Insurance Claim Negotiation

[aldow]

I have Allstate and the ring is insured for 12,300.00. I paid around 8,000.00. They are in the process of coming up with the value and they said they will go to the jeweler and get a price for the exact same ring and that is the amount that I will get. I don't know how to proceed.. how do I negotiate the most settlement.I will not be able to replace the ring for what I paid.

Thanks for all your help,

 

[Texas Leaguer]

You should refer to the policy itself for the details, but typically the insurance company will be obligated to replace with 'like kind and quality'. So as long as the item they present as a replacement is such, then it doesn't really matter what you paid or the value on an appraisal (if that is where the $12,300 figure is coming from). The important thing is that the documentation submitted to the insurance company was detailed enough to ensure that a proposed replacement is in fact of like kind and quality.

There are some world class appraisers who frequent this forum. Perhaps one will come in and give you specific advise. @denverappraiser @oldminer

 

[denverappraiser]

They are not agreeing to a cash settlement (as mentioned by Texas above, this will be spelled out in the policy itself), they are offering to replace the ring and they are asking the exact same jeweler for the price to replace the ring. Presumably, they believe they CAN replace it and maybe they can. What about that are you unhappy with?

 

[OoohShiny]

It is this situation that highlights how it is very important that insurance companies are furnished with all relevant information in terms of diamond and setting quality!

For example, if one has a Victor Canera hand-forged masterpiece with a centre SuperIdeal stone from CBI or WF or BG and side-stone tapered baguettes cut to perfectly match it, an insurer-sourced replacement with a poorly-cut GIA XXX and a stock Stuller setting would definitely NOT be of 'like kind and quality'... but if one has not provided the documentation from VC and CBI/WF/BG to the insurance company, they might just have '3-stone platinum ring, G, VS2, 1.5ctw' on their records and think that is all they need to provide!

 

[aldow]

i would be perfectly happy with the same ring and the exact same stone.. i looked long and hard for it, but what if the stone isn't exactly what I wanted and just similar.. I would prefer a check so that I can shop around..I am much more educated then I was before.. and didn't know if there were ways to get the cash settlement increased becuase I don't think I could replace the ring for what I paid and I have grown weary of my jeweler and would like a "do over" so to speak. losing the ring was traumatic, I am trying to see a silver lining and get something maybe even better

 

[OoohShiny]

i would be perfectly happy with the same ring and the exact same stone.. i looked long and hard for it, but what if the stone isn't exactly what I wanted and just similar.. I would prefer a check so that I can shop around..I am much more educated then I was before.. and didn't know if there were ways to get the cash settlement increased becuase I don't think I could replace the ring for what I paid and I have grown weary of my jeweler and would like a "do over" so to speak. losing the ring was traumatic, I am trying to see a silver lining and get something maybe even better

What are your Ts&Cs in your insurance small print?

Are you tied to the one jeweler they are putting forward?

Or can you provide another option to them, provided it comes in at a budget acceptable to them?


If you can only work with their one jeweller, you should ask them directly if you can source/pick the stone(s) - we can help you find some good stone options

 

[denverappraiser]

Not to sound self-serving, but get a real appraisal on future pieces. The descriptions and photographs in the appraisal report are what the company is using to define ‘like kind and quality’ for the replacement. These matter more at replacement time than the value conclusion. That’s why they want you to submit it beforehand. If there’s an attribute that’s important to you, it should be in the report. Routinely it’s not, and this is the reason they want YOU to supply the paperwork rather than just doing it themselves. Weak appraisals benefit the insurer, which is why they're happy to accept them.