Individual Item Insurance - Advice and Tips

LLDG on 14/05/2020 - 11:39
Last edited 22/05/2020 - 16:48 by 1 other user

Hi All,

Long time observer but relatively new member and active user - so be gentle :)

I have recently purchased a reasonably expensive item of jewellery (purchased $6500, valuer certificate $10,200) and would like it insured for theft and loss (ie specifically misplacing or losing it outside of the house, as this is the most likely scenario).

Do you have thoughts about individual item insurance? Advice on who to use?

Things I have been pondering / relevant details:

1. We rent a fully furnished house, therefore few other household items of value (< $5000 total replacement), so have previously not bothered home and contents insurance. Would it be better to have the jewellery insured as part of a larger H&Cs policy?

2. The gemstone is the most valuable element, do I need a policy to specify a stone falling out?

3. What considerations regarding purchase / valued amount beside premium?

Thanks in advance.

UPDATE: I ended up going through a Steadfast Broker, far superior policy for around the same price as the major providers. Ring is covered without having to be a 'named item' and a lot of other inclusions too.

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  Stewardo on 14/05/2020 - 11:43

  +2

  Shop around for contents policy for 5k value and nominate an additional Item (jewellery) for $6500

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  kanmen on 14/05/2020 - 12:02

  +1

  Congratulations on your engagement, hopefully?

  • 

    LDG on 14/05/2020 - 12:12

    Yes well picked… actually the engagement was almost a year ago now (the wedding was supposed to be last weekend!). I proposed with a $50 ring and had her involved in the design of the real ring and picked it up a few months ago, only getting around to insuring it now.

    I have some advice for anyone considering to have their fiance involved in the ring design though… be very careful about what you are getting yourself in for - all concepts of the value of money goes out the window when women are designing their own engagement ring!!! Perhaps not all women though :p

    • 

      kanmen on 14/05/2020 - 13:31

      +1

      If your fiance is specific with what they want, then I think you went about it right! I think either way some form of consultation is required, whether it be before actually proposing or after, and surely either is going to be just as costly!

      I personally, don't consider myself to be picky, however I probably have requirements I want my ring to have ie. band material, stone, size. Your pricing seems like its the average or acceptable price for an engagement ring.

      Congratulations anyway, and so sorry to hear about your wedding! Wishing you a long and joyful union!

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  tsunamisurfer on 14/05/2020 - 12:11

  +2

  I had a hell of a time with this, for an engagement ring.

  There were 2 main options.

  1) Insure the item as a standalone policy.

  I checked with jewellers and they suggested providers like Chubb. The policy they provide are comprehensive, covers the item from theft / loss inside and outside the house, in and outside of Australia.

  But for me it was so expensive ~ $800, but that was a function of the stupid valuation of the ring.

  2) Insure the item as a specified item within the contents insurance.

  This was a cheaper option as it does not losing the ring outside the house.

  I went with RAC but they made things hard. The value of the specified item must be at most 25% of the total coverage.

  Which means I had to significantly and unnecessarily bump up my overall contents coverage just to meet that criteria when I could never hope to claim even if the worst happened.

  In the end I told her to just self insure as it is way too expensive.

  The takeaway from the jewelry industry and the assessment industry I had was they value the items WAY too high.

  The item I had was estimated at about 2.5x the cost of buying and putting the ring together.

  It actually made it so that I was thinking a thief would make me $Nn,nnn by stealing it.

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  omguleh on 14/05/2020 - 12:15

  +1

  We went through the same thing, ended just not getting insurance and bought a very strong safe (dead bolted into concrete and it had an empty weight of 120kg). Wife doesn’t wear it much now and just leave it in the safe.

  • 

    Blue Cat on 14/05/2020 - 12:21

    So what was the point of getting an expensive ring to show off… if you don't show it off and just keep in the safe the whole time?

    • 

      omguleh on 14/05/2020 - 13:17

      Don’t need to show it off?

      • 

        zoob on 15/05/2020 - 09:36

        +1

        Might as well save yourself the money and not bother. It's not like you're getting any benefit from the ring if it's sitting in a safe (which you also had to spend money on).

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  Davo1111 on 14/05/2020 - 12:37

  +2

  We rent a fully furnished house, therefore few other household items of value (< $5000 total replacement), so have previously not bothered home and contents insurance.

  first, you should be insuring everything anyway. The price for contents for me is $300

  Secondly, read the PDS cover to cover. jewelry over x value need to be insured seperatly, they'll happily allow you to add it on as an additional items (and charge for it), however you need to check what it actually covers. (the price doesnt represent level or coverage).

