Ring Insurance and getting comfortable wearing an expensive piece of jewelry

posted 2 weeks ago in Rings
Post # 2
1763 posts
Buzzing bee
  • Wedding: August 2018

Just to ease your stress levels, jewelry is almost always valued much higher than what you pay for it or what you could ever sell it for. I always think of appraisals as need-to-have for insurance purposes and an ego-bump for whoever bought it/is wearing it 😅

Post # 3
715 posts
Busy bee
  • Wedding: November 2020

My ring is insured through Jeweler’s Mutual.  A lot of appraisers way over-inflate value.  You want to make sure this isn’t the case or you’ll be over paying on insurance.  It’s extremely unlikely that a jeweler would sell you a diamond at a loss.

Post # 5
3628 posts
Sugar bee

Appraisals are definitely inflated and I actually asked my jeweler to be more realistic on my engagement ring because I didn’t want the higher premium for insurance.

i have a personal articles policy that is through my insurance company.  It accounts for inflation and gives you cash to replace.  The annual premium is 1% of the appraisal amount.

Definitely get it insured.  It will give you peace of mind.

Post # 6
132 posts
Blushing bee
  • Wedding: September 2021 - Australia

we insured ours a few days after he asked with an add-on clause to our home and contents insurance, covering mobile valuables for loss or theft inside our outside the home. We insured it at replacement value cost, using the invoice from the purchase rather than a valuation certificate.

Like you, I was quite nervous about walking around with a ring that cost more than the replacement value of my car and I feel a lot better knowing it is insured. The insurance premium wasn’t much – $120 AUD per year.

Post # 7
1467 posts
Bumble bee
  • Wedding: August 2019

I’ve insured my ring for its purchase value – as an addendum to my home and contents insurance. It means if I lose it, damage it or it’s stolen, no matter where I am or where it happens, I get the full amount I paid for it back. 

Post # 8
330 posts
Helper bee
  • Wedding: August 1985

I felt the same way at first, but quickly got over it!  LOL!  It is on our homeowners insurance policy so I do feel better about it now that I know it’s covered!  Enjoy your ring!

Post # 9
15017 posts
Honey Beekeeper
  • Wedding: June 2011

I would get it reapprised for closer to what you actually paid or bought it for and insure it for that value.  There’s no way it’s “worth” 5x as much as you paid for it if you can just go and buy it for that 1/5th price.  And there’s no reason to pay insurance on 5x the value if you can also go out and buy it for the price you paid.  

Post # 11
1473 posts
Bumble bee

View original reply
@VictorianWed:  Appraisals are mostly for insurance purposes as a replacement value.  They are usually double the price of what the ring may have been worth retail.  Example – you pay $2500 and the appraisal comes in at $5000.  Then the question – What is the ring really worth?  In any industry, it is worth what someone is willing to pay for it.  When it comes to diamond jewelry resale, you might get 25% of the value. I don’t really pay attention to appraisal’s other than for insurance purposes.

As far as walking around with a ring that cost as much as my car, it is an inflated price so I don’t even think about it. 

Post # 12
2832 posts
Sugar bee

Appraisals are always overinflated.

I highly doubt you got the deal of the century and a jewelry sold you a ring for 1/5th of what it’s worth.  That’s simply not how the industry works.  

I’m always amused by how many jewelers market themselves as wholesale jewelers who sell to the public.  There are some educational threads on Pricescope debunking this myth.

As far as insurance, I have a separate policy on mine (not thru homeowners) because I wanted more control over how it would be handled if my ring was lost or destroyed – my ring is bespoke with a large carat size antique diamond, so no something that can be as easily replaced as, say, a ring from Tiffany.  

Post # 13
500 posts
Busy bee

Insured through Lavalier (jewelery insurance) because I lose and fiddle with things easily! After I nearly lost my ring once, I now stopped wearing it and only wear my wedding band.

Post # 14
1514 posts
Bumble bee
  • Wedding: September 2020

Appraisals are almost always way over. Get it insured for the price you paid for it otherwise your insurer may contest it. I like Jeweler’s Mutual for insurance. 

Post # 15
6349 posts
Bee Keeper

As PPs said, appraisals are always inflated. Usually, about double what you paid. IIRC, this is so that you could replace the item through a high street store, ie, they tend to give the high street value, which, as anyone who knows about jewellery, knows is always WAY inflated. In reality you would likely go back to the same company you used originally, and replace like for like, so there is zero point paying the extra for a policy for something worth 5 times what you paid.

Not to say it isn’t possible to get a good deal: I have found that by shopping around, and buying at the right time, you can save 25-30% of the typical going rate. But I highly doubt anyone is selling anything for 1/5 of the going rate.

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