Ring Insurance Dilemma: Paying a Fortune to Insure

[trueblue101]

Hi All,
My ring insurance needs to be renewed soon and I feel like I am paying a fortune ($650 a year) with JM. The total cost of the ring was 28k and it was appraised for $29,900 in 2012 (I was sure not to get an inflated appraisal).

I never take it off and live in a safe area so I was thinking of cancelling it. Does anyone have any advice on this? I am so torn on this--I love the protection the insurance provides but I feel like its too expensive.

Any thoughts and/or advice would be great.

Thanks.

 

[danielxlin]

Cancel it! Then protect the ring like you'd protect a newborn.

Take the $650 a year and invest it in a rainy day fund. If you happen to lose the ring despite protecting it like a newborn, then the fund will be there to pay some of the way towards a new ring.

If you don't lose the ring then the rainy day fund will pay for college for your actual grownup newborns.

 

[denverappraiser]

It's easy enough to shop them but I"m going to guess there's something else this story. The 'standard' JM rate is usually about 1% of the declared value although this varies greatly with your location. If you live in Manhattan or downtown LA, that's what the problem is. If you've got a claims history, that's the problem. You can see their rate chart online at www.jewelersmutual.com Call around, it's entirely possible that you'll be able to find a better rate elsewhere and if you can't figure out what the issue is, call them up and ask. Especially with address problems, the companies don't all penalize the same cities in the same ways.

 

[edelweissmaedl]

I don't live in NYC or Manhatten, but I have double the jewelry insured for less than your premium...so I hope you might be able to find a better deal as mentioned.

If not are you willing to spend the full cost to replace again or would you be fine not having that piece replaced? If you saved the $650 for 20 years you would have $13,000 saved. Would you be willing to only spend what you hedged on the replacement? Would $13,000 in a college fund be more important to you (a previous poster pitched for this alternative) I think the more expensive the ring the more worthwhile it is to have the insurance.

 

[ame]

I would strongly suggest you NOT cancel it unless you have that much money available at any given time to pay to replace it.

 

[mns12]

I would strongly suggest you NOT cancel it unless you have that much money available at any given time to pay to replace it.

Agreed! I never,ever imagined I would loose both my ER and WB but crazy things happen, and it happened to me! To say the least, I was devastated. But after several weeks the fact that I had insurance and could replace them was helpful. I could not imagine if I didn't have insurance!! I recently used JM for my new pieces and the premium is a little over 1% I believe.

 

[msop04]

It's easy enough to shop them but I"m going to guess there's something else this story. The 'standard' JM rate is usually about 1% of the declared value although this varies greatly with your location. If you live in Manhattan or downtown LA, that's what the problem is. If you've got a claims history, that's the problem. You can see their rate chart online at www.jewelersmutual.com Call around, it's entirely possible that you'll be able to find a better rate elsewhere and if you can't figure out what the issue is, call them up and ask. Especially with address problems, the companies don't all penalize the same cities in the same ways.

I have JM as well with a similar appraisal and premium... I live in Birmingham, AL, so not living in a metropolis here! I always thought my JM premium was super high as well.

EDIT: I wanted to mention that we live in the suburbs of Bham, so super safe... AND I've never filed a claim.

 

[UrsTx]

True: out of curiosity I entered your $29,900 amount using my zip code (suburb of Austin) in the JM quote feature, and it estimated $538/yr at the $0 deductible level.

I also have JM coverage but I rceived a quote at about half that with Touchstone but they are only a Reapair/replacement program AND I have no experience with them but they told me R/R programs have lower premiums than Cash Payout programs.

 

[Niel]

If you lost your ring tomorrow and had no insurance, how would you feel about the insurance then?

I'd increase your deductible. Happy middle ground.

I just did a quick quote on PC and it gave me $375 premium for 30k ring.

 

[Lookinagain]

Yes, I agree you should increase your deductible but continue to insure the ring at some level. Unless you have 30k handy that you don't mind using to replace it, or you wouldn't care about not replacing it should you lose it, it seems smart to figure out your deductible tolerance and make the deductible as high as your tolerance will allow.

 

[tmorris]

There's another forum post that might be helpful: [URL='https://www.pricescope.com/community/threads/just-switched-insurance-company.212771/']https://www.pricescope.com/community/threads/just-switched-insurance-company.212771/[/URL]

It mentions Lavalier as an alternative that's been cheaper than JM for at least some people.

