Dis You get Insurance for your diamond??? Waste of money?

[Christina...]

Re: Dis You get Insurance for your diamond??? Waste of money

My ring is worth $15k.

My insurance is $120 per annum with a $100 deductible.

At that rate it would take $125 years for my premium to exceed the cost of my ring I also cannot afford to self-insure (i.e., pay to replace is damaged or lost). So I have insurance.

I do not insure anything of lower value that I can afford to replace.

As my husband says, insurance is for peace of mind. Its worth it to me.

ETA: Read the policy before you sign on the line. Many cheaper policies -- like riders on your home insurance -- do not allow you to choose the replacement diamond from the vendor of your own choice. This is a problem if you have an upgrade policy you may want to protect, or if you have a rare and unusual piece like a vintage ring or cut.

My thoughts exactly! If I can't easily write a check for a replacement then insurance is the way to go!


I agree with DA to the extent that insurance companies make money, but that isn't limited to jewelry coverage. I don't plan on getting sick or getting in a car accident either and I definitely don't self insure in those areas, so to me my jewelry isn't any different....besides I'd have a heart attack if I lost my ring, making both jewelry coverage and medical coverage a good idea!

 

[Dancing Fire]

Re: Dis You get Insurance for your diamond??? Waste of money

Where you live has everything to do with the premiums. I believe Neil said the premiums are often 1-2%. Mine is about 1% and I pay about $300/yr for $30k worth of coverage.

1% sounds fair but i am not paying 2.7%..

Any idea why? Who's your insurer? What's your declared value? Are you in Manhattan or Detroit? Have you shopped it? 2.7% is definitely at the high end of what I've seen and it usually has to do with the Chubb cash policies (which are often priced in that range), what the insurer counts as a high risk address, or extremely high values coupled with what they count as a risky profile or a bad claims history.

Neil
i have no idea why the premium is so high. the quote was from a Farmer's insurance agent.

 

[diamondseeker2006]

Re: Dis You get Insurance for your diamond??? Waste of money

Where you live has everything to do with the premiums. I believe Neil said the premiums are often 1-2%. Mine is about 1% and I pay about $300/yr for $30k worth of coverage.

1% sounds fair but i am not paying 2.7%..

Any idea why? Who's your insurer? What's your declared value? Are you in Manhattan or Detroit? Have you shopped it? 2.7% is definitely at the high end of what I've seen and it usually has to do with the Chubb cash policies (which are often priced in that range), what the insurer counts as a high risk address, or extremely high values coupled with what they count as a risky profile or a bad claims history.

Neil
i have no idea why the premium is so high. the quote was from a Farmer's insurance agent.

I think that company has really high rates overall. You might want to do some price shopping on all your insurance! I cannot believe you don't have the big rock insured, DF!!! That really scares me!!!

 

[denverappraiser]

Re: Dis You get Insurance for your diamond??? Waste of money

Jewelers Mutual has an online pricing system that may be worth a look. www.jewelersmutual.com

 

[sloths]

Re: Dis You get Insurance for your diamond??? Waste of money

Insurance is regulated by the state, not federally, so you will see large variances in prices just for that reason alone. Insurance in the most layman's terms is the transfer of risk for a premium. If you don't feel comfortable with the risk, buy the insurance.. at least for a couple of years.

 

[Dancing Fire]

Re: Dis You get Insurance for your diamond??? Waste of money

[quote="diamondseeker2006|

I think that company has really high rates overall. You might want to do some price shopping on all your insurance! I cannot believe you don't have the big rock insured, DF!!! That really scares me!!![/quote]


i am not insure with Farmer's. my home and autos are with AAA.

if i were to insure my wife's jewelry where do i stop? should i insure my watches too? i just wear one watch at a time and leave thee others in the safety deposit box.

