Comments on: $2,000 Jewelry Exclusion = Jewelry Rider http://www.homeowners-insurance-guide.com/2000-jewelry-exclusion-jewelry-rider.htm All you want to know about renter's and homeowner's insurance. Thu, 29 Oct 2009 02:03:21 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Gooey Debt http://www.homeowners-insurance-guide.com/2000-jewelry-exclusion-jewelry-rider.htm/comment-page-1#comment-327 Gooey Debt Sat, 17 Feb 2007 08:17:51 +0000 http://www.homeowners-insurance-guide.com/2000-jewelry-exclusion-jewelry-rider.htm#comment-327 One, ok maybe a couple points to add to your comments. First, the reason to get something appraised is to get an accurate assessment on the item's worth. Any jeweler will more than likely provide you an appraisal for jewelry, but it does not mean that the jeweler is qualified to do an appraisal or will give you an accurate insurance value. You can pay $5 for an appraisal or get one for free, but that will cost you in the long run in terms of higher insurance premiums. The idea is not to pay higher premiums than is necessary. Since high value items require a special rider in order to cover its value, you will be paying additional premium on the scheduled item(s). Look to see that the jeweler is at least part of one of the appraisal groups for jewelers. Ensure the person appraising is the one who is a member. Ensure the person appraising is qualified to appraise the item you want appraised--that is, the person may be an appraiser for diamonds but not for pearls. A good appraiser, one who is affiliated with one of the appraisal groups, is certified for the specific item being appraised, etc, will cost $100-$250 per hour. A typical solitary diamond ring will normally take about one to one and a half hours to appraise. You might think this is high, but compare it to paying more on insurance premiums than is necessary. Second, insurance companies have the choice of replacing the jewelry themselves or having you do it (you should check out your policy's fine print). If they have you do it, they may send you to an established business they normally do business with and can get discounts with. It's the same as your auto insurance company sending you some place specific. The problem is that the insurance company may evaluate the ring below what you got it appraised. Again, back to point one. It may give you a warm fuzzy that you paid $5k for a diamond ring and had any jeweler appraise it for $8k; however, the insurance company's valuation may only be $4k. That means you are paying extra premium on $4k ($8k appraised value-$4k insurance company value), because you probably insured the ring for the $8k. Insurance companies, since they handle lots of claims, have est. sellers which, since the insurance company can buy in bulk, will give them lower prices than what normal joes like us can buy the item for. This is again why you need an accurate assessment. Do not be disappointed when you get your ring appraised, that it may in fact be appraised lower than what you paid for the item. Third, each insurance company is different. So check out their policies in fine print. Fourth, if you have significant amount of jewelry to insure, you might opt for a company that deals with only jewelry, like Jeweler's Mutual etc. Your home owner's insurance company may drop you if you have high claims like on jewelry, so having separate insurance specifically for them away from your home owner's policy may be a good idea for you. Last, check to see if your policy is actual replacement cost (ARC) versus actual cash value (ACV). If ACV, you might see if your insurance company offers ARC, since ACV is depreciated value. One, ok maybe a couple points to add to your comments.

First, the reason to get something appraised is to get an accurate assessment on the item’s worth. Any jeweler will more than likely provide you an appraisal for jewelry, but it does not mean that the jeweler is qualified to do an appraisal or will give you an accurate insurance value. You can pay $5 for an appraisal or get one for free, but that will cost you in the long run in terms of higher insurance premiums. The idea is not to pay higher premiums than is necessary. Since high value items require a special rider in order to cover its value, you will be paying additional premium on the scheduled item(s).

Look to see that the jeweler is at least part of one of the appraisal groups for jewelers. Ensure the person appraising is the one who is a member. Ensure the person appraising is qualified to appraise the item you want appraised–that is, the person may be an appraiser for diamonds but not for pearls. A good appraiser, one who is affiliated with one of the appraisal groups, is certified for the specific item being appraised, etc, will cost $100-$250 per hour. A typical solitary diamond ring will normally take about one to one and a half hours to appraise. You might think this is high, but compare it to paying more on insurance premiums than is necessary.

Second, insurance companies have the choice of replacing the jewelry themselves or having you do it (you should check out your policy’s fine print). If they have you do it, they may send you to an established business they normally do business with and can get discounts with. It’s the same as your auto insurance company sending you some place specific. The problem is that the insurance company may evaluate the ring below what you got it appraised. Again, back to point one. It may give you a warm fuzzy that you paid $5k for a diamond ring and had any jeweler appraise it for $8k; however, the insurance company’s valuation may only be $4k. That means you are paying extra premium on $4k ($8k appraised value-$4k insurance company value), because you probably insured the ring for the $8k. Insurance companies, since they handle lots of claims, have est. sellers which, since the insurance company can buy in bulk, will give them lower prices than what normal joes like us can buy the item for. This is again why you need an accurate assessment. Do not be disappointed when you get your ring appraised, that it may in fact be appraised lower than what you paid for the item.

Third, each insurance company is different. So check out their policies in fine print.

Fourth, if you have significant amount of jewelry to insure, you might opt for a company that deals with only jewelry, like Jeweler’s Mutual etc. Your home owner’s insurance company may drop you if you have high claims like on jewelry, so having separate insurance specifically for them away from your home owner’s policy may be a good idea for you.

Last, check to see if your policy is actual replacement cost (ARC) versus actual cash value (ACV). If ACV, you might see if your insurance company offers ARC, since ACV is depreciated value.

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