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Insuring E-Ring: Insure to Appraisal or purchase price??

fmzip

Rough_Rock
Joined
Feb 22, 2011
Messages
83
So I just got my BGD yesterday and I'd like to insure it. My question is this. I purchased this diamond on the same day BGD went up by 10%. Fortunate for me, they honored the prior days price. So I have a "Paid" receipt which is substantially less than today's replacement cost.

I am going to have the ring appraised on Monday.

So what do I do in the meantime? If I apply online through Jeweler's mutual, do I first insure it for the price I paid, or the price it is now worth? Or do I wait until Monday and insure for the appraisal value if it is higher? Sort of worried about not having insurance on a $15K ring even if it's over the weekend.
 

StoopidMonkey

Shiny_Rock
Joined
Mar 11, 2011
Messages
127
I would ask Jeweler's Mutual about the timing of the insurance and your options to update the value after the fact, but as a general rule I'd insure it for the higher appraisal price. Point being if something happens to it in the future, the cost of a replacement will be more than you paid for it now. That and the premium increase probably won't be that much more. Give JM a ring and let us know how it goes. I'm interested myself.
 

Regular Guy

Ideal_Rock
Joined
Jul 6, 2004
Messages
5,954
I do think this is a great question.

Routinely, it's represented by insurers that they will replace like kind, and I think JM would let you go back to BGD.

If you can be assured to get the same thing from the same vendor in the case of a loss, and can supply your lowest cost accurate reputation (what you paid), it's hard to see why that wouldn't be your answer. The lower cost represted, the lower your premium would be.

Ira Z.
 

fmzip

Rough_Rock
Joined
Feb 22, 2011
Messages
83
Talked to JM....

They suggested if I were to insure it today, insure for what the market price is, not what I paid for it. They will ultimately go by the appraised market value, not the purchased price.

JM requires an appraisal submitted within 10 days of when I purchase the coverage.

They also suggest the ring be inspected every 6-12 months, although it isn't a "requirement". It's obviously a good idea to keep track of market conditions as the prices fluctuate as to not be over/under insured.
 

StoopidMonkey

Shiny_Rock
Joined
Mar 11, 2011
Messages
127
So you can call the insurance in and "activate" it for whatever value you tell them over the phone (in your case a little over what you paid) and then ultimately set the final value based on the appriasal you submit within 10 days? Good to know.
 

centralsquare

Ideal_Rock
Joined
Jan 18, 2009
Messages
2,201
fmzip|1313687782|2993479 said:
Talked to JM....

They suggested if I were to insure it today, insure for what the market price is, not what I paid for it. They will ultimately go by the appraised market value, not the purchased price.

JM requires an appraisal submitted within 10 days of when I purchase the coverage.

They also suggest the ring be inspected every 6-12 months, although it isn't a "requirement". It's obviously a good idea to keep track of market conditions as the prices fluctuate as to not be over/under insured.
I agree...insure for what the market price is, especially because prices can certainly continue the trend of increasing and this gives cushion. JM is super easy. I filled something out online and coverage was immediate. From the vendor from which I made my purchase, I didn't have to submit anything...I just had to give an order number (they must have special relationships with some vendors).
 
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