 

[ForteKitty]

Re: Dis You get Insurance for your diamond??? Waste of money

Where you live has everything to do with the premiums. I believe Neil said the premiums are often 1-2%. Mine is about 1% and I pay about $300/yr for $30k worth of coverage.

1% sounds fair but i am not paying 2.7%..

Any idea why? Who's your insurer? What's your declared value? Are you in Manhattan or Detroit? Have you shopped it? 2.7% is definitely at the high end of what I've seen and it usually has to do with the Chubb cash policies (which are often priced in that range), what the insurer counts as a high risk address, or extremely high values coupled with what they count as a risky profile or a bad claims history.

California is just high. I got a quote from JM for my oec (retail value at $31k, appraised at $36k) and my annual premium was around $1100 (based on appraisal). I live in the suburbs just south of Pasadena, CA. Never claimed anything, or had any incidents with the house. We have a security system, not sure if that makes a difference since the rate is still pretty ridiculous.

ETA: I purchased my oec for $14k from ebay, so one year of insurance is almost 8% of my cost.

 

[Dancing Fire]

Re: Dis You get Insurance for your diamond??? Waste of money

Jewelers Mutual has an online pricing system that may be worth a look. www.jewelersmutual.com

thanks Neil...it'll cost me $923 with a $1000 deductible to insure $50K worth.

 

[jeweln]

Re: Dis You get Insurance for your diamond??? Waste of money

I too do not believe in insurance .if an item is lost ,then its meant to be .I will try to replace it the best I can with what money I have .if I can't ,that is ok too.

 

[CharmyPoo]

Re: Dis You get Insurance for your diamond??? Waste of money

My daily set is insured and I am not sure if it is worth it. I just lost my wedding band (very very sad) and I don't know if I will go through insurance for it.

My thinking ... I am going to insure the set I wear daily in case something happens. Feel strange walking around with such an expensive item on my finger without insurance. Then again, my insurance expired and I didn't know it doesn't auto renew ... so I had no insurance for a year while thinking I did. LOL.

 

[Phoenix]

Re: Dis You get Insurance for your diamond??? Waste of money

I insure most of my jewellery as I wear most of them. Whatever I don't insure, I keep in the bank safety deposit box. At just slightly over 1%, I consider this worthwhile; in fact it's essential.

 

[Malbec54]

Re: Dis You get Insurance for your diamond??? Waste of money

yes yes yes! I think insurance is worth it! The only items I wouldn't insure are ones that I could replace easily in the event of loss or damage. Insurance is relatively inexpensive for the piece of mind that it offers. I recently switched from jewelers mutual to USAA and enjoyed a large savings and am getting better coverage. You can get a free online quote from JM by going to their website and answering a few questions. Most policies cover loss, theft, and damage, but it's important that you read what exactly is included in your policy.

ETA: Some people choose to add a rider on their homeowners policies instead of a policy specific to jewelry. I've read differing information on this though, I've read both that a rider will cover loss and/or damage that is the fault of the owner, and that it will not. Of course it's probably dependent on your specific policy, but I would want to be clear that it offered some type of 'I'm an idiot' coverage.

Christina: So, USAA provided more of a savings compared to Jewelers Mutual, huh? I was talking to my fiance about this the other night. We currently have car insurance through USAA and considered just adding my ring onto the existing policy...but, I've heard great things about Jewelers Mutual. Was the savings dependent upon the price you were insuring? Meaning, did USAA insure up to a certain amount --- is there a cap, or is the sky the limit?
TIA...

 

[slksapphire]

Re: Dis You get Insurance for your diamond??? Waste of money

bizmord,

i do not insure my jewelry. why?

i believe insurance is for catastrophic loss, for example homeowners, auto, life and medical. if something goes really wrong in one of these areas, it could cost millions -- you just don't know (for example, medical bills can easily add up and you could get sued if you are in an auto accident).

as for jewelry, it is worth a finite amount (you can debate how much, but essentially replacement value at the time it needs to be replaced). i don't own a lot of jewelry, so we could replace it relatively easily ourselves. also, i am not the type of person who typically loses things, am generally gentle on my jewelry, get my prongs checked regularly, etc.

