Author Topic: Jewelry insurance. Is it ever worth it?  (Read 4741 times)

Swat

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Jewelry insurance. Is it ever worth it?
« on: July 11, 2017, 05:00:29 PM »
My wife has a three pieces of jewelry worth about $20k in all. For the past couple years we've paid for jewelry insurance at a cost of approximately $320 dollars annually. Not a great deal of money, but the more I read and learn about finance, the more I see that you should only insure things you can't overcome...life, disability, homeowner's, etc... Jewelry insurance doesn't seem to make the cut. Currently I'm a resident but will be an attending in a year. My question is if anyone out there has jewelry insurance and whether it is something worth having at all...or only in select situations. Thanks. 

Cassie

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Re: Jewelry insurance. Is it ever worth it?
« Reply #1 on: July 11, 2017, 05:08:35 PM »
Your homeowners or renters insurance usually covers this. I would check.

Lady SA

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Re: Jewelry insurance. Is it ever worth it?
« Reply #2 on: July 11, 2017, 05:15:54 PM »
+1 to checking your homeowners policy. In the event of loss or theft often you can claim that (but run the numbers and make sure making a claim isn't detrimental to you, often making a claim will raise your rates). Might not make financial sense to make a claim on a $1k ring, but a $20k ring is another story.

I am very sentimental about my rings, but don't have insurance on them. I don't get them cleaned at a jewelry store, I clean them myself but have only done this once in the 3 years of wearing them. Rings don't need a lot of ongoing repair or maintenance--probably cheaper in the long run to pay for adjustments/repairs as needed (rarely if ever). Other than that I literally can't think of anything else besides loss/theft and possibly maintenance that you would ever want insurance for jewelry.
« Last Edit: July 11, 2017, 05:18:34 PM by Lady Smartass »

JoJo

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Re: Jewelry insurance. Is it ever worth it?
« Reply #3 on: July 11, 2017, 05:16:05 PM »
Your homeowners or renters insurance usually covers this. I would check.

Agree!   That is way too much to pay.  Should be cheaper if you add it on to home/renters insurance.


alpharomeo

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Re: Jewelry insurance. Is it ever worth it?
« Reply #4 on: July 11, 2017, 09:56:11 PM »
If you consult your existing homeowners insurance policy, you should make sure that their isn't a special limit set for jewelry which is common (same for other categories such as firearms, etc.).  Not saying that you should go and schedule these items, I just don't want you to have a false sense that they are covered. 

surfhb

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Re: Jewelry insurance. Is it ever worth it?
« Reply #5 on: July 11, 2017, 10:11:54 PM »
$20K in rocks?    Rock insurance?    Is this not the MMM forum anymore?   ;)

Can you get her to sell and invest that?   
« Last Edit: July 11, 2017, 10:15:39 PM by surfhb »

Paul der Krake

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Re: Jewelry insurance. Is it ever worth it?
« Reply #6 on: July 11, 2017, 11:12:03 PM »
At $50/year? Maybe.

Definitely not at what your current price.

damyst

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Re: Jewelry insurance. Is it ever worth it?
« Reply #7 on: July 12, 2017, 03:53:41 PM »
$20K in rocks?    Rock insurance?    Is this not the MMM forum anymore?   ;)

Can you get her to sell and invest that?

I think this needed to be said, although perhaps a bit more gently. The thrust of this site is that people should evaluate what they're spending money on, and ensure that the money goes into things that enrich their lives and add to their happiness. Is your wife's jewelry worth the cost to your family? If so, awesome. but if you're concerned about the 320 dollars they cost to insure each year, consider that the opportunity cost from not investing the $20k is costing you over 1000 dollars a year, and that amount is growing each year. That is assuming the pieces aren't old/rare enough to appreciate in value over time.

Swat

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Re: Jewelry insurance. Is it ever worth it?
« Reply #8 on: July 12, 2017, 07:00:22 PM »
Definitely appreciate all of the input on this. I plan on discussing with my wife this weekend. As to the cost of the rings, I didn't actually pay that much. The main stone was a family heirloom and several of the smaller diamonds were also passed down in the family. Therefore I only had to pay about 4-5k for both rings when we got married. There's no way I could have afforded much more at the time so I got lucky :) She wears those two rings every day and aren't kept in the safe. The last piece in the overall 20k valuation was also given to us when my mother in law died last year. She keeps that in the jewelry box and only wears on special occasions. We've just been insuring the full value of everything but really didn't outlay much cash up front.

Heroes821

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Re: Jewelry insurance. Is it ever worth it?
« Reply #9 on: July 13, 2017, 07:11:12 AM »
Definitely appreciate all of the input on this. I plan on discussing with my wife this weekend. As to the cost of the rings, I didn't actually pay that much. The main stone was a family heirloom and several of the smaller diamonds were also passed down in the family. Therefore I only had to pay about 4-5k for both rings when we got married. There's no way I could have afforded much more at the time so I got lucky :) She wears those two rings every day and aren't kept in the safe. The last piece in the overall 20k valuation was also given to us when my mother in law died last year. She keeps that in the jewelry box and only wears on special occasions. We've just been insuring the full value of everything but really didn't outlay much cash up front.

