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Jewelry Insurance Too Expensive?

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thaifood122

Rough_Rock
Joined
Dec 17, 2019
Messages
34
Hello lovely PSers. I have a question about jewelry insurance and whether you all would get it in my case. My heirloom diamond was reset by Victor Canera. The center stone has been appraised to be around 3.35-3.7 cts, I color, VS2, slight blue florescence. The ring was stated on the appraisal to be worth around $55,000. When I checked on Jeweler's Mutual how much insuring it would be, we got quoted $1200 per year. This is much more than we were expecting to spend. My fiancé thinks we should skip it, especially since we could easily buy a 2ct diamond to replace it if anything were to happen (although he wouldn't be thrilled to do so haha). He'd prefer we save and invest that money and thinks insurance premiums that high should only be considered for something essential such as a home or car and not something inessential like jewelry. He especially thinks we should be looking to conserve money wherever possible and invest as much as possible over the next 2-3 years so that we can break the 1 million in liquid assets mark before kids.

Thoughts and feedback on this specific issue? What would you do in our case?
 
I’ve never insured at the appraisal value. I’ve always insured at what I think it’ll cost to replace (inclusive of tax since we pay 10% here). My 1.3 ct K colored diamond (when it was in it’s old setting) appraised at $15k and my opinion was that it’d never cost that much to replace based on prices of similar diamonds, so I didn’t insure it at that amount.

Now, I’ve never had losses either. So I can’t say how it’d actually work out if I were to ever lose it.
 
That seems really high, I think. Did you ask about deductibles, etc? I have JM insurance and my rates are very reasonable.
I get insurance for the price I paid for the items, not for appraisal value. I like to be covered but I don't want to over insure.
 
Good jewelry insurance is not cheap. Based on $55K valuation, $1200 seems in line. If you want a different valuation, you can. Whether to get insured is very personal and depends on your personal finances and view point on jewelry.
 
Thanks for the feedback! I was under the impression that we needed to go with the appraisal value since we didn't buy the diamond, only the setting for around $4000 US. But is it true that I can do a lower value, say 40k or even less for the same ring without having to reappraise it for that amount? That could be something worth thinking about. I had originally thought insurance would be around 1% of the value so the quote online was a real shock. The $1200 is with no deductible, around $1000 per year with a $500 dollar deductible but fiance thinks that's way too high as well! It's around what we pay to insure my car!
 
Thank you, @LLJsmom ! I am seeing that it is a very personal decision. Could you tell me what decision you would make and/or the factors you'd consider in my case? I guess I'm just wondering if there are points we haven't considered or weighed when thinking about this and what others would choose to do.
 
Get an appraisal from an independent appraiser - not one from a jeweler. Yes, it should be in line to what you paid. The insurer will want to cover the cost of replacing like new and same. My appraiser listed the cost of the diamond that was purchased, a copy of its certificate (because it's a branded cut), etc., so that if loss or stolen, I will be covered for its cost. Since your stone was gifted, you will want an appraiser, probably GIA/AGS certified to provide you a reasonable estimate on the stone. That will be easier if you have the paperwork for the diamond.

The appraiser should list your custom setting from VC as well as the cost you paid.

And no, you will need an appraisal so they can verify the amount being insured. You won't be able to just stick some number in it.
 
If Victor just made a new ring, didn't he weigh the stone at the time? 3.35 - 3.70 is quite a range. Who graded and valued this?

Try shopping the insurer. 1%ish really is pretty typical, but it varies quite a bit with non-gemological things like your address and the company's experience with your state. Most of the homeowners type companies offer this sort of insurance and there are a couple of stand-alone jewelry insurance companies to consider. Quotes are free.
 
