Does this insurance policy sound reasonable?

[HappyFish]

I bought insurance for my Tiffany ering through my home insurance company Liberty Mutual. I received the policy in mail yesterday.

It stated that:

"The value of the property insured is not agreed upon but will be ascertained at the time of loss or damage. We will not pay more than the least of the following amounts:

1. The actual cash value of the property at the time of loss or damage;

2. The amount for which the property could reasonably be expected to be repaired to its condition immediately prior to loss;

3.The amount for which the article could reasonably be expected to be replaced with one substantially identical to the article lost or damaged; or

4. The amount of insurance."

My concern is that if my ring did get damaged or lost, it would be replaced with a non branded diamond with similar specs instead of a Tiffany diamond with similar specs. I did call them twice before I bought the insurance through them. One agent told me that my ring would be replaced with a Tiffany ring, the other agent said that it was the amount that I insured that matters, they wouldn''t care where I would get the replacement as long as it was under or equal to the amount I insured my ring for.

Any thoughts? Should I be worried about something that may never happen?

 

[gulliverseyes]

Can I ask how much the insurance costs?

I don''t know anything about diamond insurance, but it seems pretty typical with other policies I have to give the original cost of the product or real-time value of the product to replace it. In the end, I think they''re protecting themselves for the future possibility of diamonds decreasing in value ... maybe due to increased world supply or increased popularity of man made diamonds.

Anyone?

 

[denverappraiser]

3.The amount for which the article could reasonably be expected to be replaced with one substantially identical to the article lost or damaged;

‘Substantially identical’ will be defined by the appraisal that you submit at the time you bind the policy. Make sure that the description includes any details that you would like to be considered at time of replacement, including the identity of the manufacturer. This is one of the reasons to get a professional appraisal rather than just submitting whatever the jeweler happens to give you for free along with the packing materials.

Ask your agent to explain the term 'actual cash value'. It's not what you think. For the most part it doesn't apply to jewelry claims but this stings people on claims for furniture, computers, clothing and other items that are lumped together in the category of 'personal property'.

This is very typical language. By the way, congratulations on actually reading your policy, you wouldn't believe how few people bother to do that.

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

 

[HappyFish]

Date: 12/27/2007 3:42:40 PM
Author: gulliverseyes
Can I ask how much the insurance costs?

I don''t know anything about diamond insurance, but it seems pretty typical with other policies I have to give the original cost of the product or real-time value of the product to replace it. In the end, I think they''re protecting themselves for the future possibility of diamonds decreasing in value ... maybe due to increased world supply or increased popularity of man made diamonds.

Anyone?

It is $308/year for a $20K ring. It would be $380+ with JM.

 

[HappyFish]

Date: 12/27/2007 3:54:54 PM
Author: denverappraiser
3.The amount for which the article could reasonably be expected to be replaced with one substantially identical to the article lost or damaged;

‘Substantially identical’ will be defined by the appraisal that you submit at the time you bind the policy. Make sure that the description includes any details that you would like to be considered at time of replacement, including the identity of the manufacturer. This is one of the reasons to get a professional appraisal rather than just submitting whatever the jeweler happens to give you for free along with the packing materials.

Ask your agent to explain the term ''actual cash value''. It''s not what you think. For the most part it doesn''t apply to jewelry claims but this stings people on claims for furniture, computers, clothing and other items that are lumped together in the category of ''personal property''.

This is very typical language. By the way, congratulations on actually reading your policy, you wouldn''t believe how few people bother to do that.

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

Thanks Neil. I called them up again to ask about the brand issue. The agent again claimed that "we don''t care about the brand of the ring, all we care is the amount insured." Oh, well, I give up. I am not going to worry about it anymore.

 

[gulliverseyes]

That''s a lot of money, it''d almost be worth it to pass on the insurance and buy a second setting filled with CZ to wear when you''re doing physical work or driving through a bad neighborhood

 

[denverappraiser]

Date: 12/27/2007 5:35:58 PM
Author: HappyFish

Thanks Neil. I called them up again to ask about the brand issue. The agent again claimed that 'we don't care about the brand of the ring, all we care is the amount insured.' Oh, well, I give up. I am not going to worry about it anymore.

It’s actually kind of an important issue and I wouldn’t drop it if I were you. $308/year forever is quite a bit of money. A ‘generic’ ring of similar specs is considerably less expensive than a genuine Tiffany and if you paid the price to get a Tiffany it’s only fair that they should replace with genuine Tiffany in the case of a loss.

What you’re reporting that your agent is telling you is not what the policy snippet you included above says. I presume you know that. Call up the corporate office and ask for the name and number of your regional manager. Then ask for an explanation. Give them the name of your agent while you’re at it. If it turns out that your agent is providing bad advice, consider finding another agent. Helping clients to interpret policies so that they can end up with the right one for their needs is what agents are for. They can’t do that if they don’t understand their own policies. If what the agent says is true, consider finding another company.

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