Wedding/Engagement Ring Insurance

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PavlovsCat
Posts: 19
Joined: Thu Aug 15, 2019 11:57 pm

Re: Wedding/Engagement Ring Insurance

Post by PavlovsCat » Thu Sep 05, 2019 8:05 pm

RJC wrote:
Thu Sep 05, 2019 9:44 am
simplesimon wrote:
Thu Sep 05, 2019 7:43 am
RJC wrote:
Thu Sep 05, 2019 7:30 am
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.
The fact that the replacement may cost you $15k+ is how this should be viewed, sham or not. If you're having a hard time paying insurance for it, I bet you really did not want to buy the diamond in the first place.
I was fine buying it 8 years ago but the more I learned about the diamond industry, the more I view it as a sham.
Same here. Bought the ring when I was 27, basically a kid. Fell for the “three months wages” gimmick. I’ll also add that my wife’s diamond cracked without any known trauma; no dropping, car door slammed on it, etc. The crack was discovered at a routine cleaning.

Topic Author
RJC
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Re: Wedding/Engagement Ring Insurance

Post by RJC » Fri Sep 06, 2019 6:57 am

PavlovsCat wrote:
Thu Sep 05, 2019 8:05 pm
RJC wrote:
Thu Sep 05, 2019 9:44 am
simplesimon wrote:
Thu Sep 05, 2019 7:43 am
RJC wrote:
Thu Sep 05, 2019 7:30 am
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.
The fact that the replacement may cost you $15k+ is how this should be viewed, sham or not. If you're having a hard time paying insurance for it, I bet you really did not want to buy the diamond in the first place.
I was fine buying it 8 years ago but the more I learned about the diamond industry, the more I view it as a sham.
Same here. Bought the ring when I was 27, basically a kid. Fell for the “three months wages” gimmick. I’ll also add that my wife’s diamond cracked without any known trauma; no dropping, car door slammed on it, etc. The crack was discovered at a routine cleaning.
De Beers had the best marketing campaign at that time.

SuperSaver1975
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Re: Wedding/Engagement Ring Insurance

Post by SuperSaver1975 » Fri Sep 06, 2019 8:49 am

unclescrooge wrote:
Thu Sep 05, 2019 4:11 pm
SuperSaver1975 wrote:
Thu Sep 05, 2019 8:12 am
My wife had an engagement ring worth about $10,000 thanks to my MIL giving me a family heirloom diamond to use in it. I bought the setting. When my wife and I bought our first townhouse, we put a rider in our homeowner's insurance to insure the ring. Later, when we moved to another state & bought a new house, we kept the same insurance company and instructed our insurance agent to keep the same rider on the ring. After some time we hired a maid service to clean every 2 weeks. It was my wife's idea, I didn't like it. I said "sooner or later, they are going to steal from us". And they did. A maid stole my wife's ring, and sold it at a local pawn shop for $500. By the time we figured this out, the ring had long since left the pawn shop (melted down, diamond gone).

It turned out that the insurance agent never put the rider for the ring in the insurance policy after we moved to a new house. He messed up, and we also messed up by not catching his mistake. It was a real shock to report our loss to the insurance company, only to find out that the rider that we had previously & specifically instructed to be in our policy was not there. Eventually a persistent local cop was able to get the (former) maid to confess, even though she could have got away with it if she stonewalled. She was found guilty in a court and ordered to pay us $10,000 (which took years to collect).

I think an insurance rider on a valuable engagement ring is a good idea.
How did you collect on that judgement?
The ring thief confessed to her guilt in court, and was ordered by the court to pay us $10,000. The money only sporadically trickled in for several years, often going a year or so with no payments. We wondered for a while if she was going to simply ignore paying us, and we wondered how the legal system works in a situation like this. Eventually she deposited a large sum to pay off the rest.

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NORDO
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Re: Wedding/Engagement Ring Insurance

Post by NORDO » Fri Sep 06, 2019 9:04 am

msi wrote:
Thu Sep 05, 2019 8:13 am
We use Jeweler's Mutual.

I would think if you put a ring on your homeowner's insurance and then need to make a claim, your premiums for the entire policy, not just the rider will go up?
It very well might.

My wife's ring was damaged (it cracked and some stones - not the center one - fell out) so we made a claim for the repairs (it has to be completely re-made) as the ring was covered under a rider on our homeowner's policy. The insurer said it shouldn't impact our rates...

The renewal info arrived last month - and our homeowner's is increasing by $1100, $1000 of which is due to the claim :annoyed according to our agent. By the time the claims come off (5 years) we'll have paid well more in increased premiums than the claim was worth. Still trying to figure out how to get around this before the new premium goes into effect.

So, my $0.02 at this point is to recommend only ever insuring via a separate company (e.g. Jewelers Mutual) so you can be certain claims don't affect your other premiums.