Thank you! The appraiser listing 55k was a GIA certified independent appraiser in DC with high reviews. We have not gotten the stone itself appraised/certified by GIA or AGS, but we do have all the paperwork for the setting. I may look for another appraiser to see if they'd be willing to list a lower amount.
 
thaifood122 said:
Thank you, @LLJsmom ! I am seeing that it is a very personal decision. Could you tell me what decision you would make and/or the factors you'd consider in my case? I guess I'm just wondering if there are points we haven't considered or weighed when thinking about this and what others would choose to do.
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For me, it's more for peace of mind. Sure, if I really wanted another stone, I could technically go buy another one but it would not be an easy financial or mental process. I would prioritize it behind other expenditures. It may take a long time. You mentioned that you could just go buy it, so that would not be a factor for you. Finances do make a difference for me. However I lose it, it would just make me very sad. Being insured takes some of the sting away.
 
We are also planning to check with USAA but I feel hesitant to use anyone other than Jewelers Mutual since I wouldn't get to pick the stone or see the jewelers work for a replacement, they would just send me one from their own in-house jeweler which would be close as they can get to the original. I've heard really mixed reviews.
 
Having been someone who's gone through the claims process, it will be up to you on how much of a deductible you're willing to pay should something happen. I'm sure I pay more because of my prior losses :confused2: and low deducible.

FYI - if there is a jeweler you really like to use, then check to see if they work with USAA and JM and what their process is towards replacing your ring. I believe I got the option to choose the jeweler, and went with GOG. GOG submits an estimate, and then JM released the funds. It's an annoying ordeal, but went about as smoothly as I could expect.
 
It‘s really about what you prioritize! Feeling 100% safe about your e-ring or leveraging your investment power. Both are worthy goals!
 
LLJsmom said:
I would prioritize it behind other expenditures. It may take a long time.
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Thank you for this! This definitely gives me a new talking point with fiancé as we decide what to do... Because yes we *could* easily replace it with a smaller but still magnificent 2ct, but would we *want* to, would we both see it as a priority, or would I just be sad and ringless and feeling guilty and sad for a really long time if anything were to happen... I think that's my fear that I've been unable to really verbalize as he argues for the logic of self insurance, that I would feel so much worse asking for a new ring if it meant we had to carve out 10s of thousands of dollars to do it all at once...

That was a really really helpful way to phrase it and helped me pinpoint my exact hesitations of skipping the insurance, thank you so much.I've been having a really hard time figuring out why I have a general sense of unease despite the argument to save the money making so much sense.
 
thaifood122 said:
Thank you for this! This definitely gives me a new talking point with fiancé as we decide what to do... Because yes we *could* easily replace it with a smaller but still magnificent 2ct, but would we *want* to, would we both see it as a priority, or would I just be sad and ringless and feeling guilty and sad for a really long time if anything were to happen... I think that's my fear that I've been unable to really verbalize as he argues for the logic of self insurance, that I would feel so much worse asking for a new ring if it meant we had to carve out 10s of thousands of dollars to do it all at once...

That was a really really helpful way to phrase it and helped me pinpoint my exact hesitations of skipping the insurance, thank you so much.I've been having a really hard time figuring out why I have a general sense of unease despite the argument to save the money making so much sense.
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You are welcome. I just know myself. Guilt would play a huge role in delaying indefinitely my purchase of a replacement. I understand insurance is a cost. I may never lose it. But for me, it's a cost that comes with wearing an expensive piece of jewelry because of my mental issues.
 
thaifood122 said:
Thank you! The appraiser listing 55k was a GIA certified independent appraiser in DC with high reviews. We have not gotten the stone itself appraised/certified by GIA or AGS, but we do have all the paperwork for the setting. I may look for another appraiser to see if they'd be willing to list a lower amount.
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GIA doesn’t ‘certify’ anyone or anything but I know what you mean. :)

$55k for a 3.70/VS2/I is retail but it isn’t crazy. Dealers here who tend to be pretty aggressively priced will run in the high 40’s for just the stone, plus tax.

A 3.35/SI1/J is on the order of half of that. That’s why the details are so important.

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Didn't you have it insured before sending it off to Victor?
 
