Jewelry Insurance - Custom Ring Options?

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bsigmund90
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Joined: Thu Aug 10, 2017 11:31 am

Jewelry Insurance - Custom Ring Options?

Post by bsigmund90 » Mon Jan 22, 2018 9:16 am

I am in the process of doing a custom ring & custom wedding band for my girlfriend.

Ring is costing me a little under 6.5k.

At the end when I was going to put the deposit down they explained the financing options, etc. Then they started in on insurance, appraisal cost, long term care plan, etc.

I know the care plan is a waste. I don't think they sell the insurance, but they will charge me like $100/piece to do the appraisal.

I wanted to research here about jewelry insurance and if it's something you all believed in. I think for the piece of mind, it makes sense to do it and it would bring a lot of piece of mind to my girlfriend as well.

I've seen a lot of bogleheads recommend jeweler's mutual - the problem that I have is that my ring is full custom. We designed it ourselves with their designer and it's not something you can get off the shelf. So if i had to file a claim, I couldn't get a "comparable replacement" from a box store. My girlfriend I don't think would be happy about getting something that's "sort of similar" back if she already had the traumatic experience of losing the ring.

Is the only option where they would cut you a check for the value to add it as a rider to homeowners? I heard those riders don't cover a whole lot (accidental loss, theft, etc).

I don't own a home, i'm still renting.

Any suggestions on who would be best to work with?

My girlfriend is USAA eligible (has their car insurance and checking/savings accounts), I'm assuming when we get married I would be as well?

scifilover
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Re: Jewelry Insurance - Custom Ring Options?

Post by scifilover » Mon Jan 22, 2018 9:37 am

The policy you are looking for is a Personal Articles Floater. The cost is usually around 1.5% of the value of the item, and the policy has no deductible. Generally, these policies provide coverage on an all-risk basis with some exclusions.

If you have a HO policy usually you can "schedule" items on the same basis as an addendum to your policy.

With all policies, the company has the option of replacing the item. Even if the item is custom made, the company can usually find a jeweler who can re-create the item ( for less than you paid) especially since you will have all the info on its creation.

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midareff
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Re: Jewelry Insurance - Custom Ring Options?

Post by midareff » Mon Jan 22, 2018 9:58 am

IMHO, any jeweler that builds a $6.5K custom ring and doesn't furnish a certified appraisal with it is a scam artist. The stone should have, at a minimum, a certified GIA or similar grading of color, size and so forth already done.... that's how they are sold. For insurance purposes you will want an appraisal done by an independent appraiser.

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Pajamas
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Re: Jewelry Insurance - Custom Ring Options?

Post by Pajamas » Mon Jan 22, 2018 11:38 am

Could you afford to replace the ring if it were lost? If so, then why pay to insure it? Usually insurance policies are best for losses you can't easily self-insure.

pshonore
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Re: Jewelry Insurance - Custom Ring Options?

Post by pshonore » Mon Jan 22, 2018 12:27 pm

scifilover wrote:
Mon Jan 22, 2018 9:37 am
The policy you are looking for is a Personal Articles Floater. The cost is usually around 1.5% of the value of the item, and the policy has no deductible. Generally, these policies provide coverage on an all-risk basis with some exclusions.

If you have a HO policy usually you can "schedule" items on the same basis as an addendum to your policy.

With all policies, the company has the option of replacing the item. Even if the item is custom made, the company can usually find a jeweler who can re-create the item ( for less than you paid) especially since you will have all the info on its creation.
I doubt most companies will issue a policy for less than $50 (and maybe $100 these days), and you usually need a valid appraisal. Remember you can always add other items to the floater (sterling silver, china, fine art, etc); anything that has has a policy loss limit less than its value to get up to the minimum premium.

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WoodSpinner
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Re: Jewelry Insurance - Custom Ring Options?

Post by WoodSpinner » Mon Jan 22, 2018 12:30 pm

As someone who has had to use this insurance TWICE for DW engagement ring, I consider the rider money well spent.

We got an appraisal (both times) as part of the Jewlery fee on the design.

Good luck

:x

bsigmund90
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Re: Jewelry Insurance - Custom Ring Options?

Post by bsigmund90 » Mon Jan 22, 2018 1:10 pm

Pajamas wrote:
Mon Jan 22, 2018 11:38 am
Could you afford to replace the ring if it were lost? If so, then why pay to insure it? Usually insurance policies are best for losses you can't easily self-insure.
For a little more than my Xbox live payment / year I can have the piece of mind knowing that I don't have to drop $6,500. To me, at least where I'm at financially right now, it would make sense / is an acceptable financial trade-off.

