Does Insurance Replacement Worry You?

[TreeScientist]

Hi everyone,
Here's a question I've been thinking about during this purchasing process. One of the things that gave me pause about purchasing an "eye clean" SI1, and one of the reasons I eventually went with a VS1 (despite just liking the stone, of course) is the appraisal and the replacement process in the unfortunate event that the diamond would be lost or stolen one day.

I know that insurance companies don't really care about the dollar amount written on the appraisal, they simply go through their wholesale sources and replace the diamond with another with similar specs in terms of the 4 C's (which is why it's silly to have a stone over-appraised and pay higher premiums). And herein lies the problem with the eye-clean SI1 or SI2 purchase, in that you or the insurance company may not find another eye clean Si1 or SI2 within their sourcing channels at the time of loss. My mom lost her first e-ring (which was high in clarity and color) and was happy with the replacement she was able to pick out, so I thought this was the more appropriate choice.

Did anyone else worry about this? I know that no-one likes to think about the possibility of losing their E-ring, but accidents do happen. I don't know if I would've wanted to drop below VS2 for that reason, as I know at the VS2/VS1 level there's plenty of eye clean stones to choose from.

 

[jen2mc]

I did a search with this exact same question! Yes- I think about that! I’m wondering if anyone has had to replace a si1 or 2 and had a positive or negative experience.

 

[Bron357]

I think it depends on your policy wording and insurer.
You want a policy where YOU can choose / source your replacement diamond (value up to the sum insured) or alternatively a cash payout meaning you also get to choose your replacement diamond.
It crucial to read and understand the “fine print” because as you said if the policy just says “replace as per valuation” you will have no guarantee the replacement SI 1 diamond will be “eye clean” as the one you lost.

 

[GolfingGreen]

Hi! It depends on your insurance company. I am with State Farm and I lost one earring. It was not a super ideal or even well cut. State Farm sent me a check for the insured value. They did not care if I used it to buy a larger earring which I did. I even asked them if it was okay to do so, and they said yes. This was a while ago though. I have several branded pieces insured as well and State Farm assured me they would cut a check for the insured value. This is recent and every now and then I do confirm with my agent again. My policy has an inflation adjustment too which makes it easier so I don’t have to resubmit appraisals too often.

Hope that helps.

 

[TreeScientist]

Very interesting responses everyone! Interesting to see this thread get interest so many weeks later.

I'm aware of the different types of insurance. I know that most companies that offer jewelry insurance as a rider on home owners plans offer replace with cash value types of coverage. My question more pertains to the "replace with like kind" policies such as JewelersMutual, which also often tend to be cheaper that the cash replacement policies.

Anyone have experience with replacing an SI1 under such policies? I personally wouldn't want to go through the hassle of doing so. Finding a stone you like is hard enough without the added hassle of worrying about eye clean at the SI1 level.

 

[WinkHPD]

If your insurance appraisal states eye clean, the insurance company MUST replace with eye clean. The better your appraisal, the easier your replacement will be.

Wink

 

[TreeScientist]

If your insurance appraisal states eye clean, the insurance company MUST replace with eye clean. The better your appraisal, the easier your replacement will be.

Wink

Yes, but "eye clean" is subjective depending on the viewer's eyes.

 

[WinkHPD]

Have your appraiser use and describe the description of your retailer. I once had a client who could see VS2 from across my desk. His wife and I could not see it without a loupe. When I wrote his appraisal, I included a definition of eye clean for a person with 20/20 vision at ten inches. I sold him a VS1 at his request, but I still made sure the definition of eye clean was part of his appraisal.

Wink

 

[rocks]

Yes, but "eye clean" is subjective depending on the viewer's eyes.

Pictures. Location and type of inclusions.

We have usaa and have had no trouble.

 

[sledge]

Have your appraiser use and describe the description of your retailer. I once had a client who could see VS2 from across my desk. His wife and I could not see it without a loupe. When I wrote his appraisal, I included a definition of eye clean for a person with 20/20 vision at ten inches. I sold him a VS1 at his request, but I still made sure the definition of eye clean was part of his appraisal.

Wink

Just out of curiosity was said customer a surgeon and/or have corrective eye surgery? People that have to deal with fine details or have had surgery tend to see more detail in all objects than the normal crowd.

I like the way you handled this.

I do agree that eye clean is subjective. I see quite a few folks define it as 10" from the top view only. You added the 20/20 vision disclaimer also. One of the WF gemologist I visited with during my diamond search suggested we set the criteria as 6" from the top & side views with perfect (aka 20/20) vision so we both knew what the term "eye clean" meant. It helped eliminate misunderstandings as I was shopping alternate vendors at the same time and also because I tend to see details others typically miss. Not sure quite as good as 'ole Eagle Eyes you had though, lol.

 

[WinkHPD]

Just out of curiosity was said customer a surgeon and/or have corrective eye surgery? People that have to deal with fine details or have had surgery tend to see more detail in all objects than the normal crowd.

I like the way you handled this.

I do agree that eye clean is subjective. I see quite a few folks define it as 10" from the top view only. You added the 20/20 vision disclaimer also. One of the WF gemologist I visited with during my diamond search suggested we set the criteria as 6" from the top & side views with perfect (aka 20/20) vision so we both knew what the term "eye clean" meant. It helped eliminate misunderstandings as I was shopping alternate vendors at the same time and also because I tend to see details others typically miss. Not sure quite as good as 'ole Eagle Eyes you had though, lol.

Thank you.

For the curious, at the time this occurred I was much younger and very near sighted. My up close vision was probably at 2 to 3x and I my focal point was between four and five inches away from my eyes. I could see a LOT of things with my bare eyes that others could not, yet this young man could see the inclusion I could not see from across the desk. I tested it by putting the diamond in a pair of tweezers and looking at it under the microscope. Then I would hold it out and he would tell me exactly were it was. I would put it face down on the desk, spin it, look at it under the scope and hold it up to him and he would tell me again exactly where it was.