Nope... it appears not. Despite my constant telling him he had to insure it before mailing it to LA and that there were risks to the stone during a reset... my fiancé apparently got an appraisal and then never insured it :oops2:

We still need to get an independent appraisal of the ring in the new setting before insuring it but are dragging out feet since we are both totally work from home since March and it hasn't really left the house but also we aren't sure it's necessary if we choose to "self-insure".

We've discussed multiple options such as me not wearing it to work, putting it in a bank vault when we travel, getting a moissanite or larger eternity for daily wear, and getting a home safe that we bolt down etc etc. Still not sure what we'll do but I wanted to be able to gauge others reactions and formulate my own thoughts and feelings before we made any decisions. Although it seems the time is coming to make some decisions around this since we decided to risk booking an international trip to the Maldives in December (I know... I know... it seemed safer than traveling domestically due to needing a negative covid test from the past 72 hours to even get on the flight) and the ring definitely is not coming with but I don't just want to keep it in my jewelry box in my room either... Especially since we'll have our lovely roommates in and out of our room to dog sit during that time and while I generally trust them this is a very expensive and sentimental item and anything can happen...
 
You are so lucky it never got lost in shipping or damaged while it was being set. :!: Yep, you really should it appraised and insured especially since it is such an expensive stone!
 
Put a set amount aside every month, such as $85, as a self-insurance fund. By doing this, with any good luck, you'll be a long way ahead in 20 years and can afford an increasing larger deductible at policy renewals over time, too. When we had a big inventory, we had saved a large fund for potential losses over many years and had a $250,000 deductible. We paid very little for great major coverage and only had a couple minor claims in over 40 years. You could easily end up with enough money to be mostly self insured for optional items, such as jewelry. You still need insurance on absolute essentials, but if you can be disciplined enough to just sock away a set amount to build up a fund for that possible rainy day, you will be way ahead of those who just pay and pay to insure everything.

The same principle applies to extended warranties on cars. If you put some of that away every month as if you had an extended warranty, you will have your own coverage long after the policy would have expired from time or mileage. If these policies did not make money for insurance sellers,you would not see them being so highly promoted. If you do it yourself, you'll be the likely one to end up with a lot of cash instead of expired policies.

Having a travelling item of jewelry with a less valuable stone is a great idea, too. Just remember, the thief looking at it on your finger or around your neck can't tell if it has value or not. Keep in mind the best way to avoid trouble is to not attract it at all. When I used to travel to Rio to buy estate items, the wives of business associates there wore no jewelry until they got inside a restaurant. They'd put it on in the ladies room and remove it before leaving after dinner. Rio is extraordinarily dangerous, but being careful is sensible.
 
Sorry if this has already been said, but, the appraisal value seems high IMO. So firstly I would shop around and see what the going rate is for a similar stone and setting, and then go from there (eg (much smaller numbers!) my ring is appraised at £7k, we paid £3.7k; it is insured for £5k as that was the average quote we were getting for the same ring (we haggled a lot and used COVID to our advantage); this saved a decent amount insurance wise).

There is no point over insuring; the insurance value should reflect what it would actually cost to replace.

Then with insurance, well, it really comes down to whether it is better to spend x amount per year on insurance, knowing you can easily replace the ring if it does get lost or stolen; or whether you are ok taking the risk, and taking the hit of replacing it.
 
IMO, insurance is a big rip-off!. Not only paying for the insurance premium every yr, but you'll also need to get the items re-appraised every 4 yrs? which = more $$$. In the past 20 yrs I probably saved over $30K on insurance premiums.
 
