Insurance and Ring Appraisals

My insurance didn't ask for appraisal at all. They just asked how much I want to insure the ring for. So if something happens that's the amount I'm getting.

Wow really? So you can tell them $10,000 even though that isn't what you paid for it?

Thanks for the advice, I had though about getting my ring insured before, but put it off because of the costs. Where are you getting your ring insured through? Just your homeowners policy or through a different company?

I'm going through the homeowner's. It's as an addendum to the policy. Most homeowner's policy will only cover up to $500 or $1000 and you're out anything over that. So if you have anything more than that you'd be screwed basically.

But they dont send you that 10k, the way my jeweler explained is, we go to him, get my ring, & then the insurance company pays exactly what that ring is (they send the check to you).. so if you insured it for 10k, but the ring costs when you go back to buy it 6k, you will only get the check for 6k... which is some serious BS I think, because I am paying for that extra 4k to be on it... but then it covers you just incase the gold & diamonds prices go up so you covered up to 10k or whatever you insured it for...

that was just my understanding

OK I figured at some point they would ask for proof of what you paid for it. I know for a fact that Statefarm and AAA both require the appraisals up front. I do know that gold prices and diamond prices go up and down - that's why the cost of my ring has increased already in only 18 months. There is no way I could afford that extra $1000 today, let alone the $250 that my wedding bands have gone up in price in the last 5 months as well.

I guess you could insure things for whatever amount you really wanted, it's what you actually replace them for that you'd be reimbursed for - but that's still money out of your pocket up front - money I don't have. This way the insurance company can cut me a check before I replace it or cut the jeweler a check for replacing the ring.

I got mine through jewelers mutual- way cheaper than attaching it to my renters insurance. I pay $25 a year which is very reasonable and has zero deductible.

Jessica C. I have never heard of jewelers mutual, will definitely look into it... I am paying $16 for each 1k I appraised it on our homeowners insurance.. so we appraised it for 10k & that is a lot in the end.. $25 is a very good deal, but I also DO NOT have a deductible, not for the engagement ring...

I hate to burst anyones bubbles, but, the standard insurance policy (homeowners or renters) only covers a small fraction of the cost of jewelry.

In order to increase the amount of coverage, you MUST call your insurance agent and follow their advice.

@Kathy - that's what I stated, most policies will only cover the first $500 or $1000 and anything after that you're screwed on unless you have the additional coverage. I know when I was living out East I had what was then, my divorce ring on my homeowners policy and it was only an additional $72 for the year and at that time my ring was appraised at $3800. So I didn't think that was that bad. But FH and I took that ring and traded it in on what is now my engagement ring otherwise it would have just ended up in my jewelry box never to be worn again and we still would have had to carry the insurance on it.

@Jessica C. - I've never heard of Jeweler's Mutual either. How did you hear of them? Do you have that info?

I got a personal property policy (or maybe it was called a personal articles policy) through State Farm who also holds my car insurance and renters insurance policies. They based the policy off of the appraisal but they do round up to the nearest $1000 and they also added something that accounts for inflation. So for an extra couple of bucks, my policy will cover my ring even if the value goes up. Altogether the policy is only costing me around $9/month

I just got on the Jeweler's Mutual website and for my engagement ring and wedding bands it was going to cost me almost $85 for the year. I'm going to be checking with Statefarm tomorrow to see what it will cost through them by adding it to the homeowners policy.

I just got back from Statefarm and it's going to cost $101 for the year to insure both rings but that's with $0 deductible and $3 should the cost of the rings ever go up. So now I don't have to worry about keeping the appraisals up to date. This to me beats the Jewelers Mutual as theirs was $100 deductible. And Statefarms covers anything and everything from loss to theft. Even if it should accidentally go down the drain. So the $15 extra is worth the peace of mind - at least to me.