Jewelers Mutual Claims Handling

[Ice Ice Baby]

I got engaged this past X-mas Eve, and thanks to this forum and its participants, I made a pretty educated buy (2.25/H/SI2/"ideal"...antique white gold setting) which my fiancee absolutely loves. We''ve been shopping for insurance since then and it looks like we''re going to go with Jewelers Mutual (CHUBB''s premium was 3X as high; and the home insurer would only cover up to $10,000).

Based on my research, it appears that JM offers "replacement" insurance, which I thought meant that they had to try to replace the jewelry with ''like kind'' and if they could not, then they would cash out but at the price that it costs them to replace it. A jeweler recently told me, however, that JM decides at the time of your claim whether it will be replacing or cashing out (and of course it chooses what''s cheapest for them) without having to make an effort to actually replace the jewelry. This concerns me because I would expect that its always cheaper for JM to cash out at the rates it pays; and, unlike most people, I''m not necessarily trying to get a cash-out...I''d just want the ring back.

Before the jeweler told me about JM, I figured I''d try to get the lowest appraisal (within reason though) since I''d be paying premiums on this amount and since JM was going to try to replace the stone anyway. My only concern was whether the appraisal amount is the highest that JM would ever have to come out of pocket.

So, does someone know whether JM has an obligation to use efforts to replace, or it can simply take the cheapest route it wishes to? And, if I am forced to accept a cash out, under what circumstances would that be, and should my appraisal be as high as possible in that case?

 

[sfritz]

Date: 1/20/2006 2:58:46 PM
Author:Ice Ice Baby
I got engaged this past X-mas Eve, and thanks to this forum and its participants, I made a pretty educated buy (2.25/H/SI2/'ideal'...antique white gold setting) which my fiancee absolutely loves. We've been shopping for insurance since then and it looks like we're going to go with Jewelers Mutual (CHUBB's premium was 3X as high; and the home insurer would only cover up to $10,000).

Based on my research, it appears that JM offers 'replacement' insurance, which I thought meant that they had to try to replace the jewelry with 'like kind' and if they could not, then they would cash out but at the price that it costs them to replace it. A jeweler recently told me, however, that JM decides at the time of your claim whether it will be replacing or cashing out (and of course it chooses what's cheapest for them) without having to make an effort to actually replace the jewelry. This concerns me because I would expect that its always cheaper for JM to cash out at the rates it pays; and, unlike most people, I'm not necessarily trying to get a cash-out...I'd just want the ring back.

Before the jeweler told me about JM, I figured I'd try to get the lowest appraisal (within reason though) since I'd be paying premiums on this amount and since JM was going to try to replace the stone anyway. My only concern was whether the appraisal amount is the highest that JM would ever have to come out of pocket.

So, does someone know whether JM has an obligation to use efforts to replace, or it can simply take the cheapest route it wishes to? And, if I am forced to accept a cash out, under what circumstances would that be, and should my appraisal be as high as possible in that case?

You are correct that Jewelers Mutual provides a repair and replacement policy. With nearly a century of experience insuring jewelry, we have very little difficulty obtaining replacements of like kind and quality. With our program, you work directly with your preferred jeweler to help assure your satisfaction. Only in rare circumstances do we pay cash instead of repairing or replacing.

As far as the appraisal amount, over insuring jewelry is in no one's best interest. Since our goal is to return you to the same position you were in, your appraisal amount should be enough to cover our costs associated with replacing the ring. But be careful about underinsuring your jewelry. Because jewelry prices generally increase, you may be caught in an unfortunate situation of not having enough insurance at the time of a loss. It is important to have your jewelry periodically revalued to current replacement costs and your insurance coverage adjusted accordingly.

Sue Fritz
Jewelers Mutual Insurance Company