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msi
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Re: Wedding/Engagement Ring Insurance

Post by msi » Fri Sep 06, 2019 11:45 am

NORDO wrote:
Fri Sep 06, 2019 9:04 am
msi wrote:
Thu Sep 05, 2019 8:13 am
We use Jeweler's Mutual.

I would think if you put a ring on your homeowner's insurance and then need to make a claim, your premiums for the entire policy, not just the rider will go up?
It very well might.

My wife's ring was damaged (it cracked and some stones - not the center one - fell out) so we made a claim for the repairs (it has to be completely re-made) as the ring was covered under a rider on our homeowner's policy. The insurer said it shouldn't impact our rates...

The renewal info arrived last month - and our homeowner's is increasing by $1100, $1000 of which is due to the claim :annoyed according to our agent. By the time the claims come off (5 years) we'll have paid well more in increased premiums than the claim was worth. Still trying to figure out how to get around this before the new premium goes into effect.

So, my $0.02 at this point is to recommend only ever insuring via a separate company (e.g. Jewelers Mutual) so you can be certain claims don't affect your other premiums.
Ouch yeah, that was my exact concern. I'm sure it's the same story at most home insurance companies.

psteinx
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Re: Wedding/Engagement Ring Insurance

Post by psteinx » Fri Sep 06, 2019 12:14 pm

I'm a fan of the TV show Antiques Road Show. Ordinary-ish folk present their items to appraiser folks, and are often surprised at the end by the news that their $200 hand-me-down from Grandma would actually sell at retail (per the appraiser) for, say, $9000, and that it should be insured for $12000.

Do folks actually assure this kind of old junk (my word)? The folks in question may have sentimental attachment to the item (or not), but 5 minutes ago, it had quite modest value to them, now they should pay some annual premium to insure $12K against losing something that to them was worth maybe $200? And even if the item is lost, you often can't really buy a replacement anyways - it's some unique historical artifact.

Anyways, I agree with the general sentiment that you shouldn't buy a ring so expensive that it would be a tragedy if lost. I don't know if my wife lists here engagement ring/jewelry on our homeowner's ins. - it's probably covered under the general rider for personal possessions - dunno. In any case, if she lost it, I'd probably buy her a new one, but it wouldn't be the same as the original (sentimentally)...

protagonist
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Re: Wedding/Engagement Ring Insurance

Post by protagonist » Fri Sep 06, 2019 1:11 pm

dboeger1 wrote:
Thu Sep 05, 2019 2:36 pm
Think about this logically and philosophically. What is insurance? Commercial insurance is essentially just offloading and pooling risk for a cost. Insurance companies are big businesses that make good money by effectively estimating and capitalizing on risk. They do everything in their power to tilt the edge in their favor. In that sense, they're not all that fundamentally different from casinos. Yes, you might win on a slot pull, but on average, the casino comes out ahead.

So why would any sane person go to a casino? For entertainment and the thrill of having a chance to win money. That's worth something to many people, right? Similarly, people buy insurance for peace of mind in the event of an unexpected loss. Ultimately, it's up to each individual to determine what that's worth to them. There are perfectly legitimate times to insure something. For example, most people aren't financially prepared to endure the loss of their home, so they buy home insurance. This is an effective means of protecting one's investment for an affordable cost, since the alternatives are to simply buy less home or make way more money, which can often be out of reach for typical families.

Here are my problems with buying wedding/engagement ring insurance:

1) This is arguably your first purchase as a committed couple. You're signing up to live a long and happy life together. If you can't afford to self-insure your ring because it's too expensive for your financial comfort level, it's too expensive, and you're starting your marriage off on the wrong foot when it comes to spending. How are you going to cope with funding retirement, children's educations, taxes, etc.? This is literally the very first thing. Let's say you were to take up playing a new instrument. You probably wouldn't buy the most expensive one of its kind on the first day and apply for your national symphony orchestra. The marriage absolutely should not live or die by whether the ring is insured (and if it does, that's a bad sign).

2) Ring purchases are done at a time of extreme emotional ups and downs, and are less likely to come from a place of calm unbiased clarity, which means you're probably over-spending as it is (we all do to an extent, it's a natural thing to celebrate). Again, feeling the need to insure your rings is just a signal that you've taken it so far that even your excited newlywed self is skeptical. It's like coming to the realization that you have to spend most of your income to insure an exotic car that you just bought with your entire life savings.

3) I know marriage can feel magical at first, but at the end of the day, it's still just a ring. That may not be a popular thing to say, but I've only been married 4 years, and I can tell you the wedding euphoria is far from eternal. So much of marriage is debating whose turn it is to do the laundry and boring stuff like that. I promise you that whether or not the ring gets lost is near the very bottom of long-term marriage priorities.

