When should I get insurance?

[eks6426]

My fiance and I will be going to pick up my e-ring this Saturday. I was wondering when we should get insurance--before or after we get it? I''m assuming I will need appraisal papers to get it insured. I could probably have the jeweler fax those to an insurance agent? Also, is it best to tack onto my existing homeowners policy or find someplace new. Thanks!

 

[chantheman]

My thoughts on this are as follows......

When I purchased my diamond, I added a rider to my homeowners before the stone even arrived. Due to the fact that the PS vendors provide a plethora of information, I was able to give my insurance company a relatively good idea of what I had purchased. In the absence of an appraisal at that time I could only cover the diamond for the purchase price. While this price was far less than typical B&M prices, I felt comfortable with this set-up as I took my diamond to the appraiser the same day it arrived.

My appraiser appraised the stone based on market replacement conditions at which time I raised the rider and provided the insurance company with a copy of the appraisal. My journey was not complete yet as the custom mount from WF had not arrived. Once the custom mount from WF arrived, my appraiser gave me an update to my earlier appraisal with the addition of mount and wedding band. This too was faxed to the insurance company. Once I faxed all of this information I pulled the rider and had a valuable items policy written for more complete coverage.

While I am not an insurance expert, I do know that the valuable items coverage requires more information submission regarding the items, and also affords me better coverage. It is more expensive than a rider (which will have a coverage limit), but not in my case by more than $9.00 per month. Well worth it to me to feel my fiance' is covered at all times.

Throughout this process it was important to me to not have any moment without coverage once the stone was in my possession. If your ring creation process is a multi-stage one like mine you will have to do more leg work to coordinate it, but I found that adding the temporary rider for a short period of time, followed by the underwriting of a full valuables policy allowed me the needed coverage, in the simplest fashion, at the lowest cost. In actuality, I closed the rider before any premium increases hit my account.

Just some thoughts. Hopefully one of the seasoned PS posting appraisers will see this and provide additional help.

 

[RockDoc]

Date: 2/10/2005 8:48:23 AM
Author:IslandDreams
My fiance and I will be going to pick up my e-ring this Saturday. I was wondering when we should get insurance--before or after we get it? I''m assuming I will need appraisal papers to get it insured. I could probably have the jeweler fax those to an insurance agent? Also, is it best to tack onto my existing homeowners policy or find someplace new. Thanks!

Dear Island Dreams....

The issue here is to carefully understand how the insurance company will settle its claims, which for some companies can vary a lot.

Typically, most insurance companies offer a replacement type settlement. The problem with this is you really don''t know what you''ll get until you experience a loss.

You also need to find out if your insurance carrier will offer an "inflation guard" clause. Most replacement insurance policies won''t ever pay more than the stated value even if the cost to replace and make you whole is more than the amount stated.
This creates a double edged sword. To make sure you have enough coverage, you need to insure it with a pad which may address increasing replacement cost, or have it re-evaluated and the value changed frequently, relevant to the replacement costs at that time.

If you "over insure it" ,this results in paying higher premiums than if the item is currently valued.

In my opinion the way to best address this is to get a policy that covers you in excess of the stated value OR consider a Valued At or Agreed Value policy. In most states Chubb will pay up to 150% of the stated value should proof be submittted that the cost of replacement has increased. In addition, you aren''t limited to getting a diamond from the insurance company''s replacement source, as Chubb will just issue you cash as a settlement, and you can go to who you choose to purchase the replacement. So you know how your claim will be settled before you have a loss.

Disclose the actual purchase price to the insurance company. If you insure it for more than you paid, they need to be made aware of this situation. They probably won''t balk at insuring it for more if told up front and explained why the item should be insured for more. Not disclosing this (depending on the amount in excess of the purchase price) could result in claim settment problems.

Discuss and question the insurance agent, review the language in the policy as to claim settlement, consider any advantages or disadvantages carefully, and make your decision as to which type of insurance to purchase. I can''t emphasize enough that you fully understand the contractual issues, of the policy. Bear in mind that an acutal settlement will follow the exact procedure written in the policy, not what the agent verbally represents if it varies from the written policy. Also check the language of the policy that states their claim settlement requirements, should you disagree with the settlement amount in the event of a claim.

Many insurance companies have different policy "products", and the settlements can vary. You also may find another company besides Chubb that offers Valued At or Agreed Value policies. Coverages can also vary based on the value of the item. If it is an expensive ring ( over $ 25,000) then your appraisal requirements can vary.

As to when to insure it... you should choose the policy you want and then coordinate the agent with the selling jeweler, or your appraiser so that the requirements for getting a binder or effective policy coverage you have in place before receiving your ring.

Talk to various agents to learn the details of their insurance products.