I've also heard Chubb is amazing...but probably more, not less, expensive than JM.

 

[diamondseeker2006]

Check with Touchstone. They have some new options...AIG, I believe. They have replacement policies like JM and cash policies like Chubb. Definitely compare prices. My Chubb premium is less than yours for over $40k coverage.

 

[crans223]

I was just looking and based on my zip code, it only costs $449 annually with a $0 deductible. You could opt for a higher deductible and pay slightly less, but they kind of skew their deductibles oddly.

Do you own a home or rent? If so, it may be worth taking a look at your homeowner's/renter's insurance policy and seeing how much it would cost it add it onto your existing policy, I heard it can be VERY cost effective for you.

 

[autumngems]

I have Chubb and pay about 420$

 

[kelliemellie38]

I'm running into the same issue. I was just quoted $446 for a $25K value by JM and I live in Houston. I'm debating on getting it appraised to see if I can get a less inflated value, but at the same time, if something were to happen, I wouldn't want the value to be too low.

 

[Zizzy]

We had to get new buildings and contents insurance! Not only would our insurers not insure the ring, they wouldn't insure us at all with the ring on the premises or on my finger as we might be targeted! Barmy! - my 8.24 mm plain solitaire is hardly Kardashian.

Anyway, we changed to more expensive insurers who specialise in high net worth individuals (I wouldn't place us in this bracket) and it is insured as part of the contents as a disclosed item with a £500 excess (I assume "deductible" in Am. English).

I wouldn't dream of not insuring my e-ring or other high value jewellery. I would be distraught to lose it, paying a few £100s a year for peace of mind about replacing it is definitely worth it to me. An unlucky knock, a mugging, accidental loss - is all it takes.

 

[SCARLETTE]

Hi OP,

I was one that started the thread about switching from JM to Lavalier. I also agree with posters that suggested going with a deductible to bring down the premium. I had a 25K insurance policy with JM with a $2500 deductible and paid $371/year. I switched to Lavalier with essentially identical coverage and premium but now a $500 deductible. So if you are going the deductible route, it may be worth it to check out Lavalier.

Another thing to think about: I had my ring appraised for the actual amount I paid. Both JM and Lavalier told me that in their opinion, the ring was worth at least 30K and to insure it for that amount. I declined because if I were to lose it and the cost to replace it was more than 25K, I would happily apply the amount of pay out (25K) towards an upgrade and pay the difference. I am willing to take this risk because chances are I will not lose the ring. So you may want to play with the amount you want to insure your ring - a few thousand dollars less (or whatever the tolerable amount is to you) may lower the premium.

 

[trueblue101]

Hi Everyone,
I am sorry I have been MIA but I got sick and then was traveling. In any event, thanks so much for all of your replies! I am slammed at work and will respond within the next few days.

Thanks again!

 

[MrsWhitney]

Obviously after my experience, with JM, I no longer use them (they dropped me a week after). I have CHUBB. State Farm also is very good is you put in writing the brand and requiring exact type replacement from them.

 

[trueblue101]

It's easy enough to shop them but I"m going to guess there's something else this story. The 'standard' JM rate is usually about 1% of the declared value although this varies greatly with your location. If you live in Manhattan or downtown LA, that's what the problem is. If you've got a claims history, that's the problem. You can see their rate chart online at www.jewelersmutual.com Call around, it's entirely possible that you'll be able to find a better rate elsewhere and if you can't figure out what the issue is, call them up and ask. Especially with address problems, the companies don't all penalize the same cities in the same ways.

It's funny that you mentioned NYC and LA bc I just moved from NYC to LA hence the high premiums. I am going to call them to discuss my options. Thanks for the advice.

 

[trueblue101]

I don't live in NYC or Manhatten, but I have double the jewelry insured for less than your premium...so I hope you might be able to find a better deal as mentioned.

If not are you willing to spend the full cost to replace again or would you be fine not having that piece replaced? If you saved the $650 for 20 years you would have $13,000 saved. Would you be willing to only spend what you hedged on the replacement? Would $13,000 in a college fund be more important to you (a previous poster pitched for this alternative) I think the more expensive the ring the more worthwhile it is to have the insurance.

I would not be okay with it not being replaced should something happen to it so I am not going to give up the insurance (I just start to freak out thinking about how much money it is over the years but I do understand the importance of it). Thanks for the advice.

