questions for those in the insurance business and those that deal a lot with them.

[strmrdr]

Some of these have been answered elsewhere but I havent seen them all in one place for handy reference.

What can we as consumers do to make the claims process as painless as possible?

What do you recomend as far as the level of documentation needed?

What are the most common mistakes you see?

How big a problem is fraud when it comes to jewlery insurance?

If a consumer files a claim on a lost/stolen ring then it turns up what should the consumer do?

What should consumers look for in a jewlery policy?

Any funny stories to share? :}

 

[Maxine]

Thanks for posting this.....I am still calling around, trying to make a decision...for now have coverage through homeowners.
But would like to have all of the options available...like what do they do when there is breakage?
Do they let you select the replacement item?

 

[oldminer]

What can we as consumers do to make the claims process as painless as possible?
Keep their documentation safe and separate from their jewelry and in a safe place. Don''t panic. Report losses immediately.
What do you recomend as far as the level of documentation needed?
Whatever papers you received that show quality, weight, shape and description are those of importance. Photos are way better than drawings.
What are the most common mistakes you see?
The false belief that an insurance company will simply write you a check for the retail value. Unless you have Cash Value coverage, which is only written by a few companies and in a few areas, you will get like-kind replacements. Do not expect DEPLICATES, but you should expect similar replacements and sufficient value up to the level of your coverage. It is a SETTLEMENT that you are going to receive, and you will not be made totally whole. No insurance company can return sentimental value to you. That is lost forever if a piece is gone...No coverage handles feelings.
How big a problem is fraud when it comes to jewlery insurance?
It is a problem, I suppose, but I don''t have a way to measure it. Get caught, go to jail. If you want to lose your self-respect, the respect of family and friends, lie under oath and get caught up in the legal system. No way!!!! Make your own bed and sleep in it, if you get caught.
If a consumer files a claim on a lost/stolen ring then it turns up what should the consumer do?
Notify their insurance agent or company. The property is yours if you have not taken a replacement for it. The claim will be dropped. If you have taken a replacement, the found item really is the property of the insurance company. They may agree to allow you to keep your old item or they may want it and let you keep the replacement. I have never seen anyone mistreated by their insurance company for being honest. DO NOT KEEP PROPERTY that was represented as missing to an insurance company and then found. It is not yours if you have accepted a replacement or a cash settlement. It is illegal to conceal that you found the jewelry.


That''s some of the answers peple might want or need to see.

 

[claimsjeff]

Mr. Atlas did an excellent job addressing your questions above. Here are a few additional thoughts:

There is a difference between a jeweler/manufacturer/designer, etc. "warranty" of a product versus and insurance policy. Thus, you need to read both very carefully.

I will address a few misunderstandings about fraud. It is a felony in all 50 states to commit an insurance fraud. Some insurance fraud bureaus are more focused on certain types of insurance frauds then others (ie...auto and workers comp are the big ones). Most insurers share property and injury loss information to a centralized database with basic information that does not violate privacy laws. Thus, we know if and individual has reported multiple losses to various insurers over the years.

I would recommend making a decision if you want to insure your jewlery on your homeowners or a stand alone policy BUT NOT BOTH. You can''t double dip.....even though you may be paying premium for both policies...both have language limiting your collection due to other insurance.

Cash policies versus replacement.....tough issue. I agree with David Atlas that no insurance can pay for the loss of sentimental value. There are many items that can be replaced with the same cut, color, clarity, and carat wt if it''s a stone. Thus, assuming you don''t have a unique one of a kind or difficult to replace item and you still want to have the same item it makes sense to go with replacement. If the item is very unique or impossible to replace then obviously the cash pay out is the way to go. To be honest, there are many more fraudulent claims submitted under a cash policy then a replacement policy. If you think about it....if a crook has a replacement policy and they ultimately want cash...they will now have to turn around and sell the replacement (a lot more work involved). Also, keep in mind that insurers aggressively pursue all types of fraud but some still make it through. These fraudulent costs increase an insurers losses which are subsequently passed on to policyholders in increased premiums.

Crazy stories...there are a lot of them...take a look at the non-profit Jewelers Security Alliance website(similiar to the Americas Most Wanted Website) on jewelry thieves. We recently had a commercial thief caught in Texas who had swallowed several of the diamonds that he took. The police verified this through an x-ray. Let''s just say the diamonds were later recovered.....interested in buying(just kidding).

Thanks-
Jeff Mills, SCLA
Vice President Claims
Jewelers Mutual Insurance Company