  • 

    LDG on 14/05/2020 - 12:53

    Cheers will look into that… any further advice on H&Cs insurers or best way to compare options. I would like to avoid reading 10+ PDS's if I can

    • 

      Davo1111 on 14/05/2020 - 13:50

      +1

      realistically you're probably going to look at a few companies. I'd skip the the important bit, then when you've got the quotes and about the decide, then read the PDS in full

    • 

      Stewardo on 14/05/2020 - 16:26

      +1

      Contents insurance only. You don’t own the home.
      Put it in a comparison website.

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  Wickz on 14/05/2020 - 13:02

  +2

  I pay about $45 per month for $250k of content insurance, which includes a ring valued at $6k. (I rent but live in a 4 bedroom fully furnished house)I personally, would rather have insurance for the "oh shit" moments of life, rather than running the gamble of being without.

  This is through RACV, and my ring is listed as a Specified Portable Value, which means it is covered for loss, damage or theft inside and outside my house anywhere in Australia.

  EDIT - As previously mentioned by other, most Contents insurers will only allow you insure specified items up to a % of the total value of your contents. So you will either need to take out proper content insurance for everything in your house (don't forget how expensive it can be to replace clothing) and include the ring, or look for an insurer who will take the risk for one item. Seems a no brainer to me to just do the whole lot as it will be cheaper in the long run.

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  87percent on 14/05/2020 - 13:55

  SOME H&C doesn't include insurance if you lose it outside of your property (ie; wedding ring). I have specific items insured, and i have a safe deposit box at the bank to hold some high value items

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  Ocker on 14/05/2020 - 15:51

  Diamond ring insurance is one heck of a rip-off. You purchase the insurance for the valuation certificate amount, which in reality is a grossly inflated retail valuation. Nobody ever pays that amount for a ring, rather substantially less as OP did. In the unfortunate event you need the insurance company to replace the ring they will probably pay around 30% of the valuation amount to get a ring made.
  Regardless it is worthwhile to make sure you have a valuation that details the qualities of the diamond. Also take some photos of the ring.

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  brokenglish on 14/05/2020 - 15:54

  I would convince her to cash that jewellery and buy ETF instead.

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  Seraphin7 on 14/05/2020 - 15:56

  Speak firstly with your existing contents insurer. They will be able to provide you with guidance in the first instance, and if nothing else can provide you with cover immediately (and remember, that engagement rings in particular seem to have this habit of getting lost in the early days, ironically because people are trying to "take care" of them, but end up leaving them somewhere).

  As ever, different insurers will provide you with different arrangements so it will pay to shop around to find the type of cover you are looking for.

  • 

    SimbaGirl on 14/05/2020 - 16:19

    Speak firstly with your existing contents insurer.

    OP doesn't currently have insurance - "few other household items of value (< $5000 total replacement), so have previously not bothered home and contents insurance"

    • 

      Seraphin7 on 14/05/2020 - 18:04

      Hmmm … all the more reason to get on with it. I'd start with a "big name" insurer such as NRMA in NSW or equivalent in other states. OP should get some level of cover going now and make sure this item is covered.

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  holdenmg on 14/05/2020 - 16:35

  https://www.chubb.com/au-en/personal-insurance/valuable-arti… offers stand alone cover via a Broker.

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  blwnhr on 15/05/2020 - 09:29

  +3

  I have an expensive collection of camera equipment. Nearly all direct insurers (you call them, they give you cover) cap the limit of single items or "collections" (my camera gear is in a single bag, therefore a collection).

  We found that going through a broker and purchasing a Steadfast policy with accidental damage extension there is no need to list individual items or collections. Accidental damage offers accidental coverage (obviously) but also covers items outside the home, extends coverage for expensive single items etc. When we got engaged we called to confirm we didn't need to get the ring noted ($8k value) and were advised not. Basically you pick an insured amount for all your stuff, say $5k + $10k ring = $15k. There is no limit on an individual item/collection provided the total claim does not exceed the insured value ($15k). This also offers a level of protection if the value increases but you haven't adjusted your cover.

  List of Steadfast brokers here: https://www.steadfast.com.au/find-an-insurance-broker
  The insurer may vary (CGU, Berkshire etc.) but Steadfst dictate the cover and the insurer has to agree.
  Not affiliated with them, just been happy with the cover for the last 15 years. Had our house broken into in 2010, stole $20k of camera gear, clothes, laptops, games consoles, tools, a car etc. and had no problems with limits or coverage.