WWYD - insuring diamond ring?

[susief]

I know there are lots of previous threads on this but would still like to get some thoughts, as I'm in a different situation to most on here being in the UK with limited insurance options.

I am getting a diamond anniversary ring that cost the equivalent of 5300 USD. There is only one (decent, reliable) standalone jewellery insurer in the UK, and they quoted 187 USD for a year's insurance. No excess, comprehensive cover. Adding it to our home insurance would cost about the same, plus carry the risk of home insurance going up if I ever had to claim.

The thing is: I am VERY careful with my possessions. I am in my 30s and have never lost a single thing of high value, ever. I have had previous (cheaper and uninsured) diamond rings and never lost or had near misses with them. I will wear it whenever out of the house, it won't be unattended at home. I won't wear it for housework or anything that carries a high risk of damage.

The insurance would therefore really only be for theft (if I was mugged, or our house broken into while I was at home), or I suppose accidental damage e.g. chipping the diamond. We don't live in a high crime area but anything's possible!

What would you do in my situation?

 

[Mayk]

I would insure it unless you are prepared to shell $5,300 out or more if it's lost, stolen or damaged. There's always a first time for a loss.

 

[Queenie60]

I would insure. I live in a very low crime area and was robbed (while at home) and did not know that the thieves were in my home. Also have had a jeweler switch my stone and am very thankful that I was insured. You just don't know what could happen. However, if you can afford to replace a $5300 piece then it may not be worth it to you. Matter of personal situation.

 

[Tacori E-ring]

I am also a very careful person and still have things that were given to me as a child. However, due to theft, I did file a claim. I am so grateful I had the insurance as it would have been a devastating loss without it. If you can afford/don't mind to replace it than maybe go uninsured. After all the point of insurance is peace of mind.

 

[diamondseeker2006]

I pretty much only insure my e-ring and studs because the premium would be too high to insure my other things. If it would cause huge hardship to replace the ring, then insure. If you could replace it without it being a big deal, then I would not insure. In the past, I had things that were worth over a certain amount insured. As I collected a few more expensive things, I realized it was not cost effective to insure everything of value. I try to be wise where I leave things when we are gone on vacation, and I do not keep everything in the same place anytime. So basically, we self-insure items that would not necessarily have to be replaced or that would not be impossible to replace if we had a loss. Your premiums are on the high side for that amount of coverage. My premium is about $500/yr for $50k of coverage.

 

[Snowdrop13]

I live in the UK too. I agree that those quotes seem very high for that amount of cover. Our home insurance covers valuables up to a certain amount, I think around £3500. It is worth shopping around for a better deal.

 

[susief]

Thank you so much MayK, Queenie, Tacori and Diamondseeker. Those are really helpful thoughts.

Queenie and Tacori I'm sorry you lost your pieces, how awful.

Diamondseeker - yes it is on the high side. Unfortunately I've searched and searched and it's really a choice between this cost for standalone insurance or the same increase in premiums if you go through home insurance. We have never made an insurance claim, don't have high-risk jobs or demographics etc, so I doubt it's us. It's a shame but I think the reason is there is very little competition in the UK jewellery insurance sector. Maybe that will change in the next few years? I hope so. UK people just need to start buying nice engagement rings and insuring them

As to whether we could afford to replace it. I always struggle with the concept of "affording" something, as yes, we technically have the money available to buy another outright and would not miss it in day to day life. However it's a substantial amount to us and money that would otherwise go into savings and investments for the future. So in reality, we may not replace it if lost. That would be sad!

I am definitely leaning towards going ahead with the insurance now, for the peace of mind as you said Tacori. There's no point spending on something if you're too worried to enjoy it properly, after all.

Thanks again all!

 

[susief]

Sorry snowdrop cross-posted with you. Thank you for that. Do you mind telling me who your insurance is with? All the policies I looked at cover for items within the home, but if they are regularly taken out of the home they require additional Personal Possessions cover, which added on about £100 to the annual premiums. So slightly cheaper than standalone but not hugely.

