Hypothetical Senario Regarding Insurance and Upgrade Policies

[goldenstar]

I was reading the upgrade policy for the center stone I have and a senario popped into mind.

The upgrade policy states that the trade in stone has to be in its original condition. Suppose the stone got irreparably damaged, but it was insured so I obtained a replacement. What happens to the upgrade policy since the original stone is now a pile of dust (hypothetically

)?

This is what I think is the answer: The policy dies with the stone, so to speak. Therefore, I should make sure that the replacement is covered by an upgrade policy itself so that while the original is gone I can start anew with the replacement. Does it matter that the insurance company paid for the stone as opposed to me buying it?

This might be a silly question but I was wondering how it would play out.

 

[neatfreak]

I would call your vendor and ask. It''s a good question.

 

[WinkHPD]

I can not answer for others, but I know if you purchased the replacement stone through us that the upgrade policy would be the same no matter who pays the bill. I suspect that the other vendors will be the same, but they will have to answer.

Wink

 

[denverappraiser]

It’s a good question and I’ve fought with insurance companies over this. The answer, like all such things is, it depends. It depends on the details of your policy and on what it says in your appraisal. I know it sounds self serving when I write it but your insurance is FAR more valuable if you start with a proper appraisal.

The company is required to replace with ‘like kind and quality’ and the definition of this is the description found in your appraisal. If a specific brand is identified, they must replace with that brand if possible. Trade-in programs are a function of branding. That is to say that this is a non-gemological attribute of the stone. There may be others as well. Ownership history, for example, might be a significant value characteristic for certain items. Canadian origin is another example of this same thing. Certain brands, Tiffany for example, trade at a significant premium over their competitors for no obvious gemological reason. It doesn't matter. If you lose a Tiffany piece that was properly appraised and insured, they must replace with a Tiffany piece or it's not like kind and quality.

If your appraisal doesn’t mention it, you can't count on getting it at replacement time. By the way, the reverse can also happen. The replacement company may have better tradein, warranty or other policies than your original supplier. The key is that if it’s going to be an important consideration for you at replacement time, make sure it’s mentioned in the appraisal. This is part of the reason that they ask YOU to submit the appraisal instead of hiring their own experts.

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

 

[Kissmark]

if your original ring got damanged, and you have the replacement policy from the insurance company, then you can replace it at the original vendor''s place. then the replacement stone would be covered under the same upgrade policy right? that is what i''d assume. but of course like others said call yoru vendor to find out.

 

[denverappraiser]

Date: 11/1/2007 10:26:03 PM
Author: Kissmark
if your original ring got damanged, and you have the replacement policy from the insurance company, then you can replace it at the original vendor''s place. then the replacement stone would be covered under the same upgrade policy right? that is what i''d assume. but of course like others said call yoru vendor to find out.

Only if the vendor brand is one of the specifications provided in the description. Some (actually most) of the companies are fairly cooperative in letting you shop wherever you want within some reasonable limits and will be happy to have you to get your replacement at the original store if they are available but they are not required to do so unless it’s part of the contract, meaning unless it’s part of the appraisal. There are companies, like USAA, that own their own jewelry stores and they will not approve a replacement from your original store unless it’s required by the way the appraisal is written or, of course, unless they were the original source. In these sorts of cases you would lose the trade up program as well as any remaining warranties or other ''perks'' that may be associated with the original deal.

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