4) It's easy to get sold on insuring small stuff when you're young and have less income and savings. Don't make the mistake of assuming that you'll be in the same financial position forever. Buying a house is typically the exception rather than the norm, because people tend to borrow several times their annual income to afford them, so there's a certain long-term confidence in insuring a home. But for all you know, you and your bride might double your collective income before you know it. Or heck, it could go the other way, and you could have children sooner than you anticipated who could use that ring insurance money to pay for their needs. A lot can change relatively quickly early on in marriage, so your personal valuation of the coverage may only be appropriate for a brief snapshot in time.

5) People "renew" these kinds of things all the time. It may sound cheesy, but again, if you end up being far more successful than you anticipated, you might find that you can afford a much nicer 10th anniversary ring, a second honeymoon, etc. My wife and I actually didn't have a proper wedding ceremony with family and everything. We got married on a whim while I was visiting her overseas, and that was it. She still bugs me about it to this day, saying I owe her a wedding. The beautiful irony of it all is that at the time, a wedding would have set us back in a major way, but now, we both make more than enough that we could splurge on an extravagant ceremony and pay for all our relatives to fly to some exotic location, and it would be a fraction of our annual income. I used to make fun of the idea of "renewing" vows and stuff like that, but now that I have witnessed the compounding potential of delaying gratification, I realize a financially sound marriage is actually a great reason to celebrate time and time again through the years.

6) As others have already mentioned, there's something sentimental about THE ring, and getting a replacement through insurance is not really the same thing. At that point, you may as well invest what would have been the premiums, and by the time it might get lost, you will likely be able to afford a substantially nicer replacement anyway, one that gets picked out as a couple.

At the end of the day, all of these points really just boil down to the same thing, which is that if you insure everything, the only ones saving money are the insurance companies, because you're doing the selling for them. Insurance is not something you should do willy nilly just because somebody told you it was a good idea. Do it with intention. Buy insurance when you know what it is you're buying and what it's worth to you. Don't buy it because you've been tricked into believing that it will magically prevent anything bad from ever happening to you. It doesn't do that by magic, it does it with your money, and it will bleed you dry like a casino bleeds a gambling addict dry. But if you use it sparingly to protect certain things that you are unprepared to replace with your own savings, then sure, it can be used to great effect.
Very well put. I agree with everything you say about insurance. Insurance is, by its nature, gambling with the odds stacked stiffly against you. Thus IMHO it should be only used for protecting against catastrophic losses from which you either could not recover, or from which recovery would impose a very serious financial burden (thus the rationale for health insurance and auto liability insurance, for example).

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NORDO
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Re: Wedding/Engagement Ring Insurance

Post by NORDO » Fri Sep 06, 2019 1:28 pm

msi wrote:
Fri Sep 06, 2019 11:45 am
NORDO wrote:
Fri Sep 06, 2019 9:04 am
msi wrote:
Thu Sep 05, 2019 8:13 am
We use Jeweler's Mutual.

I would think if you put a ring on your homeowner's insurance and then need to make a claim, your premiums for the entire policy, not just the rider will go up?
It very well might.

My wife's ring was damaged (it cracked and some stones - not the center one - fell out) so we made a claim for the repairs (it has to be completely re-made) as the ring was covered under a rider on our homeowner's policy. The insurer said it shouldn't impact our rates...

The renewal info arrived last month - and our homeowner's is increasing by $1100, $1000 of which is due to the claim :annoyed according to our agent. By the time the claims come off (5 years) we'll have paid well more in increased premiums than the claim was worth. Still trying to figure out how to get around this before the new premium goes into effect.

So, my $0.02 at this point is to recommend only ever insuring via a separate company (e.g. Jewelers Mutual) so you can be certain claims don't affect your other premiums.
Ouch yeah, that was my exact concern. I'm sure it's the same story at most home insurance companies.
For the record, we use Amica (highly regarded around here) and have for years - and I've always loved them. Still do, as far as overall service goes.

But now our $65/yr jewelry rider may end up costing us $3000 or more in increased premiums.

Thus, I'm shopping around right now...

IMO
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Re: Wedding/Engagement Ring Insurance

Post by IMO » Sat Sep 07, 2019 8:25 pm

RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Never got it. True story though, future spouse threw the ring out in the trash while we on vacation before I proposed. Found it fortunately after quite a scare.

I would ask more what are you insuring the ring for specifically? Is it that you're afraid it will get stolen from your home or are you afraid that it will fall out of the setting and be lost forever?

I don't understand worrying about a diamond ring being stolen from one's home. There are literally thousands of spots throughout our house that I could easily hide a tiny diamond ring that no thief would even remotely consider thinking to look.

If you're insuring for it coming out of it's setting, I wonder what the statistical odds of that happening?