I feel like I can contribute to this thread (and so many of you have helped me with my questions) because years ago I was robbed at gunpoint, my e-ring was stolen and I went through the insurance process. We had State Farm. I can tell you that you should not go by the appraised value, because there is no way that you will get that. My example was a Jeff Cooper three stone ring with GIA .85 stone; I believe we paid about 5k total, and it was appraised at around 8. I naively assumed that they would just cut a check for an amount between 5-8k. Oh no. At least not with SF. Insurance companies contract with certain jewelers, and they give you the option of replacing your ring for you, or giving you $ to buy your own. We wanted the $ because I wanted to use the exact same vendor in NY where I got the center stone, and also get the same Jeff Cooper setting. It started off being a real nightmare because they just did a value of a three stone ring with .85 diamond, and since they work with their own jewelers, they get those wholesale prices so they $ they offered us was WAY lower than what we paid. I think they wanted to give us only 3k, because according to them that is how much they could replace the ring for. So they always encourage you to go with their companies to replace the ring, since that is how you get the best "deal". We had to really fight with them, which was really upsetting because I was already traumatized by the experience. What saved us is that we made sure that the paperwork submitted clarified that it was a Jeff Cooper ring, which was a brand name. So sure they could get a three stone for a certain price, but they couldn't necessarily get the brand. It was still a frustrating process with a lot of phone calling and emailing, and finally they ended up giving us about 5k to replace (again - not at all close the the 8k). Despite this, you pay premiums based on the appraisal, and annoyingly, those premiums often go up every year for "inflation". It angers me because I know that if it happened again, they won't pay near the appraised value. I have since collected more expensive jewelry, and I only have some of the priciest things insured. But when I insure them, I either just use the paperwork form the jeweler - the receipt, GIA report and description, and have them insure it for that amount, or I explain to the appraiser that I only want it for insurance purposes. And be sure to include the brand if there is one. This of course is for a personal articles policy, and again I think is only worth it if you have really high ticket items (which of course you do if it's over 3ct and VB). But if you were able to replace an item that is 5-6K I don't think insurance is worth it, especially since another thing you can do for smaller items is add a rider to your homeowners policy. Riders aren't that pricey, and would help cover jewelry if ever something happened to your home. I realize this is a long post, but I learned a lot from my insurance experience - and SF is one of the big companies so I would think other places have similar practices. It's one of those situations where you don't really know how it works until it actually happens to you!
 
I believe in insuring my big ticket jewelry items, and insuring them with a jewelry-specific insurance company. State Farm =/= Jeweler's Mutual

Many (most?) boyfriends and new husbands don't realize just how important a woman's engagement ring is to her. So its no wonder yours doesn't consider your ring a top priority. But can you image how you'd feel if your ring was lost, damaged or stolen and you were forced to significantly downgrade, perhaps for the rest of your life? I personally would be devastated. I'd rather have any other material object in my life taken away than my engagement ring.

And I absolutely don't believe in squirreling my jewelry away in a bank vault. Things that bring you joy and that you've spent your hard earned money on (whether its your jewelry, or your fine china or your favorite sweater) are meant to be used, worn and enjoyed, not hidden away for some unknown date in the future or that once a year special event. Especially an engagement ring!!! (Of course don't wear bling in situations where you aren't safe, that's different.)

So do what you need to do to wear and enjoy your jewelry with peace of mind.

I'd much rather spend $1200 a year ($100 a month) to wear my jewelry daily with peace of mind than do the other silly things people do with their money like buy the latest iPhone every year or lease an expensive car. To save $100/month I'd dine out 2-3 fewer times per month and be able to ensure my ring.
 
I’d get a quote from whoever you have your home insurance with and get something on it. Most of my policies are with state Farm.
 
I don’t insure, its a personal decision. There are valid arguments both for and against.
My engagement ring is appraised at $60,000, likewise the annual premium for insurance would be around $1,500.
ive had the ring 21 years, so that’s over $30,000 in insurance premiums I would have paid.
That said, we have a fire proof safe, we have an alarm and security shutters, we have dogs and I am retired.
I don’t wear expensive jewellery to the gym, to the beach or on holidays. I wear or take modest pieces, pieces I wouldn’t be upset about if they were lost or stolen.
Every day I check my jewellery before I leave the bedroom.
I check for loose gems, worn clasps, I double check my earring backs, my bracelets all have double lock clasps or a safety chain.
Over 50 years of jewellery ownership I have lost only a few items.
 
