Need help with insurance concerns please

[HHurst85]

Hello all! I'm expecting my JA diamond in the mail tomorrow that Gypsy so nicely helped me pick out I have some questions about insurance- insuring the diamond separately from the setting specifically.
- Would I be better ensuring my new diamond and setting through my homeowner's (which I did previously for my lost set) or through Jeweler's Mutual?

- I am purchasing the setting from a local (and well reputed) jeweler here at home who will also be setting the diamond for me in-store. Should I insure the diamond and setting separately (as they are from two different vendors)?

- I definitely would like to have insurance on the diamond before I take it to the jeweler to be set. It makes me very nervous to take this $4k investment anywhere without insurance. That being said, should I have the diamond appraised before setting up the insurance policy or do JA diamonds come with appraisals at delivery?

 

[diamondseeker2006]

Use Jeweler's Mutual. They are about the only ones who will insure the stone before it has been set. You do have to give them the info on the setting as that is part of the value of the ring. Call and they will tell you what they need. Once your stone is set, get that jeweler to write and appraisal for the ring at the value of what you paid for the stone plus setting. That is your true replacement value since you bought both new. An inflated appraisal does you no good and you just overpay for premiums. I hope you'll post pictures of your ring when it is finished!

 

[HHurst85]

Thank you Diamond Seeker!
Just curious...why would you not want to ensure it for the appraised value? If something happens, I would be very upset if I was unable to get similar stone for the same price that I paid? Does JM replace related to similarity to previously owned item vs. cash reimbursement?
I am waiting to hear back via email from JM and also going to contact my homeowner's again for comparison. Thanks again for your help!

 

[HHurst85]

So... I spoke with my homeowner's (Liberty Mutual) and they will do cash payout for claims (I have used this before and had no problems) and should cover damage or loss of the stone itself. I've calculated annual premium to be about $100 through them ($12.50 per $1000 insured). However, my big concern is that they will not provide coverage for the loose stool. I am concerned about having the loose stone set by my jeweler (not where I purchased) and something happening before it gets back to me and I can have it appraised for insurance coverage.
Jeweler's Mutual does sound promising, but my concern is with the replacement-only reimbursement vs the cash out option I would get with my Homeowner's. Goodness forbid I lose another set, but down the road if there is a loss, I may want to put that money toward upgrade (as I did this time) vs. replacement for same thing. Also, it concerns me as my diamond and setting are from two different vendors and I'm not clear on how replacement would work. I do appreciate JM ability to ensure the loose stone before setting, and rough quote for premium is $87/year. Any other thoughts on this?

 

[diamondseeker2006]

Okay, then I have another suggestion. The worst problem with having it on homeowners is if you ever have to make a claim. That could potentially affect your premiums on the whole policy. That is why I keep mine separate. But I have Chubb and not JM. Chubb won't write jewelry only policies anymore, but there is a company that does. They offer both replacement and cash payout. Not sure if they work in all 50 states or not, so you'd have to call and ask.

http://www.touchstoneinsurance.com/index.html

The reason to not overinsure is that say the diamond is bought for $5000 and that is a normal retail price, the insurance company is just not going to spend $10k to replace it if it is overinsured. They are still only going to pay the $5k to replace it. The biggest thing is you'd be paying higher premiums with an inflated appraisal even for the cash payout policy. I always insure for my purchase price when I have bought at retail. Obviously you need to check diamond prices every few years and get a new appraisal if the value has gone up significantly. Mine has inflation protection so if it went up in value maybe 20%, they'd still cover that. And actually, Chubb also sends me a letter each year which allows me to increase the coverage without another appraisal if necessary. There are periods of time where diamond prices are stable and even decline, so it is just not wise to overinsure.

 

[diamondseeker2006]

Oh, and did your diamond come???

 

[newjourney]

I recently insured my fiance's ering with Jewelers Mutual so just thought to share my experience. I called JM before signing up and had a very pleasant chat with one of their agents. I was very impressed with the flexibility of their policy -- you choose how much you want to insure (no lower than the purchase price, of course) and the jeweler of your choice for repair/replacement services. Because I purchased a loose stone and setting from Whiteflash (who has a partnership with JM), the online application process was quite easy. I simply had to enter my email address and the order confirmation number and all my information was transferred from Whiteflash.

Here's the nitty gritty... after entering my email and order confirmation, a premium quote appeared. I found out from the phone conversation that this quote was generated based on Whiteflash's appraisal. This was great since I wouldn't have to shell out for an appraisal. Both the loose stone and setting were appraised separately and you could see the respective values. They were 40% higher than the actual purchased price, which seemed typical. Based on these values, a generic premium was generated at 1.5% for me. But based on my actual location, that rate turned out to be 2%. Rats! One good thing is you're able to dictate the amount you want to insure. I spent a bit of time looking over the Diamond price chart at the PS' home page and figured paying for a premium based on 140% of the purchase price is not prudent. Instead, I decided to insure at 115% for the whole ring to buffer possible inflation. Diamondseeker brought up a good point. I failed to ask about JM's inflation protection when I was on the phone. But I had a feeling they don't offer that protection. The agent told me that after a couple years, JM would contact me asking if I'd like to increase the declared value by 3% to accommodate for inflation in lieu of a new appraisal requirement. Again, I can either decline that or accept that solicitation. I initially thought about declaring the insured values at the purchased price, but got discouraged at the thoughts of not being able to get the same ring specs a couple years down the road should the market goes up. In reality, diamond prices have been on a downward trend within the past 2 years, so I may be paying a slight premium. However in the end, it's for peace of mind since like any markets, diamond's is not immuned to cyclical fluctuations. Finally, in terms of payment you'll have the option of paying a lump sum up front or by 2 payments, 4 months apart.

Regarding one of your questions, I'd insure the stone before having it set since you're not doing everything under one roof. You can always add the setting to your insurance once everything is done.

Hope this help. Good luck!

 

[diamondseeker2006]

newjourney, your information should be helpful to her. I agree that if I were insuring a WF stone (and I do have my WF studs on my insurance), a replacement policy would be fine! I think your reasoning for insuring for the amount you did is fine. During the time I have been at PS, I have seen periods of increase and periods of decline in diamond prices. The last couple of years prices have been stable and declining which is why I am glad I am only paying premiums on what I paid. The great thing about your WF stone is that you can compare prices on the WF site each time they ask you if you want to increase the value. That is a very good that they offer the opportunity to increase value by 3% periodically and that would make me comfortable with insuring through them for purchase price or slightly above.