 

[trueblue101]

I would strongly suggest you NOT cancel it unless you have that much money available at any given time to pay to replace it.

Agreed! I never,ever imagined I would loose both my ER and WB but crazy things happen, and it happened to me! To say the least, I was devastated. But after several weeks the fact that I had insurance and could replace them was helpful. I could not imagine if I didn't have insurance!! I recently used JM for my new pieces and the premium is a little over 1% I believe.

Yes, I agree that crazy things happen and its important to have a good insurance policy in place. I am so sorry to hear about you situation and I hope it all worked out in the end!

 

[trueblue101]

It's easy enough to shop them but I"m going to guess there's something else this story. The 'standard' JM rate is usually about 1% of the declared value although this varies greatly with your location. If you live in Manhattan or downtown LA, that's what the problem is. If you've got a claims history, that's the problem. You can see their rate chart online at www.jewelersmutual.com Call around, it's entirely possible that you'll be able to find a better rate elsewhere and if you can't figure out what the issue is, call them up and ask. Especially with address problems, the companies don't all penalize the same cities in the same ways.

I have JM as well with a similar appraisal and premium... I live in Birmingham, AL, so not living in a metropolis here! I always thought my JM premium was super high as well.

EDIT: I wanted to mention that we live in the suburbs of Bham, so super safe... AND I've never filed a claim.

Hello,
I am shocked that yours is so high for your area. Have you shopped around for different companies by any chance? Thanks.

 

[trueblue101]

True: out of curiosity I entered your $29,900 amount using my zip code (suburb of Austin) in the JM quote feature, and it estimated $538/yr at the $0 deductible level.

I also have JM coverage but I rceived a quote at about half that with Touchstone but they are only a Reapair/replacement program AND I have no experience with them but they told me R/R programs have lower premiums than Cash Payout programs.

I have not heard of Touchstone but will look into them. My JM policy is also R/R--I cannot even imagine what a cash out policy would cost me. Does anyone even do cash out policies anymore (besides Chubb but I heard its only for very expensive pieces)?

Thanks.

 

[JoshuaNiamehr]

trueblue - what do you have your deductible set to?

 

[trueblue101]

If you lost your ring tomorrow and had no insurance, how would you feel about the insurance then?

I'd increase your deductible. Happy middle ground.

I just did a quick quote on PC and it gave me $375 premium for 30k ring.

Hi Niel,
I am thinking that increasing my deductible is the way to go in this scenario. I emailed them and they said that for:
$2500 deductible-22% credit
$5000 deductible- 25% credit
$10,000 deductible- 30% credit.

The $10,000 option will not work because that is more than I wanted to spend in the event of a loss (especially since I am paying a high premium for the insurance.

Do you think the $2500 or $5000 option is better?

Thanks.

 

[trueblue101]

I just did a quick quote on PC and it gave me $375 premium for 30k ring.[/quote]

What area coverage is this premium based on? Thanks.

 

[trueblue101]

There's another forum post that might be helpful: [URL='https://www.pricescope.com/community/threads/just-switched-insurance-company.212771/']https://www.pricescope.com/community/threads/just-switched-insurance-company.212771/[/URL]

It mentions Lavalier as an alternative that's been cheaper than JM for at least some people.

I've also heard Chubb is amazing...but probably more, not less, expensive than JM.

Thanks for the forum link.
I am going to call Lavalier and discuss my options. Thanks!

 

[trueblue101]

Check with Touchstone. They have some new options...AIG, I believe. They have replacement policies like JM and cash policies like Chubb. Definitely compare prices. My Chubb premium is less than yours for over $40k coverage.

I will call AIG as well. Did you get your Chubb policy recently or are you grandfathered in? Thanks!

 

[trueblue101]

I was just looking and based on my zip code, it only costs $449 annually with a $0 deductible. You could opt for a higher deductible and pay slightly less, but they kind of skew their deductibles oddly.

Do you own a home or rent? If so, it may be worth taking a look at your homeowner's/renter's insurance policy and seeing how much it would cost it add it onto your existing policy, I heard it can be VERY cost effective for you.

If one of the other competing insurance companies dont pan out I will probably just increase my deductible like you said. Would you mind sharing why you feel JM skews their deductibles oddly?

We rent as of now but will probably buy within the year. I heard its better to have a standalone policy vs. rider. What are your thoughts on this? Thanks!