 

[rubybeth]

Re: Dis You get Insurance for your diamond??? Waste of money

I don't remember exactly how much we have covered, but I just paid our $89/year premium for all the items were have, which I'd estimate is about $8-9k worth of stuff, so about 1%. We are in the midwest, as well as a a somewhat urban area but not a large one. Bigger cities will involve a bigger premium. Right now, we probably could just replace any of the jewelry that we have insured, but when we first got married, that would have been painful or near impossible.

I think that, even if you *could* replace it immediately out of pocket, you'd also want to think about rising diamond/metal prices and how likely you'd be to plunk down $6-8k in one or two years, and how upset you'd be at yourself for NOT paying $60/year for a few years in order to get a $6k item replaced. Even in 10 years, you'd only have paid $600 in insurance. With Jeweler's Mutual, you can elect to have a deductible, so if you're okay with paying $500 or whatever, and having them cover the rest, the premium will be lower. For pretty much anyone, I'd recommend having at least your engagement ring and diamond earrings insured, because most people wear their ring every day and earrings are pretty easy to lose.

Edited to add: even if you baby your jewelry and keep it at home much of the time, I still think insurance is wise. My parents experienced a home robbery just a few years after they got married and built their house. A bunch of random things were taken (in 1975), camera equipment, electronics, and some of my mom's jewelry. Due to having engraved the electronics and camera stuff with an identifying number, they were able to get most of those back after they were pawned. But, they had other priorities at that time, so the jewelry pieces were never replaced. She's gotten other jewelry over the years, but never did replace her engagement ring.

 

[diamondseeker2006]

Re: Dis You get Insurance for your diamond??? Waste of money

bizmord,

i do not insure my jewelry. why?

i believe insurance is for catastrophic loss, for example homeowners, auto, life and medical. if something goes really wrong in one of these areas, it could cost millions -- you just don't know (for example, medical bills can easily add up and you could get sued if you are in an auto accident).

as for jewelry, it is worth a finite amount (you can debate how much, but essentially replacement value at the time it needs to be replaced). i don't own a lot of jewelry, so we could replace it relatively easily ourselves. also, i am not the type of person who typically loses things, am generally gentle on my jewelry, get my prongs checked regularly, etc.

Goodness. Will you please start a thread on your sapphire ring in the Show Me the Bling part of the forum? It is gorgeous!

 

[denverappraiser]

Re: Dis You get Insurance for your diamond??? Waste of money

[quote="diamondseeker2006|

if i were to insure my wife's jewelry where do i stop? should i insure my watches too? i just wear one watch at a time and leave thee others in the safety deposit box.

I agree that insuring things based on the usage profile is a good strategy. We all know what the usage on the reindeer pin with ruby nose is going to be and the premium may not make sense if it only comes out of the safe for one party per year. The same applies to that platinum tiara that you inhereted from your grandmother. That's actually where you, the client, have an advantage over the insurance underwriter. ALL they know is what you put on the form and they have to assess the risks from there. You know your own (or your wife's) behavior and can apply a modifier.

Watches are an interesting issue because they are so easy to damage. Some insurance covers it and some doesn't and certain designs are a LOT more prone to troubles than others. If you were to be wearing the same watch daily, I would actually say your risks on that particular item may be higher than an engagement ring, especially if it's a design that's inclined to be fragile. The formula for the premiums, on the other hand, will be identical.

