Jewlery Insurance

[cupcake34]

Thanks for your answers... it really makes me think.

I was just worried about how many people might know about your jewellery, and if something happens, would the insurance company really indemnify me?

 

[Myrkur]

Thanks for your answers... it really makes me think.

I was just worried about how many people might know about your jewellery, and if something happens, would the insurance company really indemnify me?

You can always make photos of all your items and maybe if you're afraid they won't see you as the owner you can also take pictures of you wearing the item.

 

[doreenjoy]

I no longer insure jewelry because:

1. When I wear the expensive pieces (which is often) I'm more cautious with them (so I'm not likely to lose or break them while wearing them, and I don't go into questionable neighborhoods)

2. most insurance policies only cover "replacement", meaning you have to replace the item and the insurance company pays the jeweler; you don't receive money directly. At my age, there are very few pieces I'd want to replace if I lost them (because I don't have that many jewelry-wearing years left), and I can cover the value of those.

I'm kind of getting over "stuff" and enjoying more perishable/disposable luxuries, like fresh flowers (I have three big arrangements right now and they are giving me more joy than most of the jewelry I own). So why insure stuff that I don't value when the insurance will just pay for rebuying the stuff I don't value?

 

[cupcake34]

Yes, that's a good point. But I guess everyone's different; I would be devastated if I lost my jewellery or if it got stolen and I couldn't replace it.

 

[Vegas Long Legs]

I no longer insure jewelry because:

2. most insurance policies only cover "replacement", meaning you have to replace the item and the insurance company pays the jeweler; you don't receive money directly. At my age, there are very few pieces I'd want to replace if I lost them (because I don't have that many jewelry-wearing years left), and I can cover the value of those.

[/QUOTE}

This is the main reason I don't. (Insurance fraudsters spoiled it for the rest of us..) Did insure when they would give me the money to buy what I wanted. Also would rather have the money for other things. So I'll save what we'd spend in premiums for those other things. Never mind how much premiums have risen since 2005.

I have an eternity band that I insured cause I wear it a lot. Never while traveling though. Agree with the person who stated use Jewelers Mutual. If you have a theft, you aren't messing up your homeowners policy with a claim.

There is so much one can do just to prevent.theft. Be very careful where wearing expensive pieces. Never travel with expensive jewelery, not so much so it won't get stolen but for your own personal safety. Wearing expensive jewelry says MONEY, which makes you a mark. Have experienced it myself, first time overseas. Cured me real quick. Some countries take hostages for a $500 ransom! Again its about safety, you can replace a ring but not your life. Not looking like you have money when you travel is a safety precaution.

I live in a 24/7 guard gated community. No one 'sneaks' in here, there are roving guards & cameras everywhere. Everyone who doesn't live her is let in under tight conditions. We have a top security system on our house. And the hidden safe. Living in the right neighborhood, controlling who goes in & out of one's home helps prevent theft. Neighborhood watches help. Cops say dogs that bark are a great deterant when it comes to robbing a home The very few of my neighbors who've had issues with theft got sloppy. Every single time it was letting contractors have access to their home while gone. The subs came & went, so did some of the valuables.

 

[doreenjoy]

Did insure when they would give me the money to buy what I wanted.

Same here. The new replacement-paid-to-retailer policy also removed any incentive I used to have to shop for a bargain when pieces needed replaced.

There is so much one can do just to prevent.theft. ...

The very few of my neighbors who've had issues with theft got sloppy. Every single time it was letting contractors have access to their home while gone. The subs came & went, so did some of the valuables.

Even those of us who live in apartments can do a lot to prevent theft. Never give keys to anyone. Hide valuables when contractors come in, and close off rooms they don't need access to so they don't get a good look at your furniture or TV or computer (I've heard of cases where service people come in to repair an appliance or install a service, but they are casing the place for theives). Find a couple of secure places to stash things, and don't use obvious places like the refrigerator or in the bedroom (thieves know these tricks).

Thieves will grab "obvious" valuables like jewelry and electronics, but they often aren't that knowledgable about what's valuable. I read on the forum a few years ago about someone whose stack of Hermes boxes in the closet was untouched, but her Chanel costume jewery (in the Chanel-branded pouches) was stolen. My BF had a break in about 20 years ago, and his very valuable modern art collection was untouched. Thank god the theives had never heard of Louise Nevelson -- BF has a stunning piece by her that I totally covet!

 

[alf13]

I'm kind of getting over "stuff" and enjoying more perishable/disposable luxuries, like fresh flowers (I have three big arrangements right now and they are giving me more joy than most of the jewelry I own). So why insure stuff that I don't value when the insurance will just pay for rebuying the stuff I don't value?

I really, really like this train of thought and find myself drawn more and more toward "disposable luxuries" or luxurious experiences such as travel, food, and spa days instead of luxury goods. I've sold quite a bit of jewelry over the last couple of years and now find that having less in quantity helps me appreciate the quality of the items I wear everyday. The older I get, the more freedom I find in simplicity and a relative minimalism. There's something comforting to me to have reduced the number of items I have to worry about.

 

[chicmom78]

I no longer insure jewelry because:

1. When I wear the expensive pieces (which is often) I'm more cautious with them (so I'm not likely to lose or break them while wearing them, and I don't go into questionable neighborhoods)

2. most insurance policies only cover "replacement", meaning you have to replace the item and the insurance company pays the jeweler; you don't receive money directly. At my age, there are very few pieces I'd want to replace if I lost them (because I don't have that many jewelry-wearing years left), and I can cover the value of those.

