Post # 1
So my ring will be ready in two weeks *yay!* and one of the first things I want to do is insure it. Fiance paid $3700 for it from a wholesaler… At a standard retailer, For the exact same ring, same quality diamond and everything, it was $9000. I know retailers have a huge mark up but now I don’t know what to insure it for.
Do I insure it for what Fiance paid for it? Or do I get it appraised? And is that value usually more or less than what was paid for it?
Also, what’s the policy on your insurance? For instance, if you lose it, do they pay you what it was appraised for (even if it’s years down the road) or do they replace it with something of similar specs, even if the price of diamonds go up a heap in price since you bought it?
Now I wouldnt do this but can’t people just SAY they lost their ring and make a claim? I’m confused how it works :S
Post # 3
@Gemma_Leigh: I thought that you have to get it appraised in order to insure it..I’m not sure about that though. and when you appraise it they will likely appraise it as being way over what you paid.
Post # 4
You will need to get the ring appraised for insurance and send them a copy of the appraisal. The exact terms depend on your policy, but I think it’s pretty normal for your replacement value to be either the appraised value and you have to get it re-appraised every few years or based on the appraisal plus inflation.
Post # 5
@Gemma_Leigh: Now I wouldnt do this but can’t people just SAY they lost their ring and make a claim? I’m confused how it works :S
I’ve alwasy wondered the same thing too! I think you have to file a police report and stuff for the claim though so filing a false report is naturally against the law. And i know your premium would go up too, not that it would even matter cause you still would make more off the claim than the rise in rate.
For us to get it insured our homeowners, we had to send in the appraisal.
Post # 6
Do you have to send in original receipts of purchase or just the appraisal documents? I have the second, but not the first and I’ve never insured my ring…dumb I, know. But now I’m getting smarter from hanging out here!
Post # 7
@Gemma_Leigh: I would get it independently appraised and I wouldn’t use the jeweler’s appraisal. Also, insurance companies won’t pay the full amount if they think it was overly appraised. Good luck!
Post # 8
I’m in the same boat right now. We’re custom designing a ring with a local jeweler. He is giving us a life time warranty and will do an appraisal. He says the ring will appraise for way more than the $10K we’re paying. But I’m not sure how to go about getting it insured. Does anyone know if it’s a better deal to insure with a special jewelry insurer or through the home owner’s insurance?
Post # 9
I have my rings insured through my rental insurance. They told me that the amount we paid was irrelevant.
For my weddind bands the individual value was below $10,000 so they requested the appraisal value and listed that on the policy. However, for my e-ring as the value is more than $10,000 they required documentation from the jeweler (or appraiser either way) indicating the value of the ring.
Post # 9
I had to get mine appraised and just added it to the house insurance.. I think it only added $118 per year, which isn’t too bad. You should check with your insurance company, as mine told me if it was apprasied for under $7,000 that was already included in my policy and I didnt have to pay more.
Also.. my provider doesn’t have a deductible for jewellery which is nice.
I’ve also always wondered about making a claim.. woulnd’t some people just scam the system?
Post # 10
Pink shoes you’re absolutely right – you do have to file a police report and I’m pretty sure filing a false report is a felony.
Post # 11
I’m sure some people do scam the system. Just like some people steal and commit robberies!
Post # 12
You would send them the appraisal (I did). They don’t care what was paid for it. They are concerned about how much it is worth.
Post # 13
My ring came with an appraisal, which is naturally almost twice what Fiance paid for it. We use Jeweler’s Mutual for our ring insurance. The insurance pays out to cover the cost of the appraisal minus whatever your deductible is. I highly recommend Jeweler’s Mutual.
People don’t just say they’ve lost their rings because that’s insurance fraud.
Post # 14
I use Jeweler’s Mutual too. Their prices are really quite reasonable and they are very easy to work with. I did everything online for instant coverage.
Post # 15
Insurance companies don’t just hand out big checks. They do require an appraisal yes, but most will also want proof of purchase, should you ever suffer a loss, and will request the original receipt. So best to check with your insurance company about everything that you would should you ever need to make a claim.
Most appaisal are also over inflated, and insurance companies know that too, so just because the appraisal say $9000 for example, does not mean they will pay out the full amount. The will price out replacment value by themselves, and if they feel you can replace for $6000, they will only pay you that. So paying premium on over inflated appraisal values makes no sense.
Also to consider, in metal markets like this…If you appraisal is out dated, and that can happen in as much of a year nowadays, you may end up not gettting enough money from them if your old appraisal is based on metal, stone and melee prices, of say 3 years ago.