I suppose one could get mugged and the mugger takes the ring. Odds of that?

I'd get rid of the insurance. It's about the equivalent of car insurance for an old car every year.

Topic Author
RJC
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Re: Wedding/Engagement Ring Insurance

Post by RJC » Sun Sep 08, 2019 7:39 pm

IMO wrote:
Sat Sep 07, 2019 8:25 pm
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Never got it. True story though, future spouse threw the ring out in the trash while we on vacation before I proposed. Found it fortunately after quite a scare.

I would ask more what are you insuring the ring for specifically? Is it that you're afraid it will get stolen from your home or are you afraid that it will fall out of the setting and be lost forever?

I don't understand worrying about a diamond ring being stolen from one's home. There are literally thousands of spots throughout our house that I could easily hide a tiny diamond ring that no thief would even remotely consider thinking to look.

If you're insuring for it coming out of it's setting, I wonder what the statistical odds of that happening?

I suppose one could get mugged and the mugger takes the ring. Odds of that?

I'd get rid of the insurance. It's about the equivalent of car insurance for an old car every year.
I think I originally got it because the item is so small and therefore have a higher chance of being lost. My spouse tends to lose things too... But after having it for 8 years, it seems like an endless payment that goes up each year for no reason.

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9-5 Suited
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Re: Wedding/Engagement Ring Insurance

Post by 9-5 Suited » Sun Sep 08, 2019 10:46 pm

I recently took a diamond ring to a jeweler on behalf of my mom to understand resale value. The jeweler said the stones in it are so plentiful, she didn’t even want to buy it. Basically told us it is worthless in the marketplace. But that $18,500 appraisal sure looks nice, lol.

We do have jewelry insurance of about $200 annually on my wife’s ring. It’s a marginal financial decision but gives her peace of mind since she wears it every day and would feel terrible if something happened to it. That’s about 0.3% of our annual spending budget, so my reaction is “don’t really care”.

Topic Author
RJC
Posts: 314
Joined: Fri Dec 14, 2018 1:40 pm

Re: Wedding/Engagement Ring Insurance

Post by RJC » Mon Sep 09, 2019 7:35 am

9-5 Suited wrote:
Sun Sep 08, 2019 10:46 pm
I recently took a diamond ring to a jeweler on behalf of my mom to understand resale value. The jeweler said the stones in it are so plentiful, she didn’t even want to buy it. Basically told us it is worthless in the marketplace. But that $18,500 appraisal sure looks nice, lol.

We do have jewelry insurance of about $200 annually on my wife’s ring. It’s a marginal financial decision but gives her peace of mind since she wears it every day and would feel terrible if something happened to it. That’s about 0.3% of our annual spending budget, so my reaction is “don’t really care”.
That's the thing about diamonds - it's not even a rare commodity. I can't imagine getting any money for it if you wanted to sell it.

Broken Man 1999
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Re: Wedding/Engagement Ring Insurance

Post by Broken Man 1999 » Mon Sep 09, 2019 10:12 am

We have never specifically insured any jewelry.

DW's engagement/wedding set was stolen in a burglary. Her original set had a diamond that you might have been able to see up close, it was tiny. Really tiny. Her replacement set is very nice, and reflected our improved finances at the time of purchase. I have since added a band w/diamonds to the set.

Truth is, she seldom wears any jewelry. She crafts a great deal of the time and her rings would catch on things, so the rings spend the majority of the time in a chest.

Perhaps the granddaughters can re-purpose her diamonds into some type jewelry for their use.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

Nearly A Moose
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Re: Wedding/Engagement Ring Insurance

Post by Nearly A Moose » Tue Sep 10, 2019 8:39 pm

Just read the OP and replied, sorry if this is old hat now. We have about $15k of wedding jewelry insured through a personal articles policy with Travelers, who also does our homeowners. About $150-180, don’t remember exactly. In the DC area, in case that helps you.

Cumulative cost of the insurance can get high, but I’ve seen enough instances of rings falling off of cold fingers, falling down drains, etc, that I’ve chosen to do it.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

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Will do good
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Re: Wedding/Engagement Ring Insurance

Post by Will do good » Tue Sep 10, 2019 8:59 pm

RJC wrote:
Thu Sep 05, 2019 9:44 am
simplesimon wrote:
Thu Sep 05, 2019 7:43 am
RJC wrote:
Thu Sep 05, 2019 7:30 am
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.
The fact that the replacement may cost you $15k+ is how this should be viewed, sham or not. If you're having a hard time paying insurance for it, I bet you really did not want to buy the diamond in the first place.
I was fine buying it 8 years ago but the more I learned about the diamond industry, the more I view it as a sham.
It is a scam. Diamonds are not forever. They are also one of the most abundant stones on Earth.
https://thetechreader.com/tech/diamonds ... -on-earth/

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