Why You Need Insurance for Your Diamond

[Rhino]

This one came in recently ... client gave it a serious bang. Ever hear of an extra, extra, extra large culet?

 

[maxs.memo]

Already have the prelim coverage set up with USAA in advance of even receiving the diamond. All I have to do is call them when I take delivery!

 

[Rhino]

Smart man.

Other PS'rs have reported good coverage for jewelry with the following ...

www.jewelersmutual.com
www.chubb.com
www.allstate.com

I don't know about most recent dealings with these companies so if you guys/gals have any additional input feel free to share it here or perhaps other companies you know of that gives good diamond/jewelry insurance separately.

Kind regards,
Rhino

 

[Rhea]

This varies for people. My engagement ring is insured on the contents or rentesr insurance. It doesn't cost us any extra because of the value of the ring. I don't think the cover for it is that great, fancy insurance on that relatively inexpensive of a ring doesn't make sense.. My sweet little 0.47 non-ideal cut MRB in 14k white gold could easily be replaced out of pocket without having to worry insurance and increase our premium. For us it'd be more about the loss of the gift he gave me. There are lots of us PSers who don't wear our thousands of dollars on our fingers. It's worth weighing up and evaluating your situation every couple of years to determine what makes the most sense for you and your current situation.

 

[maxs.memo]

My renters tack-on would have only included up to 2500 in coverage. Had to initiate a discreet Valuable Personal Property plan which costs <1% of total value annually through USAA.

 

[Laila619]

Dang! That's pretty bad.

 

[Modified Brilliant]

Rhino,
Your photo is amazingly similar to a diamond ring inherited by one of my clients.
She had no idea that it was badly damaged before she aquired it. Semi-annual inspections AND
insurance protection would have been a good idea by the original owner. Now the new owner
is left with a badly damaged diamond that may or may not have recut possibilities. Sad.

 

[Dee*Jay]

Woah. How did that even happen?!?

 

[Rhino]

Rhino,
Your photo is amazingly similar to a diamond ring inherited by one of my clients.
She had no idea that it was badly damaged before she aquired it. Semi-annual inspections AND
insurance protection would have been a good idea by the original owner. Now the new owner
is left with a badly damaged diamond that may or may not have recut possibilities. Sad.

Hey Jeff!

Yea ... semi annual isn't a bad idea. This particular diamond was a VS2 as well.

Deejay, the client had dropped it off with a member of my staff and I didn't get a chance to speak with them personally. I'll see if I can find out how. Judging by the chip on the side it had to be a hard one like getting it jammed in a car door or something to that effect.

 

[kenny]

I disagree.
I don't need insurance for my diamond.
Diamond insurance is not a need it is a want and it's optional.

The VAST majority of insured diamonds will never have a claim.
All those premium checks will go to pay for the insurance industry's employees and infrastructure and a new Porsche for the CEO's daughter.
Yes, a tiny minority of customers will have a claim.

I self insure on many things by just putting money in the bank that would have paid for insurance premiums.
If there is a claim I'll make a withdrawal.
I've done this over my life, almost 60 years.
I have never been a 'claim', so all that money is just sitting there.

Insurance is gambling.
You are gambling there will be a loss.
The insurance company is gambling there won't be, BUT THEY DO THE MATH AND SET THE PREMIUM so they can pay all the claims and make MASSIVE profits on top of that.

I don't gamble.
I'd rather keep my money to fund Octavias and FCDs.

But people vary, so some do 'need' insurance.
One way is never right for everyone.

Great pics Rhino!

 

[Rhino]

Here's a view in the ring and also of the pavilion after we dismounted it. I've seen chips, even as bad as this before but never when about half the pavilion is off! woof

 

[Rhino]

I disagree.
I don't need insurance for my diamond.
Diamond insurance is not a need it is a want and it's optional.

The VAST majority of insured diamonds will never have a claim.
All those premium checks will go to pay for the insurance industry's employees and infrastructure and a new Porsche for the CEO's daughter.
Yes, a tiny minority of customers will have a claim.

I self insure on many things by just putting money in the bank that would have paid for insurance premiums.
If there is a claim I'll make a withdrawal.
I've done this over my life, almost 60 years.
I have never been a 'claim', so all that money is just sitting there.

Insurance is gambling.
You are gambling there will be a loss.
The insurance company is gambling there won't be, BUT THEY DO THE MATH AND SET THE PREMIUM so they can pay all the claims and make MASSIVE profits on top of that.

I don't gamble.
I'd rather keep my money to fund Octavias and FCDs.

