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Insurance question (Jewelers Mutual)

kbean

Rough_Rock
Joined
Apr 12, 2016
Messages
24
I purchased a diamond ring from WF for ~$7800 (Including wire discount) and when I insured it through Jewelers mutual, WF sent them a value of ~$11,500 for the ring, so that's what it is insured for.

After having the insurance policy go into effect, JM now wants a copy of my detailed receipt from WF.

My question is are they going to REALLY insure it for the $11,500 or for the $7,800?
 

Wink

Ideal_Rock
Trade
Joined
May 3, 2001
Messages
7,473
You will need to ask them about that. If WhiteFlash is able to reproduce the article of jewelry for you at $7,800 then that is the amount you want to insure it for. If it is going to cost $11,500 to reproduce the jewelry as purchased, then that is the amount you want to insure it for.

There is no reason whatsoever to pay premiums on amounts that are too high, unless you like spending extra money. The insurance from JM is a replacement value policy and they will replace the item through the jeweler of your choice, probably WhiteFlash, so if they will sell the item to JM for the $7,800 price (or lower) it makes no sense whatsoever to pay the premium on $11,500.

Wink
 

kbean

Rough_Rock
Joined
Apr 12, 2016
Messages
24
Wink|1461858526|4024625 said:
You will need to ask them about that. If WhiteFlash is able to reproduce the article of jewelry for you at $7,800 then that is the amount you want to insure it for. If it is going to cost $11,500 to reproduce the jewelry as purchased, then that is the amount you want to insure it for.

There is no reason whatsoever to pay premiums on amounts that are too high, unless you like spending extra money. The insurance from JM is a replacement value policy and they will replace the item through the jeweler of your choice, probably WhiteFlash, so if they will sell the item to JM for the $7,800 price (or lower) it makes no sense whatsoever to pay the premium on $11,500.

Wink

Yes, that's exactly what I was thinking. My first reaction was that I didn't want to send the receipt, because what I paid for the ring is meaningless. The only thing that matters is the actual value. But I guess the tricky part is determining that.

I'll have to find out the difference in the premium if I drop the value to $8k. It might not be worth it, and best just to leave it higher, in case the value increases and just to have that cushion.
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,747
What they are insuring it for is the amount that it will cost them to replace it with another of like kind and quality in the case of a loss. The bottom line is the maximum limit, which is not necessarily the amount that they will pay out in the case of a loss. Things change. Jewelers change. Prices change over time. All of this is true but, in the end, they'll pay whatever they must to replace it as of the date of a covered loss and not a penny more. If you can buy it for $7800, they probably can too so, at the moment, that's what the value of a total loss will be.
 

msop04

Ideal_Rock
Premium
Joined
Dec 3, 2011
Messages
9,777
kbean|1461859424|4024634 said:
Wink|1461858526|4024625 said:
You will need to ask them about that. If WhiteFlash is able to reproduce the article of jewelry for you at $7,800 then that is the amount you want to insure it for. If it is going to cost $11,500 to reproduce the jewelry as purchased, then that is the amount you want to insure it for.

There is no reason whatsoever to pay premiums on amounts that are too high, unless you like spending extra money. The insurance from JM is a replacement value policy and they will replace the item through the jeweler of your choice, probably WhiteFlash, so if they will sell the item to JM for the $7,800 price (or lower) it makes no sense whatsoever to pay the premium on $11,500.

Wink

Yes, that's exactly what I was thinking. My first reaction was that I didn't want to send the receipt, because what I paid for the ring is meaningless. The only thing that matters is the actual value. But I guess the tricky part is determining that.

I'll have to find out the difference in the premium if I drop the value to $8k. It might not be worth it, and best just to leave it higher, in case the value increases and just to have that cushion.
Hey kbean! :wavey:

I had a similar situation... JM had insured my ring based on the (very inflated) appraisal, and not what I had paid. It was making my premium so much that the ring would basically be paid for in about 25 years. DH wasn't cool with that, and said he'd rather just take the chance and pay some out of pocket if we ever needed to do so... So when I upgraded to my new stone, I requested that it only be insured for the amount I paid for it (actually a couple thousand less). They did request a copy of the receipt (I guess to verify what I said I had?), and they said that I could insure whatever amount I like, as long as I understood that would be the amount that I would receive in the event I needed to replace the ring.