 

[justginger]

Re: Dis You get Insurance for your diamond??? Waste of money

You can add me on to the 'not insured' category. Insurance companies here flat refuse to insure unset diamonds, so that's my entire (albeit small) FCD collection ineligible for insurance. My engagement ring is currently insured, but I plan to drop it. I think I pay about $400/year for $15k coverage on it. I haven't insured Poppy at all. There are no stand-alone jewelry insurance policies I can take out in Oz, and my home insurer requires my jewelry to be less than 30% of my entire contents insurance. So that means not only do I get to pay near 3% premiums to cover Poppy, I also have to jack my contents insurance way over what it needs to be in order to have her insured amount as less than 30% of my entire coverage, resulting in getting to pay even higher premiums for my normal contents. Double eyeroll.

 

[kenny]

Re: Dis You get Insurance for your diamond??? Waste of money

I'd like to blow up a myth.

I don't insure and it's not because I can afford to replace.
If stolen I'd almost certainly just do without and be happy for the time I enjoyed the sparkles.
My life has been a roller coaster in which many good things have come and gone.
I try to just enjoy the ride and not be so controlling and fearful.

About the question of where do you stop insuring stuff ... I could understand if many gals wanted only her engagement diamond insured because of the high sentimental value.

 

[BrianT]

Re: Dis You get Insurance for your diamond??? Waste of money

Jewelers Mutual has an online pricing system that may be worth a look. www.jewelersmutual.com

thanks Neil...it'll cost me $923 with a $1000 deductible to insure $50K worth.

I agree with you on this. I just insured my wife e-ring last week with jewelry mutual and it cost me $188 with no deductible for $12500. It will cost me the same just like you said if i have to insure $50k worth from where i live.

 

[galevin]

Re: Dis You get Insurance for your diamond??? Waste of money

Here is what my State Farm Agent just email me:

To insure the ring properly, we would use a Personal Articles Policy. You would need to get with a trusted appraiser to have them let us know:
a. What the ring is;
b. What it’s value is.

The purpose of the policy is to insure the ring for exactly what you are asking about. Other than intentional acts, there really are no exclusions on the contract. If the center stone falls out while you guys are skiing in Aspen, it’s covered. When she becomes your legally significant other or moves in, we’ll want to get her information and add her to your household. At that time, it will probably make sense to combine households. Regarding the name on the policy, if she’s wearing it, we’ll probably put both of your names on the policy.

Premium-wise, if you were insuring the ring for $25,000 with no deductible the premium is only $265 for the year…with a $1000 deductible, $188. There are options, but that’s the idea. If you insured the ring for $50,000. The premiums are linear so $50,000 is an additional $265, etc.

Again, Congratulations! Let me know if I can answer any questions.

 

[Dancing Fire]

Re: Dis You get Insurance for your diamond??? Waste of money

Premium-wise, if you were insuring the ring for $25,000 with no deductible the premium is only $265 for the year…with a $1000 deductible, $188. There are options, but that’s the idea. If you insured the ring for $50,000. The premiums are linear so $50,000 is an additional $265, etc.

these premiums sounds reasonable.

 

[OCmom3xboys]

Re: Dis You get Insurance for your diamond??? Waste of money

My husband and I agreed that we only insure jewelry over $5k...so, with that said, only my princess halo is insured. With my eternity ring, studs and huggies, I wear almost 10 ctw of diamonds on a daily basis but only 1 item is insured. Occassionaly worn pieces like RHRs are stored in the safe. My homeowners offers a blanket policy, per item, $5k each, I probably should look into that.

 

[WillyDiamond]

Re: Dis You get Insurance for your diamond??? Waste of money

Of course the insurance companies make money on the deal, if they didn't make money they wouldn't offer it. You don't work for nothing either. The premium depends on what area of the county you live in. Look at a personal articles policy rider to a homeowners policy. JM is more expensive, its a standalone policy. I would insure it.

 

[MsP]

Re: Dis You get Insurance for your diamond??? Waste of money

yes yes yes! I think insurance is worth it! The only items I wouldn't insure are ones that I could replace easily in the event of loss or damage. Insurance is relatively inexpensive for the piece of mind that it offers. I recently switched from jewelers mutual to USAA and enjoyed a large savings and am getting better coverage. You can get a free online quote from JM by going to their website and answering a few questions. Most policies cover loss, theft, and damage, but it's important that you read what exactly is included in your policy.

