new ring - insurance questions

[mld2t]

So I finally got my ring and am now engaged! We''re both very excited but want to get insurance to cover the investment. I did quite a bit of searching on PS but couldn''t quite figure the whole thing out. My ring is valued at just under $10,000 for insurance purposes.

From what I gathered, Jewler''s Mutual or Chubb would cost around $400-$500 per year. Is that about right?

I called my insurance company and to add additional coverage it would be $86/yr. That covers everything - loss, theft, misplacement, whatever.

Why shouldn''t I get insurance with my current company? And why should I go with JM or Chubb?

Thank you!

 

[denverappraiser]

In most markets JM costs about 1% of the declared value per year so it should be under $100. This varies based on your city so check it yourself with an online quote tool at www.jewelersmutual.com. Chubb rates also vary by zip code and if you aren’t currently a Chubb client you’re also likely to run into a minimum policy size problem. They may not agree to write a policy at all. Ask a Chubb agent.

Details of exactly what is covered also vary from company to company and policy to policy. Ask for details. Also make sure to ask about how they handle losses. Most policies are agreeing to replace with 'like kind and quality' in the case of a loss as opposed to cutting you a check for the declared value. This issue is the usual selling point of Chubb but you're right that they charge higher premiums. It's an important question to understand along with things like deductibles, pair and set clauses, and others.

If you’re happy with your current insurer and their service, by all means you should consider sticking with them but this is a question to ask your agent along with the above. That’s part of what they’re for.

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

 

[noob2010]

Date: 12/1/2009 1:42:54 PM
Author: denverappraiser
In most markets JM costs about 1% of the declared value per year so it should be under $100. This varies based on your city so check it yourself with an online quote tool at www.jewelersmutual.com. Chubb rates also vary by zip code and if you aren’t currently a Chubb client you’re also likely to run into a minimum policy size problem. They may not agree to write a policy at all. Ask a Chubb agent.

Details of exactly what is covered also vary from company to company and policy to policy. Ask for details. Also make sure to ask about how they handle losses. Most policies are agreeing to replace with ''like kind and quality'' in the case of a loss as opposed to cutting you a check for the declared value. This issue is the usual selling point of Chubb but you''re right that they charge higher premiums. It''s an important question to understand along with things like deductibles, pair and set clauses, and others.

If you’re happy with your current insurer and their service, by all means you should consider sticking with them but this is a question to ask your agent along with the above. That’s part of what they’re for.

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

So Chubb will generallly cut you a check rather than find a replacement for you and this is the preferred method?

 

[sonnyjane]

Don''t know about Chubb, and don''t know why you should or shouldn''t just go through your regular insurance, but I have JM and wanted to reiterate what Neil said about it being about 1% of the cost. My ring was $6,000 and my insurance is about $70. It was $56 when I lived in a small town in WA state. Now that I live in San Diego, it went up to $70, but still not a large amount of money IMO. They also cover against damage, loss, or theft. The loss was the real important one to me, I had to make sure that was covered since that''s the most likely issue my clumsy self would have.

 

[denverappraiser]

Date: 12/1/2009 2:25:26 PM
Author: noob2010

So Chubb will generallly cut you a check rather than find a replacement for you and this is the preferred method?

That’s correct. The ‘standard’ Chubb valuable articles policy will have an agreed upon value and in the case of a loss, they will simply pay that amount. You can spend the money to replace the piece, get something else entirely or simply bank it if you wish. They get no vote on where you shop or what you buy. This is not the approach of most companies and on most policies. The more common method is to use the description from the appraisal that you submit as a purchase order and they will use their own vendors to get a bid on what they would charge to replace the item. If the bid comes in lower than the declared value, which is usually does, they will pay up to that amount for that replacement no matter what the appraisal says. You can buy from one of their chosen vendors if you wish or you can pick someone else as long as they aren’t more expensive (or you’re willing to pay the extra cost out of pocket). You have the option to ‘upgrade’ to something more expensive by adding cash but you aren't usually given the opportunity to walk away with cash after a loss.

People like the declared value approach because it gives them more options at the end. People like the replacement type because they are usually less expensive in terms of premiums, often by a factor of 2 or more.

As with all insurance issues, the rules vary from state to state, company to company and even policy to policy. The details are in the contract itself.

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

 

[yssie]

Ditto.


Some insurance is better than nothing. However, often riders on homeowners will cover loss, theft, damage, etc. but only in certain ways - you may have to work with jewellers of their choice, for example, or be given a prepopulated inventory to choose from (I imagine this would drive any PSer nuts!). JM does replacement of like kind/quality but they allow you to choose your own vendor, B&M or online. Chubb (though I don''t think they offer standalone policies anymore?) takes it a step further and simply gives you a cheque, but the premiums are generally higher.


You should NOT be quoted $500/yr on a $10,000 ring, no matter where you live.. The JM website has a "find a quote" feature that you might try.

 

[noob2010]

I have Traveller''s insurance and it seems to be pretty good. The cost is a bit less than JM''s, and the coverage is the same from what I can tell. They don''t do like-replacements, instead they cut you a check. $9-10 per $1000 of the ring value was what I was quoted.

They said they can either use the reciepts to get the value or I can get it appraised and use that value (presumably will be higher than purchase price).

Do you guys think it is better to get it insured at purchase price or get an independent appraisal done and insured at a higher price? If the latter, I''d have to pay about $150 for the appraisal plus the higher cost for coverage.

Please let me know what you think.

Thanks!

 

[noob2010]

Also, I was reading some older threads and the consensus seems to be that insuring at the higher value does not mean that the replacement value will match the appraised value, so the insurance company wins out.

But what if the insurance company sends you a check instead of a like-replacement? Would they send you a check based on a value they determine or the insured value?

Thanks again