Insurance coverage declined

[Polabowla]

Does anyone know why an insurance company (like jewlers mutual) would decline to sell someone coverage?
The person has an excellent credit score & has no prior insurance claims.

 

[Niel]

Does anyone know why an insurance company (like jewlers mutual) would decline to sell someone coverage?
The person has an excellent credit score & has no prior insurance claims.

There are a lot of factors underwriters look for when underwriting.
First - let me address the 2 reasons you listed.
1- claims. Yes that’s a factor. But also the likelihood of future claims is a factor.
2-credit. Your credit score isn’t always what Companies look at - exactly - they use the same information to determine an insurance rating score. What appears good to a credit card company doesn’t necessarily have the same weight in the formula used to determine an insurance score.

other factors that pertain to you being too risky may be where you live, where you store if, how long you’ve owned it. All can be factors.

also, all insurance companies do not have to insure your risk. Your jewelry could merely be outside of their appetite. They may not insure rings over 20k- for example. And even if it was close to the top of their appetite- most likely they have more strict underwriting for a high value ring vs a low one.

If it’s about agreed value or replacement cost policy they may not agree with the valuation provided.

 

[Polabowla]

Thanks for explaining.

So how does one get insured?

The jewelry is kept in a case in a locked room that only the owner & spouse have the code to.

Appraisal is recent.

What else can be done?

 

[Niel]

Thanks for explaining.

So how does one get insured?

The jewelry is kept in a case in a locked room that only the owner & spouse have the code to.

Appraisal is recent.

What else can be done?

Get a quote somewhere else.

 

[tyty333]

Thanks for explaining.

So how does one get insured?

The jewelry is kept in a case in a locked room that only the owner & spouse have the code to.

Appraisal is recent.

What else can be done?

Make sure the appraisal is for reasonable replacement cost and not way overblown like some appraisals?
(just taking a possible guess)

 

[Polabowla]

Make sure the appraisal is for reasonable replacement cost and not way overblown like some appraisals?
(just taking a possible guess)

The appraisal was for the purchase price

 

[Missie1]

I know with JewelersMutual they stopped allowing me to add jewelry when I hit 100k. That policy doesn’t even include my ering. I use for our watches and my bracelets.

 

[denverappraiser]

Ask them. They're pretty forthcoming. Often appraisals are an issue both in terms of the value conclusions, the format of the report itself (like is it signed, does it provide a definition of value, is the date recent enough, etc.) and the appraiser (appraisers are not fungible). Again, they should be willing to tell you if that's the problem. There may be pre-existing damage to the piece and they're declining coverage for that reason. I routinely get referrals that started with insurance companies who have problems with the paperwork.

 

[Karl_K]

Ask them, a lot of the time its some silly hoop that wasn't jumped through.

 

[Polabowla]

The person tried asking JM & was told to check with Lexus nexus who never responded to the request.
Their standard credit report is clean so again it's odd.
They asked JM for more details & was refused. JM said they do not discuss why they will not insure the piece.

It's 1 piece, well under 100k & new with no damage or other issues.

My only thought was this person did have some jewelry stolen about a dozen years ago, but didn't make an insurance claim. Idk if that would impact their getting insurance or not.

 

[denverappraiser]

JM has plenty of competitors. Move on.

Lexus Nexus is a database for lawyers. I'm not surprised they aren't talking but I'm going to bet there's more to this story or their name never would have come up.

 

[KaeKae]

Just going to throw an idea out there.

Does the person have a somewhat common name? I'm not talking John or Mary Smith, but still not an unusual name. Is it possible that when the company did whatever the company does to evaluate the potential client, that another person of that name came up, with some kind of undesirable background.
I know this sounds out there, but I know someone who has had things like this happen, when applying for a mortgage and other situations where a background or history is considered.

 

[Niel]

JM has plenty of competitors. Move on.

Lexus Nexus is a database for lawyers. I'm not surprised they aren't talking but I'm going to bet there's more to this story or their name never would have come up.

Lexus nexus is not just for lawyers.

 

[Polabowla]

Nope nothing more to this story than what I have written here, which is why we are so puzzled.
Who else besides JM insures jewelry?

Oh and no not a common name .

@Niel what exactly is lexis nexus?

Would a person's income play a part in this?

 

[Niel]

Just going to throw an idea out there.

Does the person have a somewhat common name? I'm not talking John or Mary Smith, but still not an unusual name. Is it possible that when the company did whatever the company does to evaluate the potential client, that another person of that name came up, with some kind of undesirable background.
I know this sounds out there, but I know someone who has had things like this happen, when applying for a mortgage and other situations where a background or history is considered.

This isn’t unusual in the slightest- in terms of say , Equifax, they are notorious for listing individual as deceased when say- their mom or dad died. That’s fixed by contacting Equifax.

as to the insurance company- yesthey may have a database of people they have concerns about insuring again- but those are usually resolved by seeing that the date of birth or location or other factor doesn’t match. They don’t try and throw the baby out with the bath water.

 

[Niel]

Nope nothing more to this story than what I have written here, which is why we are so puzzled.
Who else besides JM insures jewelry?

Oh and no not a common name .

@Niel what exactly is lexis nexus?

It’s a database. Holds information, say, like claims you’ve had

 

[RunningwithScissors]

Lexis Nexus can pull up your name in any publication its been in such as the local hometown newspaper too. If your friend ever committed a crime, (not saying he/she did) it would show up.

Regarding common names, that mistake happens all the time. My husband's father has a very common Latin name and it made life difficult for my husband getting clearances many years ago. Apparently more than one narco terrorist has the same name! It was a nightmare to straighten out.