I think it depends on your feelings toward shelling out a little extra cash, should you need to replace it in the future. I will say, however, that JM advised that it would be a good idea to check diamond prices every couple of years or so to make sure I was comfortable with the amount in which it is insured. Hope this helps! :))
 

newjourney

Rough_Rock
Joined
Aug 10, 2015
Messages
72
I am curious as to why JM asked for a detailed WF receipt. Did you call JM or go on the Perfect Circle link to request for a quote? If via the link, upon providing your WF order number there should be no need to provide a copy of your receipt as your purchase details would have been transferred to JM. I never had to send them a copy of my receipt as everything was carried out electronically.

As mentioned, you're free to select however much you want to insure your ring for with JM, so long as it's not less than the purchased price.
 

msop04

Ideal_Rock
Premium
Joined
Dec 3, 2011
Messages
9,777
denverappraiser|1461860492|4024639 said:
What they are insuring it for is the amount that it will cost them to replace it with another of like kind and quality in the case of a loss. The bottom line is the maximum limit, which is not necessarily the amount that they will pay out in the case of a loss. Things change. Jewelers change. Prices change over time. All of this is true but, in the end, they'll pay whatever they must to replace it as of the date of a covered loss and not a penny more. If you can buy it for $7800, they probably can too so, at the moment, that's what the value of a total loss will be.
I had another post with a long response, but denverappraiser's post sums up what I was trying to explain much better... :bigsmile:

This is why I wouldn't recommend insuring it for much more than is necessary to replace it. :halo:
 

msop04

Ideal_Rock
Premium
Joined
Dec 3, 2011
Messages
9,777
newjourney|1461861283|4024644 said:
I am curious as to why JM asked for a detailed WF receipt. Did you call JM or go on the Perfect Circle link to request for a quote? If via the link, upon providing your WF order number there should be no need to provide a copy of your receipt as your purchase details would have been transferred to JM. I never had to send them a copy of my receipt as everything was carried out electronically.

As mentioned, you're free to select however much you want to insure your ring for with JM, so long as it's not less than the purchased price.
I think the reason they want a detailed receipt is to show the specs of the stone/setting for verification. When I changed rings and my policy, I went on the JM/PC website first and get a quote. I was pleasantly surprised that my premium ended up being a little less than the online quote.

Regarding the last line, JM allowed me to insure my stone (stone only, as I have a simple solitaire setting) for a couple thousand less than the purchase price. Maybe I was lucky?? :halo:
 

Texas Leaguer

Ideal_Rock
Trade
Joined
Jul 27, 2009
Messages
3,191
Just a little clarification that might be helpful.

Whiteflash has an technology-based integration with Jewelers Mutual that is very convenient for many online shoppers. Jewelers Mutual has a similar integration with several other larger online merchants.

Upon making a purchase, the shopper is presented a special link to get a quote/bind coverage. Using this process, there should be no need to submit a copy of the receipt because JM has access to that information through the integration.

They apply some sort of markup algorithm to the invoice costs, based upon their knowledge of the broader market vis-a-vis their understanding of Whiteflash pricing. This sets a maximum liability for JM and allows more flexibility to replace like goods should the customer decide to source the replacement from a merchant other than Whiteflash. It also provides the customer a buffer against the possibility of rising prices for diamonds and jewelry.

As other posters have said, JM will allow the customer to choose an insurance amount as low as the invoice price. And in the integrated online process, the customer can override the algorithm generated amount and choose a lower amount.

All this pertains only to the online integrated process of insuring new items. If all or part of your merchandise was pre-owned or purchased elsewhere, there would be a need to supply JM with addtional documentation.

So, Kbean, you should not have to submit any receipts if your purchase was straight forward. And you should be able to insure it for any amount down to what you paid for it. If you have any further questions, you can call JM or call us and we will help you.
 

kbean

Rough_Rock
Joined
Apr 12, 2016
Messages
24
Thanks @ everyone for the great feedback.

I think I'll see what the premium difference is if I reduce it to $9k. I think that's enough cushion for the first year.

Will then check prices each year before I renew.
 

cinnamonstick

Brilliant_Rock
Joined
Jun 14, 2009
Messages
569
Great read! Paying an arm and leg for insurance based on an appraisal that is nearly double what I paid. It's killing me $500 a year as a floater! Doesn't include $ my other (less pricy) diamond ring....need to look into this when I have more time :(

If you find out any more information please let us know
 
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