This is how my wife's rings are about $18k appraisal all my family's heirlooms.  Grandma's wedding ring and whatever super fancy ring the wedding ring slides into, and an engagement ring that was my Great Grandmother's, Grandmother's and my Mother's.

I shopped around for personal property insurance and the best I found was $60 a year at State Farm. 

I do agree with other posters though, home or renters should cover this.  While I don't really find it necessary to insure specific things, family heirlooms are one thing I definitely don't want to fully risk their loss. 

Also if you are going to be a Doctor make sure you checkout https://www.whitecoatinvestor.com/. He has an enjoyable blog with a lot of specifics for Medical Professionals.

Edited for poor sentences and to add link.
« Last Edit: July 13, 2017, 07:12:48 AM by Heroes821 »

Dicey

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Re: Jewelry insurance. Is it ever worth it?
« Reply #10 on: July 13, 2017, 07:51:25 AM »
1. The loss of this jewelry would be an emotional loss, not a financial hardship.

2. Jewelry rarely sells for what it's "worth" on the secondary market, so 20k may not be a real world number.

3. Insurance proceeds could never replace the emotional loss.

4. Mustachians to not insure against emotional loss.

FIence!

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Re: Jewelry insurance. Is it ever worth it?
« Reply #11 on: July 14, 2017, 12:10:24 PM »
Your homeowners or renters insurance usually covers this. I would check.

Homeowners insurance is probably capped at something like $1k or maybe $1,500- without a separate rider. Jewelry and furs are often not covered by homeowners insurance beyond a very small amount.

iris lily

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Re: Jewelry insurance. Is it ever worth it?
« Reply #12 on: July 14, 2017, 08:01:33 PM »
Your homeowners or renters insurance usually covers this. I would check.

Homeowners insurance is probably capped at something like $1k or maybe $1,500- without a separate rider. Jewelry and furs are often not covered by homeowners insurance beyond a very small amount.
exactly.

Lepetitange3

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Re: Jewelry insurance. Is it ever worth it?
« Reply #13 on: July 15, 2017, 08:25:40 AM »
Dicey has it that jewelry is rarely worth what it's valued for and insurance companies are tricky on the jewelry policy.  I had a policy that I used once and got rid of after that because I have heirloom jewlery.  A stone fell out of an heirloom ring setting.  Despite the high valuations we had in hand, the policy only paid out what an "equivalent" stone could be had for on the open market, and then a fixed additional cost for the jeweler to reset said stone.  Not surprisingly, this all came in at a fraction of the valuation.  Long story short, if you have a decent savings and retirement  account, you're better pocketing and investing this money, and assuring wife if something happens, you will make it right however she wants it made right.

Polaria

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Re: Jewelry insurance. Is it ever worth it?
« Reply #14 on: July 15, 2017, 11:22:41 AM »
Despite the high valuations we had in hand, the policy only paid out what an "equivalent" stone could be had for on the open market, and then a fixed additional cost for the jeweler to reset said stone.

I totally agree with Dicey's approach about jewelry insurance.

The general purpose of insurance is purely to repair the incurred damage, in your case the repair is the replacement of the lost stone. Out of curiosity, what were you expecting the insurance company would pay out?

It is the same as with car insurance. If your beater is totaled and insured, the company will only pay out the amount needed to replace your beater by the exact same beater, not to allow you to buy a brand new car.

I can't help thinking that jewelry valuation is not far of being a scam.
« Last Edit: July 15, 2017, 11:29:41 AM by Polaria »

Spork

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Re: Jewelry insurance. Is it ever worth it?
« Reply #15 on: July 15, 2017, 11:38:47 AM »
1. The loss of this jewelry would be an emotional loss, not a financial hardship.

2. Jewelry rarely sells for what it's "worth" on the secondary market, so 20k may not be a real world number.

3. Insurance proceeds could never replace the emotional loss.

4. Mustachians to not insure against emotional loss.

I was pretty much going to say this ^^^^

We insured my wife's engagement ring for years before these concepts really sunk in.  We finally dropped it after paying into it for ... I dunno ... 15 years or more.  I suspect if it were lost or stolen, it wouldn't be replaced... or if it was, it would be replaced with something totally different (and probably less expensive).   When we got engaged I struggled with that whole "how much is the right amount to spend" thing.  In retrospect, I think we'd both have gone cheaper.

slowsynapse

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Re: Jewelry insurance. Is it ever worth it?
« Reply #16 on: July 15, 2017, 12:04:23 PM »
Does your wife wear her jewelry often?  If not, have you considered a small home safe that you can also put important documents into?  I think these offer a lot of protection from theft and fire and have a dual use.