(Closed) Ring appraised for 77k over purchase price. What do I insure it for? Poll.

posted 4 years ago in Rings
  • poll: What would you insure your ring for?

    Appraisal Value

    Purchase Price

    What you believe you would be able to replace it for.

  • Post # 61
    Member
    35 posts
    Newbee

    View original reply
    RayKay :  

    You generally don’t have an agreed value on a house, though, the way you do on a valuable articles policy. (Please also note that my experience is with “private client” carriers, who do tend to do things more freehandedly than “normal” carriers.)

    I’m not saying that you can go in without an appraisal and say, “I’d like a million dollars agreed value on this ring, please”. But with an appraisal from a reputable jeweler of your choice, it’s a different matter.

    Post # 62
    Member
    71 posts
    Worker bee
    • Wedding: September 2015

    View original reply
    anonybee1815 :  No, actually, you are indemnified for the cost of a comparable replacement piece.

    Cash value policies on jewelry are extraordinarily expensive and only available on “important” gems for which there is no comparable replacement. Your run of the mill engagement ring does not carry a cash value policy. You are insured for the cost of like replacement, which makes you whole.

    Some policies will cut you a check for what they determine the replacement cost to be, others will only replace with a like piece and only pay the jeweler who provides it. Depends on the insurer. 

    Almost no insurance policy is “agreed value”. Your homeowners policy certainly isn’t. They are “replacement value” or “market value” policies.

    I have Travelers, which says it is an agreed value policy, but in the case of a loss, I get a check for UP TO the appraisal amount, after an adjuster determines what the replacement cost is. The only difference with Travelers is they do not attempt to replace the piece, they only will pay with a check.

    Post # 69
    Member
    44 posts
    Newbee

    I would insure this for the apprasial amount. I have an expensive ring as well and insurance would just cover the apprasial (or receipt) cost, depending on what you’ve sent to them. If I re-apprasied my ring by an independant appraiser (which would appraise for more than I purchased it for, and what is currently insured), I would cover the new, higher cost. Partially because I won’t find the same stone (it was the only one in the country at the time). It is expensive, however, rings arent invincible.

    Post # 70
    Member
    621 posts
    Busy bee
    • Wedding: September 2019

    I would have a conversation with the appraiser first to determine how reasonable is their analysis.  If he appraised for significantly higher, he should be able to justify such appraisal.  If I’m satisfied the reasons seem valid, I’ll insure for that amount.

    However, if he cannot back it up with reasonable basis, I would seek another opinion on appraisal value.  It would be worth the amount I have to pay in high premium per year.  

    Post # 71
    Member
    293 posts
    Helper bee

    #1) DO NOT INSURE IT ON YOUR HOUSE INSURANCE. Get an independent insurance company. If all hell breaks loose and you lose/damage your ring, you do not want to make a claim on your HOME INSURANCE, thus raising your rates! It’ll penalize you!

    #2) INSURANCE COMPANIES WILL NOT PAY A DIME MORE THAN ITS WORTH. It doesn’t matter if you insure for $5k more or $100k more. If it is worth $30k, they will pay you $30k. Not $35k, and definitely not $130k. (Arbitrary numbers). What this means to you? You’re doing nothing but yourself harm by paying higher monthly premiums. The fee you pay is a direct correlation to the amount you insure. Again with pulling arbitrary numbers. So a $30k policy in your area will be $200 a month. If you lose that $30k ring, they will replace it with a $30k ring. A $35k policy costs $300 a month. If you lose that “$35k” ring, they will replace it with a $30k ring. A $130k policy costs you $800 a month. If you lose that “$130k” ring, they will replace it with a $30k ring. Get my drift?

     

    This question gets asked WAY too often. I wish I can make this font size a million and sticky it somewhere.

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