Diamond Warranty, or service plan?

[Shayne808]

Aloha Community,

I am looking to buy a lab-made diamond (I know this thread is for real diamonds but my question is about insurance) and ring from Yadav Jewelry for 9300$, When I am completing my purchase they offer an "Extended service plan" for 400$ which includes annual cleaning, inspection, repairs, and shipping for ONLY 3 years. I asked them if I could extend my service plan after the 3 years but they said that is a "Maybe." I am not sure if this is worth buying (I live in Hawaii).

Secondly after reading many threads I see a lot of people use Jewelers Mutual for their insurance and I see for 100$ a year they will cover lost and damage Jewelry. Considering that Yadav's plan does not cover "Lost" should I skip their plan and just pay for Jewelers Mutual. I understand I will have to find a local Jewelry to clean my ring. On that note does anyone know what it costs for a jeweler to clean a ring that was not produced by them on average?

Thank you for your time.

 

[Karl_K]

Insurance beats any kind of warranty for what it covers.
Where would you have to ship your ring and are you ok having it out of your hands for potentualy weeks?
A lot of places will do a basic cleaning and inspection for free to a small fee.
A polish used to be free also but a lot of places are charging for it now. $35 would not be unheard of.
You can call around and ask what they charge for a basic steam clean and inspection and what they would charge for a polish.

 

[Shayne808]

Insurance beats any kind of warranty for what it covers.
Where would you have to ship your ring and are you ok having it out of your hands for potentualy weeks?
A lot of places will do a basic cleaning and inspection for free to a small fee.
A polish used to be free also but a lot of places are charging for it now. $35 would not be unheard of.
You can call around and ask what they charge for a basic steam clean and inspection and what they would charge for a polish.

Thank you, that brings a lot of piece of mind. I think I will pass on the 400$ warranty then and get the yearly insurance.

I would have to ship it to SF but I assume it wouldn't be to bad not having it for a period of time.

So lets say I take it to a local place, they charge for inspection and see something needs to be repaired. Will my insurance cover that repair cost?

 

[headlight]

Insurance is not for repair, it is for a lost stone. With that said, 2 points: 1. I don't know if it is worth insuring a MMD; and 2. I don't know if insurance will cover recutting for a damaged stone. You would have to inquire. Yet, again, I don't think it is worth insuring for a MMD. Probably best to start this topic under that forum.

 

[Shayne808]

Insurance is not for repair, it is for a lost stone. With that said, 2 points: 1. I don't know if it is worth insuring a MMD; and 2. I don't know if insurance will cover recutting for a damaged stone. You would have to inquire. Yet, again, I don't think it is worth insuring for a MMD. Probably best to start this topic under that forum.

When I look at Jewelers Mutual it says

Damage
You hit your diamond ring on the edge of a table and it cracks, or you're pulling on a sweater and a prong is bent. Accidents happen. We'll cover that.

So I assume that means something needs repair due to damage?? Or am I reading that wrong.

But my MAIN question really is should I get the 400$ extended service plan that ONLY last 3 years?

Yadav Diamonds and Jewelry | Natural & Lab Diamonds

Yadav Diamonds and Jewelry - https://www.yadavjewelry.com

www.yadavjewelry.com

 

[headlight]

I wouldn't pay for insurance for a bent prong. Yes, if the diamond chips and needs to be recut, or if it cracks and is irreparable, definitely. And, of course, if it is lost, to have replacement. But annual cleaning and inspection should be complimentary from where you purchased it. That is a way for them to get you back into the store because while they are checking your prongs and cleaning it, you will be walking around the store, looking at the cases, and may find something else to buy. It's a no-brainer for a jeweler to offer free inspection and cleanings to their customers. My jeweler recommends inspection every 6 mos... smart: I have a clean and secure diamond, and they have my undivided attention at least twice a year. Brilliant. But to have to have a "warranty" for repairs?... That says to me their workmanship is shoddy. I can't imagine how many repairs one would need in 3 years unless one is very careless and/or the ring is of shoddy workmanship.
But, above all that, I don't know if the price point of MMDs justifies the cost of insurance. Only you can make that decision. And I have never owned a MMD nor insured one, so perhaps the premiums are commensurate with the value of MMDs (which is, at the moment, a moving target).

 

[distracts]

For $400 you could easily get at least decade of cleaning, checks, retipping, polishing, and resizing if you just paid out of pocket when you needed it, so that sounds like kind of a ripoff. The local jewelers I go to will clean and check your jewelry for free. OR you could just clean it at home at least weekly and have clean jewelry all the time without taking it anywhere. Professional cleanings are really only ever necessary, imo, if you don't clean it at home regularly.

I would also not put minor repairs on insurance - insurance imo is for if you have a total loss of the center stone, setting, or entire ring. Yes, it will cover minor damage, but I wouldn't claim it in case my rates went up or after so many claims they dropped me. Easier to just spend the $40 out of pocket to have a prong repaired.

I also don't know if a) it is worth insuring a MMD, and b) insurers WILL insure a MMD.

 

[lydial]

That sounds like a lot lot lot of money for a lab diamond.

 

[foxinsox]

When I look at Jewelers Mutual it says

Damage
You hit your diamond ring on the edge of a table and it cracks, or you're pulling on a sweater and a prong is bent. Accidents happen. We'll cover that.

So I assume that means something needs repair due to damage?? Or am I reading that wrong.

But my MAIN question really is should I get the 400$ extended service plan that ONLY last 3 years?