Also most companies insist on insuring for the appraised value rather than the paid value, which I know is not ideal, and adds to the cost.

 

[susief]

Hmm have played around with a few more home insurance quotes (why is it so hard to get a simple ballpark quote without having to put in your life history and risk a credit check?!) and it turns out some home insurances will let you use the original receipt rather than the appraised value. That would bring the insurance down quite a lot. This may be the way to go. Thanks for pointing me in the right direction snowdrop!

 

[Ally T]

Hi susief!

My jewellery is all added to our Home Insurance policy. We are insured through American Express as we have our credit cards with them, so we get a good deal. My things have to have a current certificate from a jeweller, which I get done every year for a small fee, but it is extremely worth doing. For example, my pear diamond was bought directly from a dealer 4 years ago & the value has steadily increased. When the latest insurance cert was done in December, it's value had increased by £5,300 from its original purchase price. Literally

I am like you in the sense that certainly with my wedding rings, which are the high value items, I don't ever really take them off apart from particularly disgusting jobs or to drop them in the ultrasonic cleaner. A few years ago however, my daughter accidentally dropped my original engagement ring onto the kitchen floor (slate) and a diamond cracked in half. I had only removed it to clean & she grabbed it from the counter top. It was written off as the repairs were unjustifiable because of the nature of the pressure setting, but my point being that accidents do sadly happen. If I recall, my jewellery adds £28 per year onto our policy, for full current valuation coverage. It's a small price to pay!

 

[susief]

Hi Alex!

Thanks very much for the info, that's really helpful. £28 is amazing value, I wish I could get something like that! Maybe I should look into American Express...

WOW that's a lot for a diamond value to go up - your pear must have been a good purchase! I guess it's different since I just bought the diamond, retail (so surely the purchase price IS currently the retail replacement value?) I baulk at paying inflated premiums when I know I could replace the diamond for much less. In a few years I'd be happier to go with the appraised value as diamond prices will probably change.

I can see my son doing something similar with my ring so good point about accidental damage... I have pretty much decided it needs to be insured one way or another

PS Which ultrasonic cleaner do you have, and do you recommend it? I want one but all the recommendations I can find aren't available in the UK.

 

[Ally T]

You're right, it IS a huge increase in value over the 4 years or so, which is both shocking & pleasing We purchased the diamond loose from a dealer in Birmingham, which was a very exciting trip as you can imagine! It was graded by him as D colour, Si 1 clarity, 1.02 carats. Before we had it set for the 3rd time within 2 years (long story of stress & failed settings) we had it sent away as my jeweller here was convinced it was far better than Si 1, and indeed it did come back at a VS2. This pumped up the value immediately, as it's cut, polish & symmetry are all excellent - no bow tie & a complete fireball. We landed VERY lucky & I absolutely treasure & love it

My ultrasonic was purchased from Amazon UK. I had the same issues about finding one available in the UK, and it's a 'James Professional Limited - Digital Ultrasonic Cleaner'. I'm not sure they are still available - I've had mine for about 5 years now. You're welcome to pop over & use it for your gorgeous new diamond!

 

[susief]

Ah that's so sweet of you Alex! You'll be pleased to hear I won't be mucking up your ultrasonic though as I've just ordered my own from Amazon It's a different brand but had good reviews and wasn't too costly, so we'll see.

I had a quick nosy at your pear on an old thread - it is BEAUTIFUL! Lucky you My new diamond is also 1.02 but an RB and J VS2. Am getting it on Tuesday, can't wait!

 

[Ally T]

Yay!!! Very excited to see pictures next week! I bet you're bursting with anticipation! You can't beat a RB for performance. I am constantly eyeing them up & definitely have one on my wish list. As us Bits are not a nation of upgraders, it'll probably have to be incorporated into a RH ring, so will never be the huge flashy ring of my dreams How will you have it set?

