays less than $1 per thousand coverage. So she can't expect to find that kind of rate unless her husband has also been in the military. I'd have all my things insured, too, if I had premiums that low!

 

[msop04]

Re: Insured by

I have insurance with JM. They required an appraisal for my piece (they said they only take receipt as insured amount if the price was < $5000). I got an appraisal that matched my purchase price. I think you can ask the appraiser to specify any reasonable amount for the appraised value.

I also put my copay at like $500 (you can specify more) which decreased the amount of my premium as well.

Very helpful information, sortmon -- I will take this avenue, since JM will most likely deny my request (over $5K) anyway... Thanks! By copay, do you mean deductible?

 

[NonieMarie]

I was wondering the same thing about the insurance. My tennis bracelet, adding 10% would be $5500. The insurance on that is $83 but I paid $123! The same happened for my eternity and earrings. A few months ago I had my diamond pendant appraised.
It is a 1.08 g vs2 ex cut. It came back a whopping $13,000. I told the appraiser that that was too high but he said that would be the cost for him to replace it. The premium is $195 but I think that the value should equal a premium of $120.
If I have an appraisal for $13000 can I ask that it is covered for $8000? I don't want to take a $5000 deductible because I would be afraid that they would replace with an $8000 pendant and then deduct the $5000!

Just read your new post. I am going to call JM too.

OMG, you have a $5000 deductible??!! Yeah, probably need to call as well. Sounds like you were fed the same crap. No wonder they don't ask for receipts!! They can make so much more money on inflated appraisals! <sigh...>

Well, this sucks for all involved (except JM, of course)... I'm just glad my DH griped enough for me to post, and I'm very thankful to have PS members who are so willing to help. **silver linings... silver linings... cup half full...**

Who am I kidding, I'm still pi***d!

No, I do not have a 5k deductible. My deductible is 0. I just talked to JM. It looks like I will have to go back to IDJ and get new appraisals for my items I purchased from them. Also, I will be going back to the jeweler that appraised my pendant and try to reason with him that I don't want to pay an extra $75 per year for coverage I don't need.
I guess what we should remember is that when anything new, over 5k, is purchased we need to ask for the appraisal to be 10-15% over the purchase price, no more.

 

[diamondseeker2006]

msop, JM requires an appraisal for rings over a certain cost, and someone has suggested it is $5000. I have my coverage with Chubb, but when my daughter got engaged, they used JM and that is what they were told.

The mistake you made was using an inflated appraisal to insure. I always use my sales receipts with Chubb because all I care to do is protect the investment I have made in the diamond. I would never, ever make a claim for setting damage because making claims hurts you in premiums later. So I will insure my pieces for what I paid, and if prices go up 20% over a few years, I'll evenutally increase the coverage.

The thing you always have to do is talk to an appraiser beforehand and explain that you need an appraisal for insurance and you already know the value, as it is what you paid. That is the TRUE replacement value!!!! You can easily track prices over time by searching PS vendors. You just need the appraiser to see your sales receipt or comps of where you'd replace the stone so that the value can be appropriate on the appraisal.

So really, you do not need to speak to JM. You need to find an appraiser who will cooperate with valuing your item at the price you can replace it for. Then you send the new appraisal to JM and tell them you have an updated appraisal and want your items to reflect the new value on your policy.

 

[Dreamer_D]

I insure everything for purchase price plus 10% (inflation). Why would you pay for preimums on an inflated price? that makes no sense to me so I'm with your DH on that. To insure my entire jewelry collection I don't pay $588 a year...that is crazy for 1 piece.

I do the same as SB...learned the hard way that paying inflated premiums based on appraisal value is useless since they give you replacement value, which is usually what you paid or less since the large insurance companies have access to better prices than the average consumer since they are a huge customer of the diamond industry.

Exactly. Purchase price (assuming a retail purchase) plus 10%. And I get an appraisal that fits that value.

You can also include a deductible that lowers your rates considerably. I have a $1000 deductible.

 

[Dreamer_D]

Is this common practice for insurance companies to base premiums off of appraisals?? I plan on calling them today and try to get this taken care of ASAP. Does anyone have any advice as to what I need to say or do?

"Hey JM, since you guys have screwed me for a little over 18 months, I'd like to get this fixed for good..." doesn't sound very professional... LOL

Why is this JMs fault? They insure based on the information you provide. Your information includes an appraisal stating an inflated value. How is that their fault?

Go get a new appraisal and insist it reflect your purchase price. Take your receipt with you.

ETA: Ditto this...

So really, you do not need to speak to JM. You need to find an appraiser who will cooperate with valuing your item at the price you can replace it for. Then you send the new appraisal to JM and tell them you have an updated appraisal and want your items to reflect the new value on your policy.

 

[msop04]

msop from my experience insurance companies will typically insure for what you tell them or they will have options like it could be appraisal price or purchase price with receipts. You need to call and talk to them.

To give you some idea to insure my 5ct I don't even pay $100 a year.

SB, what you have is highly unusual and must have to do with fact that you are military and use USAA. I don't know of anyone who pays less than $1 per thousand coverage. So she can't expect to find that kind of rate unless her husband has also been in the military. I'd have all my things insured, too, if I had premiums that low!

Me too!! Seriously, SB, you are very lucky to have such a great deal!!