Whiteflash ACA Diamond

[diamondseeker2006]

I am so glad you love your diamond! I was fairly certain you would!

Perfect Circle/Jeweler's Mutual is a good choice because they will insure the stone while being set, and most will not. You will probably need the setting information. There is no reason to insure for more than the purchase price, because unless diamond prices have an unusual spike upward, you'd be paying extra premiums for nothing. They aren't going to pay out extra for the replacement no matter how much you overinsure. Prices have been stable over the last couple of years even with some decreases. Just check WF prices yearly and see if you need to bump up your coverage a little. Mine has had no need to go up in the last two years. A couple of advantages of having a separate jewelry policy is that #1, JM will work with WF on your replacement should your stone be lost/stolen/destroyed, and there is no guarantee that homeowners would. Plus, if you have a jewelry claim on your homeowners, it is possible your whole policy rates could go up. So I definitely keep my jewelry separate.

 

[BlingBling87]

I got engaged this past weekend...here is a picture of the final product. Thank you again to everyone for you input. I love it.

Question...i contacted Jewelers Mutual to get a quote and they said to insure the ring based on the appraised value.

My question is .... he paid about $4,000 less than the appraised value. If I insure the ring for what he paid it would be $200 a year... if I insure the ring based on the appraised value it would be $328 a year. I am not sure what to do?

 

[BlingBling87]

I guess what i am trying to figure out is in the event that i drop my ring down a black hole..if i only paid the premium for what he paid vs worth would my replacement ring be of lesser quality? Are they saying that the appraised value is the true cost of replacing my ring if something happens? Or is this just another insurance co. trying to get more of my money?

 

[newjourney]

Your ring looks great! It's classic and modern at the same time. Congratulations on your engagement!

Regarding the premium, that's all dependent on the declared value of your ring. JM allows you to dictate the value that you want to be insured, given it's not lower than the paid price. Therefore, you can opt to insure your ring at the paid price, $1 more or the appraised value. Some people are more practical than me and insured their rings at the paid price. Judging that the price of 1-2 ct diamonds has actually gone down about 5% since December 2013, paying at the paid price appears justified.

Should you guys decide to insure at the appraised value, the insurance companies will only pay just enough for you to get a comprable replacement. They will not pay at the insured amount if they don't have to. However, insuring at the appraised value protects you in the event diamond prices go up at the time you need a replacement. Appraised values are about 30-40% more than the paid price so they offer a good buffer to diamond price fluctuations, but I think that buffer is excessive. For me, I opted to insure my fiancé's ring at 15% more. I know I'm paying a luxury premium, but it's for peace of mind so it's worth it. There's no right or wrong in how you want to insure your ring. It's a matter of choice and it's basically a gamble on how much you think diamond prices may fluctuate in the future.

There's a recent thread on another insurance company (Lavalier) that appears to offer a lower premium than JM that may give you more options and flexibility.

Hope this helps.