But people vary, so some do 'need' insurance.
One way is never right for everyone.

Great pics Rhino!

Now... where is that "Like" button?

 

[yssie]

I am going to have nightmares about this tonight. I just know it.


Kenny - well said!!
And yet... I'm just not able to enjoy pieces that aren't insured. I worry about them, and I can't turn it off - if I didn't have insurance on my daily pieces I'd be so scared of losing them or damaging them that I just wouldn't wear them! So for me insurance is more of a "mind clean" thing...

People vary!

 

[kb1gra]

For me, it's not that financially I COULDN'T replace pieces out of pocket-- it's that I'm not willing to. I would find it too difficult to spend the money on a replacement, so having insurance gives me "permission" to replace something I didn't really need, with something else I don't really need.

 

[Rockdiamond]

Even though we've also seen a limited number of cases where insurance worked out well- I'm in total agreement with Kenny on this one. The Insurance companies have it all worked out- in their favor.

Another big problem for consumers that do buy insurance- inflated appraisals.
We've all seen this- EGL issues monetary values on their reports that are generally wildly optimistic ( way high).
To say nothing of many seller issued appraisals that are way high
Unsuspecting consumers use these values- and insurance companies gladly collect the premiums on unrealistic values.
In the case of a loss, virtually all policies are for replacement as opposed to reimbursement. So the insurance compnay buys a stone at market that was insured for market +30%- or more
Boom, consumer looses again.

 

[kenny]

Is that a break along a cleavage plane?

 

[kenny]

Rhino, what will become of this chipped round?
Do you have to give it to the insurance company?

If not would the customer or you recut it?
What would be the loss from before the damage compared to after the recut? 50%?

 

[Rhino]

Rhino, what will become of this chipped round?
Do you have to give it to the insurance company?

If not would the customer or you recut it?
What would be the loss from before the damage compared to after the recut? 50%?

Insurance company gets it. We're just replacing.

 

[Christina...]

My renters tack-on would have only included up to 2500 in coverage. Had to initiate a discreet Valuable Personal Property plan which costs <1% of total value annually through USAA.

I have this coverage as well, and it has additional perks too, which was the whole reason for changing over from JM.

 

[Christina...]

I disagree.
I don't need insurance for my diamond.
Diamond insurance is not a need it is a want and it's optional.

The VAST majority of insured diamonds will never have a claim.
All those premium checks will go to pay for the insurance industry's employees and infrastructure and a new Porsche for the CEO's daughter.
Yes, a tiny minority of customers will have a claim.

I self insure on many things by just putting money in the bank that would have paid for insurance premiums.
If there is a claim I'll make a withdrawal.
I've done this over my life, almost 60 years.
I have never been a 'claim', so all that money is just sitting there.

Insurance is gambling.
You are gambling there will be a loss.
The insurance company is gambling there won't be, BUT THEY DO THE MATH AND SET THE PREMIUM so they can pay all the claims and make MASSIVE profits on top of that.

I don't gamble.
I'd rather keep my money to fund Octavias and FCDs.

But people vary, so some do 'need' insurance.
One way is never right for everyone.

Great pics Rhino!

I agree with you, but also have the same feelings as Yssie. I'm curious though...where do you stand on medical coverage?

 

[denverappraiser]

Rhino, what will become of this chipped round?
Do you have to give it to the insurance company?

If not would the customer or you recut it?
What would be the loss from before the damage compared to after the recut? 50%?

The insurance company gets it. They then sell it to a salvage buyer. I actually do a pretty good business with insurers consulting about maximizing this transaction.

With most companies the consumer has the option to buy it back by matching the salvage dealers price by the way. All you have to do is ask before it's too late. There is often value left on the table, especially if there's a sentimental attachment to the original item.

 

[Christina...]

Rhino, what will become of this chipped round?
Do you have to give it to the insurance company?

If not would the customer or you recut it?
What would be the loss from before the damage compared to after the recut? 50%?

The insurance company gets it. They then sell it to a salvage buyer. I actually do a pretty good business with insurers consulting about maximizing this transaction.

With most companies the consumer has the option to buy it back by matching the salvage dealers price by the way. All you have to do is ask before it's too late. There is often value left on the table, especially if there's a sentimental attachment to the original item.

I didn't realize this. Thanks DA!