Yadav Diamonds and Jewelry | Natural & Lab Diamonds

Yadav Diamonds and Jewelry - https://www.yadavjewelry.com

www.yadavjewelry.com

I wouldn’t.
Cleaning, inspection would presumably need to be done by them for it to remain current and on their schedule. Does that mean you’d have to ship it off to them regularly to do that? You can (and should) do your own cleaning daily/weekly and if you buy a loupe, you can do your own inspection too.
Unless it’s a very elaborate setting, what sort of repairs are you likely to have that wouldn’t initially be covered by your standard warranty/consumer protection laws and then wouldn’t be covered by your jewellery insurance?
It feels like a way to get extra money out of you for little return

 

[Karl_K]

Insurance is not for repair, it is for a lost stone. With that said, 2 points: 1. I don't know if it is worth insuring a MMD; and 2. I don't know if insurance will cover recutting for a damaged stone. You would have to inquire. Yet, again, I don't think it is worth insuring for a MMD. Probably best to start this topic under that forum.

Why would it not be? Based on the purchase price it is $9300 like kind replacement right now.
In the future when prices drop get an appraisal and insure for the lower amount.
Insurers love to insure depreciating assets. They insure cars all the time.
I haven't checked but there is not reason they shouldn't insure a mmd.

edit:
I searched and several websites are saying you can insure a mmd with jewelers mutual but it always best to ask directly.

 

[MollyMalone]

* * * But to have to have a "warranty" for repairs?... That says to me their workmanship is shoddy. I can't imagine how many repairs one would need in 3 years unless one is very careless and/or the ring is of shoddy workmanship. * * *

This isn't described or intended as a warranty. As reflected in the OP's thread title and spelled out in the link he posted right above yours, it's a 3-year service plan that covers, e.g., yearly rhodium re-plating of white gold jewelry, re-sizing as often as once a year, replacement of up to .25 total carat weight of side stones, annual inspection, cleaning & polishing of the jewelry piece, "repairs for normal wear and tear." That, however, does not include repairs needed due to "excessive or abusive treatment of the merchandise other than normal wear and tear;" in other words, don't bank on Yadav repairing for free any and all damage that might happen.

And somewhat surprising to me, Yadav will pay for the shipping both way.

That said, I wouldn't spring for this, @Shayne808, for the reasons others have stated -- and because I doubt the "normal use and wear" repairs covered by the service plan amounts to much in reality.

 

[Shayne808]

This isn't described or intended as a warranty. As reflected in the OP's thread title and spelled out in the link he posted right above yours, it's a 3-year service plan that covers, e.g., yearly rhodium re-plating of white gold jewelry, re-sizing as often as once a year, replacement of up to .25 total carat weight of side stones, annual inspection, cleaning & polishing of the jewelry piece, "repairs for normal wear and tear." That, however, does not include repairs needed due to "excessive or abusive treatment of the merchandise other than normal wear and tear;" in other words, don't bank on Yadav repairing for free any and all damage that might happen.

And somewhat surprising to me, Yadav will pay for the shipping both way.

That said, I wouldn't spring for this, @Shayne808, for the reasons others have stated -- and because I doubt the "normal use and wear" repairs covered by the service plan amounts to much in reality.

Thank you very much everyone!! My questions have been answered perfectly. Bottom line, go with personal insurance and use local jewelers.

 

[Dancing Fire]

$400???...Don't be a sucker!

 

[sledge]

There are substantial differences between these products:

Extended service plan = covers routine maintenance such as resizing, repolishing, bent prongs, etc that are easily repairable by most jewelers. In terms of a car, think things like oil changes, a tune-up, etc.

Insurance policy = protects you in the event of loss, fire, theft, damage, etc. In terms of a car, if you are in a wreck, your insurance pays to fix the car or replace the car and if your car was stolen, your insurance provider would replace the vehicle.

The fact that Yadav is located in SF and covers shipping to/from means they probably also provide some sort of insurance during the transit only. So if the stone is lost, etc during transit then it is replaced. Again, not the same thing as a true insurance policy, as it only provides protection during transit. But it is a very nice perk that Yadav offers, and when you factor in those insured shipping costs then perhaps $400 seems more reasonable as it could easily cost $50 each way to ship.

I'm rarely a fan of service plans because I personally do not feel they work out in the favor of the purchaser very often. But I am also tolerant to the risk involved to avoid the plans, and I have sufficient cash flow to pay as I need repairs. Not everyone has the same risk tolerance or cash flow to make the same decision.

In my case, I bought my wife's stone from BGD in Houston, TX. I had a custom setting made in LA, CA for her. It was shipped back across the country to where we live. I have a JM insurance policy to protect against loss, etc. For routine checks, cleanings, etc I utilize a local Diamonds Direct who doesn't charge me a dime. My wife bent some prongs shortly after getting the ring and I sent back to LA for the repairs, which they did for free and shipped back. I presented the ring to her on 6/30/18 and thus far have not been out of pocket for "extended service".

 

[Texas Leaguer]

A Jewelers Mutual insurance policy covers most repairs, as well as loss and theft. Relatively recently they have also started offering service plans. These plans involve a one time fee at purchase. There is overlap between the two obviously, so the idea was clearly to offer some protection to folks who elected to avoid paying an ongoing annual premium.

The first service plan they rolled out is a three year plan. But within just the last few months they began offering a lifetime plan. If shipping is involved, JM covers it both ways.
There are details and rates listed here:

Whiteflash Extended Warranty – Ultimate Care

The Ultimate Care Plan from Whiteflash provides full peace of mind for purchases of diamonds and fine jewelry. Learn about this valuable benefit here.

www.whiteflash.com

*Important to note that JM only offers these at the time of purchase.