Rockdoc

 

[eks6426]

Rockdoc and Chan,
Thank you for the valuable information. I definitely did not know the nuances of the contractual agreements. We will be picking up a completed ring this Saturday...It is a 1.20 Carat F, VVS2 radiant in the Michael B 3 sided pave setting. I''d like to have some sort of coverage even if temporary for when we pick it up. Then maybe I can shop for the best coverage afterward. Do you think a rider on my exisiting home owners could work for a week or 2?

 

[RockDoc]

Date: 2/10/2005 2:43:56 PM
Author: IslandDreams
Rockdoc and Chan,
Thank you for the valuable information. I definitely did not know the nuances of the contractual agreements. We will be picking up a completed ring this Saturday...It is a 1.20 Carat F, VVS2 radiant in the Michael B 3 sided pave setting. I''d like to have some sort of coverage even if temporary for when we pick it up. Then maybe I can shop for the best coverage afterward. Do you think a rider on my exisiting home owners could work for a week or 2?

I think you''ll find that most insurance companies don''t have sample policies for you to study. Generally they mail the policy or rider to you after you make the purchase, and if you don''t like it, you can cancel the coverage.

There is a Chubb agent near me that I recommend to many PS people. He is licensed in many states, and may or may not be able to cover you. Since you only have two days, I''d recommend calling him to see. His name is Dave Stone, he is with the Plastridge Agency 800-473-6603 - or you could look at Chubb''s website. http://www.chubb.com

Because I am not a licensed insurance agent, I really can''t give you any really pertient specifics. Its best to get this information from licensed folks.

Rockdoc

 

[ame]

He set mine up the day he bought it. He made an estimation based off the first appraisal. Then when the rest of the appraisals came in we adjusted the insured amount.

 

[eks6426]

Thanks! I am going to give Dave Stone at Chubb a call and see if he can do coverage for me.

 

[WinkHPD]

If I were picking up an expensive stone I would call my agent and get him to put a rider on the policy for the purchase price and tell him that the appraisal will be there as soon as I can get it. That way I am protected from the second I leave the door of the jeweler. If you do not have an agent that will put a rider on your policy for you over the phone, then it is time to find a new agent. I have had many of my clients call their agents from my office rather than walk out the door with a twenty k or more stone unprotected.

Wink

 

[NyssaLynne]

In my experience the cost of a Valuable Articles policy will not be that much different from the cost of a homeowner''s rider. I am only paying $18 more per year for my Chubb policy than the rider would have been on my Erie Insurance homeowner''s policy. I think the coverage Chubb offers is much better and worth the $18 extra cost since they pay out in cash and they have inflation adjustments. A homeowner''s rider won''t do either of these. Just my opinion.

I would try to have it insured as soon as you can, just in case. You can never be too safe.

 

[kratty]

Greetings all! This is my first post on PS. Glad to be here!

I am in the process of finding a stone and am working with Lesley at WF on a custom cathedral setting.

One concern I had about insurance was this: given the propensity of P/C insurers to drastically raise premiums or even drop customers after one event necessitating a claim, what will happen if my lovely lady, bless her heart, loses or damages her e-ring? Will it impact my other policies held with the same agent, i.e. will the company now see me as a risk and jack up my renter''s insurance, or even car insurance?

I should note that on a prior visit to a local B&M, the sales person gave me the "you''d better buy from us or else your insurance company is going to screw you if something bad happens" fire and brimstone speech.

I contacted my agent (State Farm) to ask how a claim on a valuable item policy would affect my other policies. Good news! Not only did they tell me that a claim on the valuable item policy would NOT affect any other policies I currently held, but their actuary was also pretty annoyed that a jewelry store would tell people something like that.

Hope that helps.

Cheers,
JK

 

[bizgk]

Hello,

I saw your post about getting stand alone Chubb insurance. Can you tell me who you used (what agent)? All the ones I talk to tell me Chubb won''t allow stand alone policies, but really they just don''t want to do it.

Thanks,
George

 

[denverappraiser]

JK,

“I should note that on a prior visit to a local B&M, the sales person gave me the "you''d better buy from us or else your insurance company is going to screw you if something bad happens" fire and brimstone speech.”

The behavior of the insurance company has little or nothing to do with where you buy the ring unless the policy they are discussing is a manufacturer or store warranty. Insurance companies are in a wickedly competitive business and they dealing with big numbers. If you add up how much you pay State Farm for your various insurance needs you are likely to find that you are a valuable client. If they have some reason to believe that you’re inclined to file false claims they will certainly consider dropping you but they aren’t going to jeopardize a valuable homeowners policy over a typical jewelry claim. If they do, there are plenty more insurance companies where they came from.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[mrssalvo]

Date: 4/3/2005 10:58

1 AM
Author: bizgk
Hello,


I saw your post about getting stand alone Chubb insurance. Can you tell me who you used (what agent)? All the ones I talk to tell me Chubb won''t allow stand alone policies, but really they just don''t want to do it.


Thanks,

George

Hi George,
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