 

[maxs.memo]

Kenny:

Look, no one is forcing you to buy insurance. For most people, the things that create financial instability are unexpected losses. I understand by insuring everything from my car, to the contents of my rental unit, to the diamond engagement ring... I am probably throwing money down a pit. But on the off chance that my fiance-to-be bashes her ring, drops it down a drain, throws it away with her nitrile gloves at work...etc... I think that she will not cry for quite so long and I will not agonize over purchasing a new ring and regarding the "Lost" value. For me, that is worth 100 dollars per year. For MY purposes, I couldn't disagree more.

I am not an idiot nor am I an insurance company's fool. I know they are making money for a service they provide, and I am OK with that. However, I am confident that she will be able to LIVE in her diamond engagement ring, and that peace of mind is worth the price.

 

[justginger]

I disagree.
I don't need insurance for my diamond.
Diamond insurance is not a need it is a want and it's optional.

The VAST majority of insured diamonds will never have a claim.
All those premium checks will go to pay for the insurance industry's employees and infrastructure and a new Porsche for the CEO's daughter.
Yes, a tiny minority of customers will have a claim.

I self insure on many things by just putting money in the bank that would have paid for insurance premiums.
If there is a claim I'll make a withdrawal.
I've done this over my life, almost 60 years.
I have never been a 'claim', so all that money is just sitting there.

Insurance is gambling.
You are gambling there will be a loss.
The insurance company is gambling there won't be, BUT THEY DO THE MATH AND SET THE PREMIUM so they can pay all the claims and make MASSIVE profits on top of that.

I don't gamble.
I'd rather keep my money to fund Octavias and FCDs.

But people vary, so some do 'need' insurance.
One way is never right for everyone.

Great pics Rhino!

I agree with you, but also have the same feelings as Yssie. I'm curious though...where do you stand on medical coverage?

I have the same feelings as Kenny. My FCDs are uninsured, as is the rest of my jewelry - including Poppy. I would NOT be able to replace her if something were to happen. But I know the risks and am planning accordingly. Obviously I would be very unhappy if that ring were to be damaged or stolen...but with insurance premiums here (which are thousands more than $100/year!), I'd be able to purchase Poppy all over again within 15 years of insurance premiums. If I live to 80 and nothing happens to her, that's 3.5x times her purchase price into the pockets of the insurance company!

Medical insurance is completely different to me. I can easily live without my jewelry, and would be somewhat bummed to do so. I can not live without medical insurance. If you lose your jewelry with no insurance, it's a loss of money already spent. If you fall desperately ill without medical insurance, it's incurring an exponential debt of money you have yet to earn.

 

[missy]

I am going to have nightmares about this tonight. I just know it.


Kenny - well said!!
And yet... I'm just not able to enjoy pieces that aren't insured. I worry about them, and I can't turn it off - if I didn't have insurance on my daily pieces I'd be so scared of losing them or damaging them that I just wouldn't wear them! So for me insurance is more of a "mind clean" thing...

People vary!

I agree. However I only insure my ER because that is the only piece I would be devastated about not being able to replace should something happen to it and it is way too expensive to insure the other jewelry I own. Though I wouldn't be happy if any of my other pieces got stolen/damaged/lost I could happily live without them. Well, truthfully I could happily live without my ER too and now that I am typing this out I realize how ridiculous it sounds to say one cannot be happy without a "thing". I have had this conversation with my dh before and he is adamant we insure the ER but that is because like Yssie I would not feel fully able to enjoy wearing it if it wasn't insured. If I could overcome that I wonder if I could talk my dh out of insuring the ER. But with Murphy's Law and all the minute I stop insuring it is the minute something would happen to it LOL. OK Back to insuring the ER but no other jewelry. That's a compromise I can (happily) live with!

I agree with Ginger. Medical insurance is non negotiable. That really is a matter of life and death.

 

[SB621]

sorry repost!

 

[SB621]

My renters tack-on would have only included up to 2500 in coverage. Had to initiate a discreet Valuable Personal Property plan which costs <1% of total value annually through USAA.

I have this coverage as well, and it has additional perks too, which was the whole reason for changing over from JM.

Me 3!!! I love USAA. I have made 2 claims with them over 8 years, very easy and got my check within 2 weeks both times. Since they were well documented pieces USAA didn't even try to replace them. Just cut me a check. While it may not be worth it to some, this accident prone girl will continue to insure everything that would be hard to replace in lost/stolen/damaged. I would much rather be safe then sorry.

 

[Dancing Fire]

Woah. How did that even happen?!?

Wife found out the husband was having an affair so she punched him below the belt..

 

[Dancing Fire]

No you don't...I have been saving all the insurance premiums so that I can buy another diamond from GOG... I would much rather let Rhino take my $$$ then the insurance Co.

 

[Tekate]

eek!