ETA: Some people choose to add a rider on their homeowners policies instead of a policy specific to jewelry. I've read differing information on this though, I've read both that a rider will cover loss and/or damage that is the fault of the owner, and that it will not. Of course it's probably dependent on your specific policy, but I would want to be clear that it offered some type of 'I'm an idiot' coverage.

Christina: So, USAA provided more of a savings compared to Jewelers Mutual, huh? I was talking to my fiance about this the other night. We currently have car insurance through USAA and considered just adding my ring onto the existing policy...but, I've heard great things about Jewelers Mutual. Was the savings dependent upon the price you were insuring? Meaning, did USAA insure up to a certain amount --- is there a cap, or is the sky the limit?
TIA...

I'm not Christina, but I have my things insured through USAA. From what I gather, there is no max. Also, no deductible. I didn't compare Jewelers Mutual but Chubb...and USAA was a significant savings. You can do a quick inquiry on their website once you log in. It'll give you an instant quote.

 

[isaku5]

Re: Dis You get Insurance for your diamond??? Waste of money

The only jewellery I insure are my e-ring and w-ring. I've toyed with the idea of dropping the insurance a few times, but never followed through. I have a $500. deductible and that should be replaced with $1000. I wonder what the difference would be?? I will find out.

 

[LittleRiver]

Re: Dis You get Insurance for your diamond??? Waste of money

Insurance is expensive where I live (NYC). I think the premium is around $250 for $15k of coverage. That said, we insure my ring because we wouldn't spend the money again today if something happened to it. I love my ring, but our priorities have shifted. I just can't imagine paying out of pocket to replace a diamond when we are saving for a house, future kiddos, etc.

 

[alisonia333]

Re: Dis You get Insurance for your diamond??? Waste of money

I have insurance through State Farm. It costs $90-something a year and my e-ring is appraised at $11k and change. My fiance couldn't afford to replace it without saving first or using credit. Honestly, even if it wouldn't be too difficult financially to replace, I don't really get the argument about insurance being too costly in this case...I mean, you can buy my policy for a year for the cost of a meal out!

 

[MsP]

Re: Dis You get Insurance for your diamond??? Waste of money

I have insurance through State Farm. It costs $90-something a year and my e-ring is appraised at $11k and change. My fiance couldn't afford to replace it without saving first or using credit. Honestly, even if it wouldn't be too difficult financially to replace, I don't really get the argument about insurance being too costly in this case...I mean, you can buy my policy for a year for the cost of a meal out!

I agree with you when the cost is pretty small... like you said, yours equates to about one meal out. If I insured all of my items the cost would be roughly $1,100 a year. That's not small change! Most of the items were gifts or inherited pieces so it's not as if I am wealthy enough to just go out and repurchase (or purchase myself from the start).

I do not insure everything. I only insure things that I feel I would replace if lost/stolen/etc.

 

[flamingoezz]

Re: Dis You get Insurance for your diamond??? Waste of money

I have a maybe somewhat related question..

if you choose not to get insurance, is it still necessary to get an appraisal? from what I read on here they are normally inflated anyway.

only reason i could think of to do it is to ensure what you get is actually what you bought. i bought from a reputable vendor for PS.

 

[ChrisES]

Re: Dis You get Insurance for your diamond??? Waste of money

I haven't read the entire thread, but I'll share an anecdote.

Insurance varies by state and company but also by package.

For example, when my fiancee and I got engaged I looked into taking out a jewelry policy attached to our renters insurance....long story short is it would have been like 4% or something huge like that.

I was trying to figure out why and then I realized....renters insurance is heavily regulated and dirt cheap. The company probably makes very little money on it. So they were trying to gouge me on the add-on jewelry policy.

I went with Jewelers Mutual instead.