Mreader said:
I feel like I can contribute to this thread (and so many of you have helped me with my questions) because years ago I was robbed at gunpoint, my e-ring was stolen and I went through the insurance process. We had State Farm. I can tell you that you should not go by the appraised value, because there is no way that you will get that. My example was a Jeff Cooper three stone ring with GIA .85 stone; I believe we paid about 5k total, and it was appraised at around 8. I naively assumed that they would just cut a check for an amount between 5-8k. Oh no. At least not with SF. Insurance companies contract with certain jewelers, and they give you the option of replacing your ring for you, or giving you $ to buy your own. We wanted the $ because I wanted to use the exact same vendor in NY where I got the center stone, and also get the same Jeff Cooper setting. It started off being a real nightmare because they just did a value of a three stone ring with .85 diamond, and since they work with their own jewelers, they get those wholesale prices so they $ they offered us was WAY lower than what we paid. I think they wanted to give us only 3k, because according to them that is how much they could replace the ring for. So they always encourage you to go with their companies to replace the ring, since that is how you get the best "deal". We had to really fight with them, which was really upsetting because I was already traumatized by the experience. What saved us is that we made sure that the paperwork submitted clarified that it was a Jeff Cooper ring, which was a brand name. So sure they could get a three stone for a certain price, but they couldn't necessarily get the brand. It was still a frustrating process with a lot of phone calling and emailing, and finally they ended up giving us about 5k to replace (again - not at all close the the 8k). Despite this, you pay premiums based on the appraisal, and annoyingly, those premiums often go up every year for "inflation". It angers me because I know that if it happened again, they won't pay near the appraised value. I have since collected more expensive jewelry, and I only have some of the priciest things insured. But when I insure them, I either just use the paperwork form the jeweler - the receipt, GIA report and description, and have them insure it for that amount, or I explain to the appraiser that I only want it for insurance purposes. And be sure to include the brand if there is one. This of course is for a personal articles policy, and again I think is only worth it if you have really high ticket items (which of course you do if it's over 3ct and VB). But if you were able to replace an item that is 5-6K I don't think insurance is worth it, especially since another thing you can do for smaller items is add a rider to your homeowners policy. Riders aren't that pricey, and would help cover jewelry if ever something happened to your home. I realize this is a long post, but I learned a lot from my insurance experience - and SF is one of the big companies so I would think other places have similar practices. It's one of those situations where you don't really know how it works until it actually happens to you!
Click to expand...

There are some policies where they just reimburse you for the appraised value. Depends on the policy. So read your policy carefully and discuss with your insurance carrier, or broker.
 
I only insure my ER because it is way too expensive to insure the rest of my jewelry. It is a personal decision however and one that you need to think about and weigh the pros and cons. I look at it this way. I can live without my jewelry but I could never replace my ER easily so I insure that. The other bling is less critical. It is expensive though and I am paying over 1K a year to insure my ER. And that is at a huge discount because we get all our insurance policies through one company and so we get multiple discounts. Otherwise it would have been closer to 2K a year to just insure my ER. If my ring is lost or stolen I get full replacement value.
 
I lost a diamond stud years ago that was very sentimental to me. My x husband gave them to me when I gave birth to our daughter. I’m so glad my jewelry was insured. I have Chubb. They were fantastic to deal with for filing a claim and my jeweler at the time even said so they are tops for claims. They are not cheap tho.

I’ve heard USAA is one of the tops for automobile insurance so perhaps the same is true for jewelry?
 
My post was not to advise against insuring the ring, btw, because yes a 3+ ct VC ring should be insured. My 3ct yellow ring is insured for instance. And as the above pser said, who would want to downgrade?! . It’s just that if it actually does get lost or stolen, it’s not always as simple as “here’s a check for the appraisal”. But now I’m inspired to look at more policies - I don’t even remember what I pay at SF bc all my stuff is insured with them.
 
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