You'll love your ultrasonic. Well worth the money.

Thank you for your kind words regarding my pear. It has been in its forever home for over 2 years now & touch wood, absolutely no issues. I have been SO horribly unlucky with settings, both my pear & treasured eternity ring, so fingers crossed they are both now sturdy enough to one day be passed to my daughters.

 

[kenny]

I wouldn't insure it.

$187 over 50 years is almost $10,000.

Keeping that 10 grand in my pocket to buy 'real' stuff gives me peace of mind.

I consider insurance to be gambling.
You pay them money to bet that there will be a loss.
The insurance company is betting there won't be.
But they set the price so the odds are always with the house.

As always YMMV.
If you like insurance, buy it.

 

[susief]

Thanks Kenny. I agree 100% that insurance is betting against the house, with the odds stacked against the client, and so to date I don't have any insurance that isn't legally necessary (i.e. just house and car), never buy extended warranties, etc. BUT I've never owned anything (bar said house and car) of this value before! So it's a new departure for me and I'm still figuring out what will and won't give me the elusive "peace of mind", to allow me to relax and enjoy the ring while not being resentful at what it's costing me to do so.

I think I will be able to get insurance for $100 a year using the route of purchase price only (which I am comfortable with, even if it means I won't necessarily be able to replace like with like) and home insurance add-on. That's within my comfort zone for "peace of mind", whereas closer to $200 a year was not.

Alex - YES absolutely bursting with anticipation. It's arriving tomorrow but my DH is giving to me "officially" on Tuesday for a special occasion... tomorrow is going to be a loooong day Do you mind sharing which jeweller made your current pear setting? I've been looking for a good local(ish) jeweller for ages.

 

[Dancing Fire]

I can't afford to pay $260 per $10k worth of coverage... besides, where do I draw the line? should I insure my watches too? plus I would need pay to get my ring re-appraise every 2 yrs?

 

[diamondseeker2006]

I always insure with the sales receipts and diamond reports. No reason to insure for more than that. In fact, graded stones here really cost less overall now than if they were bought in 2012 when prices were high. So I do follow diamond prices, and if there was a significant increase in value, such as 20%+, then I might get a new appraisal and increase the coverage. However, jewelers are notorious for writing inflated appraisals, so I would take them a print out of comparable stones from the vendor it came from originally to show current value and get that straight upfront that I wanted a realistic and not inflated appraisal. I am so glad you can reduce your premium by insuring with the true value, which is what you paid! That really solves your problem!

 

[Ally T]

Lots of food for thought in this thread

Susief - my pear setting was made by Christopher Evans Jewellers in Stockton Heath, South of Warrington. They have done lots of bits & bobs for me over the years, my new setting being by far the most extravagant. But.... He listened, we sketched, we chatted, agreed, disagreed.... And it came out completely perfect, strong & exactly as I wanted. He also has a shop in Poynton if that might be closer to you. Roll on tomorrow!

 

[susief]

Thanks Diamondseeker, it's reassuring to know that other people do the same! Good idea on following diamond prices and getting a new valuation if they change a lot (and being firm with the person doing the valuation to get a realistic one!)

Thanks Alex, that's great - I had a look at his website and it looks brilliant. I just want to have someone who can do quality work, and don't mind paying extra for it. My original engagement ring was messed up when it was re-sized and although it was wearable, it always bothered me. A decent craftsman is gold dust!

The ring has arrived and, predictably enough, I have already opened it (DH won't mind, he knows what I'm like and was highly sceptical about the "waiting until tomorrow" plan ) I love it! I've started a thread over at SMTB.

Thanks again everyone for all your help and input.

 

[chrono]

Remember to read all the dots and tees of the insurance. Will it be a cash payout? What is "like" replacement to the insurance company? Will they compensate per the amount stated (generally inflated appraisal) or the minimum the insurance can get it for?