Insure ring for appraisal or cost value?

[ysj99]

Hi everyone,

I am looking to insure my e-ring. I called Touchstone this morning and they said that it''s my choice as to whether I insure my ring for it''s appraisal value or it''s actual cost. Touchstone sends you back to your original jeweler for the replacement. I am leaning towards insuring the ring at it''s actual cost because the premiums would be lower.

Is it safer to insure it for the appraisal value though? If I insured for the appraisal value and something happened, would I be required to replace the ring with the same type/size/etc. or could I use the appraisal value for a bigger ring? Hope this makes sense and thanks in advance!

 

[neatfreak]

If you do a search there are hundreds of recent threads debating the pros and cons of each.

 

[Regular Guy]

Neatfreak, the likelihood is high this has been asked and answered...but I do read a lot of these threads...and can't actually remember how this basic question has been answered.

On top of this...I have a reasonable extension.

I'd agree with ysj, I think, and would go with insuring for what was paid. I wasn't given that choice by my insurance agent..I had to go with the appraised value.

If the diamond gets lost, or the equivalent...presuming it's well documented (a different question...but you want to have that be the case)...regardless of cost or appraisal...you should get a like kind replacement. Why not pay less for this?

Now...for our helpful appraisers here who enjoy providing several choices to buyers (internet pricing, retail, high retail...or however you call these)...a) yes...I realize you are trying to be descriptive...but b) what must you expect the c) insurer and d) your customer will do with this info, when it comes time to set up the insurance coverage...in terms of setting the amount the ring will be insured for?

God rest his soul...there were many issues I had with RocDoc, but he always seemed to want to be strategic with respect to how to relate to insurers. Many appraisers who write here do intend to report professionally...but something to my mind gets lost in the helping to set up the articulation with the insurer. This, of course, may in and of itself have advantages and disadvantages. But...right now...I'm mindful of the disadvantages.

Sorry to exacerbate the existing good question.

Regards,

 

[cestmoi]

It would have to depend on your insurer. For example, I recently called up my auto insurance agent, Allstate and inquired on how I would go about insuring my new E-ring that I will be purchasing and they said that I can insure it under my ''home'' insurance.

It happens that I am currently living simply, renting and don''t have much in terms of valuables in the home as I am anticipating that I would probably be relocating from small town TN by my company and therefore I have minimal furniture (lived in TN for about 2yrs now), she says that I can cover it under rental 15k coverage insurance and I can list the item by either getting an appraisal or by the purchase price. By listing the diamond, I can lose my diamond and still get it replaced by the insurance.

I figure that if I go with the appraised price (which in general is higher I''m guessing), I would be paying the premium at a higher rate and thus why pay at higher rate, especially since I don''t plan to lose it or get it stolen? Chances are that it won''t (otherwise insurance companies would be out of biz right?!) but a peace of mind is always a good thing. And if I do have it lost/stolen/damaged, I get back my money that I paid for.

So, that''s how I have rationalized it.

 

[Regular Guy]

Date: 10/15/2008 10:43:17 PM
Author: cestmoi

I figure that if I go with the appraised price (which in general is higher I''m guessing), I would be paying the premium at a higher rate and thus why pay at higher rate, especially since I don''t plan to lose it or get it stolen?

Cestmoi...sounds like you tend to agree with me and this inquirer, ysj, about going with the lower retail number...

You say it depends on the insurer. But, in this case...the insurer is giving the shopper a choice.

Maybe this should be a criteria when shopping for an insurer? If so...maybe there can be good advice fall out as to which insurers do reliably allow for this (option of going with sticker price or appraisal amount). Unfortunately...there''s frequently too much variability about what insureres do and don''t do.

 

[Richard Sherwood]

Here''s the way I look at it.

Let''s say you have a diamond you purchased over the internet for $10,000, and it appraised for 30% more, $13,000, on an average retail replacement value.

Most insurance companies recommend updating your appraisal every 3 years, and many make it mandatory every 5 years.

So let''s say you went with the cost figure, and then lost your diamond 5 years later before getting your policy updated.

You would only be covered for $10,000, yet that diamond will no longer be available for $10,000. In all likelihood the cost would have appreciated at least five percent a year (it''s been more lately), so that diamond would then cost about $12,750.

And you would be out almost three thousand dollars...

This, to save about $45-$60 premium per year.

Me, I would go with the appraised figure.

 

[Regular Guy]

I just thought about calling my insurance agent, but then thought the better of it. I'm curious but not that curious...and haven't re-done our appraisal since the purchase about 5 years ago. They probably would prefer I do (sorry, guys).

But:

a) they're accepting our money each year.
b) the thing I would check...is I'm pretty sure that, along with my homeowner premiums being increased annually...I'm pretty sure my rider's being increased annually, too.

So...I figure that if my wife's engagement ring gets lost (or...if it does again like the first time after 14 years, and the diamond falls out), without apology, I'm entitled to a like kind replacement.

And...my Nationwide agent did request an appraisal that would be associated with the ring...not the receipt.

 

[cdndman]

Alright you just spent a substantial amount of money on your fiances e-ring... why wouldn't you pay the extra amount to make sure it can be replaced EXACTLY as it is? the price of gold and the prince of diamonds fluctuate so why not be covered for the higher value?

As far as I'm concerned I would rather spend a little extra for the peice of mind that my fiances custom e-ring will be replaced to the EXACT specifications and by the exact maker.

Also you would be required to replace it with EXACTLY the same ring/diamond... unless your insurance company says otherwise. It is considered insurance fraud to have a betterment out of a insurance claim. Make sure you talk to your specific insurer about this.

 

[Modified Brilliant]

Date: 10/16/2008 4:08:16 PM
Author: Richard Sherwood
Here''s the way I look at it.

Let''s say you have a diamond you purchased over the internet for $10,000, and it appraised for 30% more, $13,000, on an average retail replacement value.

Most insurance companies recommend updating your appraisal every 3 years, and many make it mandatory every 5 years.

So let''s say you went with the cost figure, and then lost your diamond 5 years later before getting your policy updated.

You would only be covered for $10,000, yet that diamond will no longer be available for $10,000. In all likelihood the cost would have appreciated at least five percent a year (it''s been more lately), so that diamond would then cost about $12,750.

And you would be out almost three thousand dollars...

This, to save about $45-$60 premium per year.

Me, I would go with the appraised figure.

Rich,
You are being way too logical and making way too much sense.

Your reply echos my sentiments perfectly.

Thanks for spelling it all out for our PS audience!

Jeff
www.metrojewelryappraisers.com

 

[Modified Brilliant]

Oh, and this is to celebrate my 1000th post

Jeff
www.metrojewelryappraisers.com

 

[MMT]

I insured for appraisal value. It''s only $40 more a year and will give me piece of mind if prices increase that my ring can be replaced. It will also save me from having to appraise it again for a little while. The premium difference is usually very small.