If I had 30-40k in my emergency fund I would say forget it, but I've only got 15k stacked away. That's 40% of my emergency fund gone if something happens.

So even if it's a custom ring, they replace it to spec? As long as my spec's are done correctly, I get the same item more or less coming back (different stones of course, but set the exact same way, etc)?

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Pajamas
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Re: Jewelry Insurance - Custom Ring Options?

Post by Pajamas » Mon Jan 22, 2018 1:39 pm

bsigmund90 wrote:
Mon Jan 22, 2018 1:10 pm
So even if it's a custom ring, they replace it to spec? As long as my spec's are done correctly, I get the same item more or less coming back (different stones of course, but set the exact same way, etc)?

Insurance usually cuts you a check and then replacement is up to you. Specs for the ring and certificate of appraisal for the stone would help but it would also be helpful to have photos from different angles including the inside of the ring if that is important to you. If the setting is standard rather than custom-made, then you might ask for the specific identifying information for it.

The amount you are reimbursed depends on the terms of the policy. It may be a set amount or it may be a depreciated amount. There may be a deductible. You may need a police report for certain types of claims. Some coverage includes repairs of damage.

MrsBDG
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Re: Jewelry Insurance - Custom Ring Options?

Post by MrsBDG » Mon Jan 22, 2018 1:50 pm

USAA does have a valuable personal property rider for jewelry. I believe it can be added to a renter's policy, I have a kid with a USAA renter policy and a valuable item rider added. I checked into the insurance a few years ago and USAA was half the price of the other places, for my quote. There are different USAA policyholder status' that can affect rates, officer, enlisted, descendent, etc.

V1RTUS
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Re: Jewelry Insurance - Custom Ring Options?

Post by V1RTUS » Mon Jan 22, 2018 1:54 pm

I have a policy on my wife's engagement ring and wedding band through Jewelers Mutual. It's worth every penny in my opinion and provides my wife with peace of mind.

Policy costs 1.24% of the appraised value annually with a $100 deductible for claims. You can shop around but the reason I went with Jewelers Mutual was their policy is basically a no-questions asked and will cover what they call 'disappearance' where you just have no idea what happened to it, in addition to known loss, damage, or theft worldwide. Some of the rider policies I looked into had some loop holes where it looked like they could potentially deny the claim based off of lack of proof; definitely something to think about.

Also, find it a bit odd that you're paying that much for a custom ring and it doesn't come with an appraisal. Maybe I had a good jeweler but mine was included and I have taken stuff to him since that he has done for free.

A good appraisal will include specific details on the main diamond, any additional diamonds or stones, the type of setting, materials and size of the ring, etc so you shouldn't have any issue getting a equivalent replacement if needed. Just make sure that taxes are considered in the amount covered by your policy, my appraisals include the estimated replacement cost - excluding taxes.
"I will do today what others won't, so that I can do tomorrow what others can't."

Hukedonfonix4me
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Re: Jewelry Insurance - Custom Ring Options?

Post by Hukedonfonix4me » Mon Jan 22, 2018 2:17 pm

I purchased a "full custom" ring as well. All I needed was an appraisal to send in through Jewelers Mutual and was all set.

We chose this route in lieu of a personal articles floater b/c there was mysterious disappearance coverage through our Jewelers Mutual quote.

This was not offered when added as a floater on our home insurance....the likelihood of filing a claim, at least in our household is much higher due to loss/theft than damage.
"While some mutual fund founders chose to make billions, he chose to make a difference." | -The Bogleheads' Guide to Investing

DIFAR31
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Re: Jewelry Insurance - Custom Ring Options?

Post by DIFAR31 » Mon Jan 22, 2018 2:58 pm

MrsBDG wrote:
Mon Jan 22, 2018 1:50 pm
USAA does have a valuable personal property rider for jewelry. I believe it can be added to a renter's policy, I have a kid with a USAA renter policy and a valuable item rider added. I checked into the insurance a few years ago and USAA was half the price of the other places, for my quote. There are different USAA policyholder status' that can affect rates, officer, enlisted, descendent, etc.
I have had a USAA Valuable Personal Property policy for years with scheduled coverage on some more expensive pieces of jewelry; the annual premium is .5% of the appraised value. There is no deductible.

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