Thoughts on insurance: replacement policy VERSUS cash-value return policy?

If you have homeowners insurance, call you agent, you can add a "personal articles policy".  The carrier will need an appraisal.  the more detail the better.  I have mine with State Farm, they were excellent on a claim.  Diamonds lost were H & A''s.  They referred me to a couple of local jewelers for service, but when I told the claim people it was a H & A''s stone, they told me the local guy would not have it, and they cut me a check for the appraised value less my $100 deductible, so I was able to replace where I wanted.  Best of luck.

If you go with a replacement type of policy, make sure you have documentation of exactly what the stone is through the diamond cert and detailed appraisal.  Then you have something to back up what your diamond was in order to have it replaced with very like kind.

‘Like kind and quality’ is defined by the appraisal that YOU submit. This is one of the reasons that they ask you to submit the appraisal rather than hiring their own experts to evaluate things (even though the latter would probably improve the quality of information). A weak appraisal benefits them. The most important part of the appraisal in terms of insurance is the description, not the value conclusion, precisely because this is what becomes the standard for replacement. It should list everything that you want to be considered come replacement time including weights, manufacturer names, part numbers, certificate numbers (and scans), photographs, H&A and reflector images, etc. If it was important to you when you were shopping, it should be included in the appraisal. The value conclusion is used to set the premium. This is the maximum amount that the company will pay to exact replacement according to the description provided. If they can get it cheaper they will so it doesn’t benefit you to have an inflated appraisal. Done well and backed by a well written appraisal, you’re right that insurance is usually significantly cheaper with a replacement policy but if you provide a weak appraisal you can easily lose your advantage by getting worse coverage for a higher price.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Wow, so helpful Neil!