I'm kind of getting over "stuff" and enjoying more perishable/disposable luxuries, like fresh flowers (I have three big arrangements right now and they are giving me more joy than most of the jewelry I own). So why insure stuff that I don't value when the insurance will just pay for rebuying the stuff I don't value?

When you say most ins. companies only pay to replace an item, say for example you have a Cartier or VCA piece that was X amount of dollars 5 years ago when you insured it but now that same piece has gone through a few price increases since then. Will they cover the cost of what the piece is now or only for the amount you paid for it then?

 

[acrowcounted]

When you say most ins. companies only pay to replace an item, say for example you have a Cartier or VCA piece that was X amount of dollars 5 years ago when you insured it but now that same piece has gone through a few price increases since then. Will they cover the cost of what the piece is now or only for the amount you paid for it then?

Theoretically you are supposed to have the items reappraised every year to account for such things. I'm not sure what would happen but I'm guessing they would hassle you over the price difference.

 

[Longchamp]

When you say most ins. companies only pay to replace an item, say for example you have a Cartier or VCA piece that was X amount of dollars 5 years ago when you insured it but now that same piece has gone through a few price increases since then. Will they cover the cost of what the piece is now or only for the amount you paid for it then?

Yes you will only get what you had them insured for. You must get a new appraisal if they are worth more than the original appraisal.

 

[doreenjoy]

Yes you will only get what you had them insured for. You must get a new appraisal if they are worth more than the original appraisal.

And just to beat the dead horse "you" wouldn't get the money -- the jeweler you purchase a replacement piece from would get the money.

There are exceptions to the "replacement only" policy, but those plans cost more. I believe Jeweler's Insurance and Chubb are two.

 

[acrowcounted]

And just to beat the dead horse "you" wouldn't get the money -- the jeweler you purchase a replacement piece from would get the money.

There are exceptions to the "replacement only" policy, but those plans cost more. I believe Jeweler's Insurance and Chubb are two.

See that's what I don't understand. I get it if you are viligant about updating your policy to match the value of your item but what if you're not? Example (completely made up): let's say I have a 2ct ering that I bought for 30k and get it insured for 30k...ten years from now that ring is stolen but I've never updated my policy so although it would now cost 50k to repurchase the ring, im only covered for 30k. What does the insurance company do? I'm thinking they cut me a check for 30k.

 

[chicmom78]

Yes you will only get what you had them insured for. You must get a new appraisal if they are worth more than the original appraisal.

But let's say I had a love bracelet. I payed $6000 for it today. If I had it reappraised 5 years later how do they go about it? Since Cartier prices are increased more than the actual worth of the bracelet. They cut Cartier a check for $6000 and I have to come up with the difference of whatever the new price is?

 

[Vegas Long Legs]

^^^ read your policy & see if it states full replacement value. Otherwise they pay Cartier the $5,000 that you insured it for.

And just to beat the dead horse "you" wouldn't get the money -- the jeweler you purchase a replacement piece from would get the money.

There are exceptions to the "replacement only" policy, but those plans cost more. I believe Jeweler's Insurance and Chubb are two.[/QUOTE}

Last year I called several jewelery insurance & regular insurace companies. Went through the whole song & dance if I insure & pay for coverage for $100,000 (example - current over inflated replacement value) & can buy a stone same size cut etc at Sotheby's/Chrisities for less, I should be able to get the difference in price with a check cut to me. After all, I paid for coverage on $100,000. I was the one who did my home/legwork & bought for less. They wouldn't budge. I get it - its their business, they are able to run it the way they want.

I also said lets insure it for what we paid for it many years ago. No one would do that either. Would be happy to get what we paid for it back. (Don't consider this an investment even with it going up in value, it does not generate income for me. And I've only gained if I sold it.)

Don't believe I was offered the kind of coverage I was looking for more money.

They did tell me there was so much fraud committed, the old way. Spent more than $20,000 insuring my engagement ring for 9 years. The rates continue to go up, I just can't justify it anymore. DH bought this stone many years ago, we don't have in it what they sell for now. Nor would I buy one for what it sells for now. I don't wear it that much except in a very controlled environment. If I lose it, it will not change my life financially. It'll be one of those things at my age that I say, if my health isn't affected its not a big deal.

What is right for one isn't right for all. I too believed in insuring jewelry, under the old way.

I would bet world wide more jewelry isn't insured, than is. And its the really high end stuff, that people buy after they've had many years of success & have the retirement funded, kids grown, etc. that isn't insured.

 

[doreenjoy]

See that's what I don't understand. I get it if you are viligant about updating your policy to match the value of your item but what if you're not? Example (completely made up): let's say I have a 2ct ering that I bought for 30k and get it insured for 30k...ten years from now that ring is stolen but I've never updated my policy so although it would now cost 50k to repurchase the ring, im only covered for 30k. What does the insurance company do? I'm thinking they cut me a check for 30k.

You should read your policy, but that isn't the way the jewelry insurance I had (through my homowners policy) worked. They would never cut me a check. Never.

What they would have done in the scenario you give is pay a jeweler that 30k for a piece to replace the old one, and you would have to pay for any difference in value over what you had insured it for.

I think Vegas LL is explaining this better than I could. But the real authority on what you get is your insurance policy.