The good news for me was that I returned the VS2 and got him a wonderful VS1.

For his tenth anniversary he called me up. Told me he wanted another diamond and had a bigger budget. Oh, and do not bother getting a VS1. After ten years of working on tiny computer parts at Hewlett Packard his vision had deteriorated.

I am still near sighted and can still focus at three to four inches, but if I need to see something that others can't I use a loupe.

Wink

 

[Rockdiamond]

In my experience, Jewelers Mutual is heads and shoulders above "normal" policies people have.
Instead of issues regarding SI1 clarities- we've seen issues where the insurance company believes a $1500 cast halo is equivalent to a $4200 hand forged one.
There have been cases of clients that had huge policies with an insurance company, and they had a much easier time recovering on a high dollar ring.
But in general, we've found JM to be the best

 

[unsettled]

Pictures. Location and type of inclusions.

We have usaa and have had no trouble.

We have usaa too, and I have always been sort of worried that it's too good to be true that they will just give me a check for the amount of the insurance. My appraisal is older, so it's not inflated but it is still more than a "like kind" would cost in a plainish setting (like my current one). Have you ever had to file a claim on your usaa jewelry policy? I've been lucky enough to have never needed it.

 

[rockysalamander]

I don't worry a fig about clarity and interpretations of eyeclean. I do, however, worry about antique pieces where 'like kind' may be near impossible to find or my colored stones. Some of my family pieces have stones that are simply not available on the market anymore. Its less about price and more about finding something that really is a replacement when you are talking gemstones from mines that have long been exhausted. In the big picture, diamonds are simply easier than colored stones because much of the modern language around them is quite standard.

On insurance, in general...I am a huge believer in keeping your jewelry and house/car totally separate. We have USAA for nearly everything but jewelry. I stick with JM. While they are not the least expensive, they are comprehensive and I get full control over the replacement process. They've been very easy to work with on my international loss claim. I don't ever what a loss of my jewelry to have blow-back on my other insurance products. This may be different in different countries.

 

[GolfingGreen]

This is a great (and civilized) thread, and @TreeScientist thanks for starting it.

Now you all have me wondering if I should switch to JM. With State Farm, I have had two small claims (each were less than $10K). I did not have any issues with those claims, but it was also many years ago. Now that I am older, I am also blingy-er, and I just insure pieces that are a bit more pricey. My biggest fear is that I lose a piece of jewelry, State Farm pays me, but then they drop me.

With that scenario in mind, does anyone have experience on filing for a large claim with JM, and did JM drop your insurance after they paid claim?

Related, for future purchases... let's say I buy a new pair of earrings from from an online vendor who is associated with JM. Is it better that I insure this new piece with JM given the online vendor already has a relationship? Will replacement be easier?

Many thanks for any insights you can share.

 

[rocks]

We have usaa too, and I have always been sort of worried that it's too good to be true that they will just give me a check for the amount of the insurance. My appraisal is older, so it's not inflated but it is still more than a "like kind" would cost in a plainish setting (like my current one). Have you ever had to file a claim on your usaa jewelry policy? I've been lucky enough to have never needed it.

We have had three claims in 25 years. They cashed out on all three. Two odd situations.

My husband's breitling disappeared while clearing tsa. He asked where his watch was, and they looked at him like he was nuts. No time for a police report. No appraisal, and the watch was not listed separately. Tourneau had the invoice on file...16 years earlier. Usaa paid the current price of the watch, which was more than he had paid. I lost a ruby earring. Had not yet added it to the policy. I picked them up two weeks earlier. I called to find out how the umbrella portion of the policy worked. The rep asked why...I told her what happened. She said that I had a month to add a newly purchased item, and asked it I wanted to make a claim. Most recent was a lost diamond stud. GIA .85 fvs1 "ideal". The stone was old enough that it had a full report, but no crown and pavilion angles or cut information. I did have a sarin analysis. Properly insured. They asked for a current replacement estimate and wrote a check.

In our area, jewelers mutual is cheaper than usaa, but they have always treated us well.

 

[sledge]

I haven't had any claims with USAA on my insurance policies yet, so I can't comment on that. I do know for banking, they are super easy to work with and very flexible. Because of those good experiences, I would expect the USAA insurance group to respond similar.

 

[rocks]

I haven't had any claims with USAA on my insurance policies yet, so I can't comment on that. I do know for banking, they are super easy to work with and very flexible. Because of those good experiences, I would expect the USAA insurance group to respond similar.

The only issue we did have was getting them to adequately insure our NYC coop after we did a major renovation. They couldn't get their heads around the cost of replacing the interior of a "luxury" apt in NYC. To their credit, someone with a background in "luxury real estate" called me back and we worked it out.

 

[tyty333]

I've had a couple claims, over the years, with USAA.

Cant remember the year but I lost a 1/2 carat earring (no GIA/AGS). They requested I send them the other one and they matched it. It was actually a
better stone than the one I lost (more eye-clean).

Also lost a 5 stone and another 1/2 eternity type ring at the same time. I sent them the receipts from the rings and they sent me a check equal to
the value of both rings. Both rings were part of a rider on my home insurance. Only my e-ring is a separate policy that is insured for a given amount.

So, given the original questions, "Does insurance replacement worry you?", I would have to say no at this point. If I lost my pear e-ring which in my mind
might be difficult to replace I would just ask for it to be replaced with a round of certain proportions. Hopefully, they would be willing to do that.

 

[doberman]

I had a tennis bracelet stolen and a 2ct RB diamond fall out of its setting. State Farm didn't drop us or increase our rates, but we have a lot of business with them.