Jewelry Insurance - Worth it?

That is not including interest/gains on the money you could be investing. Also how hard is it to collect? Do they pay you the purchase price or replacement price? The chances of all 3 being lost at once other than being stolen should be very slim.

I always make the assumption that the insurance company will screw me so I always purchase the minimum insurance. I would decline the insurance, put some money in the bank, and be careful with all your possesions.

If you lose all 3 pieces of jewelry tomorrow then you come out ahead, if you lose them in 30 years then you need to do the math. I work in the insurance industry and I can tell you that the policy you have (personal articles policy or PAP) is the most profitable policy there is for the company. The policy might pay based on you appraisal but they really only owe based on like kind and quality which could be substantially less than your appraisal since 90% of all appraisals you get are high. You're not taking into consideration this policy pays for repairs or replacing a missing stone which is a legitimate concern. And like the other guy mentioned the chances of losing all 3 pieces is not likely but over a 30 year period it could certainly happen. Although it's profitable for the insurance company it protects you if you have a loss...the whole point of having insurance.

if it were worth it to you, insurance companies would not make a profit on this. you are making a 300 dollar a year bet that you will lose your stuff.

That 269 per year invested at 5% interest for 50 years is worth $56,314.61. Sounds like a good deal for the insurance company.

To put it a better way, by not buying the insurance you can replace the jewelry twice in the next 50 years. Whether you need to or not. If you lose it 3 times though you are screwed. They will cancel your policy before then anyway.

See if you can get it added to your homeowner's or renter's insurance. You'll pay about 1/5 that much.

If you just spent $13,365 on jewelry on your wife to be, I am going to go out on a limb and say you have a better chance of losing her over time than losing the jewelry.

To me, this is an example of something it makes no sense of buying insurance for. I am not a fan of insurance in general - thinking you are better off buying the minimum necessary for things like cars and health.

But, the big difference is for something like a car, if you wreck it, you probably will need to replace it quickly. If you don't have access to the cash to do it yourself (self-insure), then it makes sense to buy car insurance.

For something like jewelry, it is not like it is going to affect you all that much if you do lose it. I don't know why you'd buy insurance at all on it.

Or, why you'd spend that much on sparkling rocks in the first place.

Here is what I would do.

Buy insurance on the engagement ring only, and keep the insurance for 5 years.

If you lose the other stuff, you have options:

1. Wedding Ring - go buy another one for $75 and wear that one. No need to buy more than one expensive wedding band, ask anyone who has ever lost one.

2. Ear Rings - tough shit, if you cannot hold onto them, you don't need them. If they get stolen, it is covered under home.

I understand how the engagement ring is something on which you would want to have insurance, but after 5 years of marriage, your (her) priorities change a little and the $10k ring is not as big of a deal. Most women stop wearing the engagement ring anyway. It is a little cumbersome for working out, changing diapers, etc. If y'all aren't having kids and she just wants nice jewelry all the time, that is a different story.

I'd shop around for a better price on that policy. My wife chipped her diamond (floating setting)within the first year. The $50/year policy paid for a new stone to be set, thus saving me the $4k the rock cost.

Best deal ever

thats right

Considering that diamond is one of the hardest substances known, how on earth did your wife manage to chip it?