insuring ring with Jewelers Mutual? Chubb wont insure

[Rod]

For whatever it's worth here's a link to a thread I started about the insurance I purchased for our rings.

https://www.pricescope.com/community/threads/insurance-anyone-have-any-experience-with-gemshield.43166/=

Sorry, but I'm not good at attaching things, so you may need to copy this into your browser, but I wound up with GemShield (www.gemshield.com). The price was very reasonable, but it's "Like" replacement, not just a check if you have a claim. Since I had my rings custom made and would go back to the same jeweler to have them remade if they were lost, stolen or damaged, the Like replacement coverage is just fine with me.

It was super easy to get the policy. Print off the enrollment form. Determine the price and deductible if you want a deductible. Send a check and in a matter of days, an executed policy shows up in your mailbox. I had the firm checked out and they are in good standing.

Anyway, if this helps you, great. If not, good luck to you...........

ps: edit: I checked it out and my link works!!!! Wonders do happen!!!!!

 

[ChargerGrrl]

Date: 5/12/2006 11:46:52 AM
Author: going2bbroke
Thanks again for all the great information. I''m happy to see that a lot of other people are taking advantage of this post.
I guess its more expensive here in southern California (L.A. county). As i originally said, my homeowners insurance was outrages. $5.35 per every $100. Chubbs. both Bill and Mike quoted me at $3.13 per every $100. I wish i could find something around $2.00 per every $100. well i think i made my decision. Even though my ring appraised at 18K. i know i can easily buy it again for way way way less! so i will insure it for less then the 18K. i will probably bring it down to around 14K. this way my monthly/yearly fee wont be outrageous.

G@BB

This is in line with what I pay for my Chubb policy thru Bill Castro. L.A rates are ridiculous (I live in Redondo Beach). It sucks that there''s such a huge price difference between N & S Cal. When I saw Mara''s post that her rate is $2/$100, I thought "I wish!"

Oh yes, I too insured it for thousands less than the appraisal. It just makes sense!

 

[denverappraiser]

Replacement type policies are a quite reasonable solution if you have a sensible appraisal.

In the case of every company I know of, the standard replacement policy offers an option of cash out and that the amount they will pay is based on their estimated cost to provide replacement. This doesn’t strike me as all that bad a scenario especially for internet type shoppers who are buying at prices comparable to or less than what the company pays….

When a covered loss occurs, the typical approach is for the adjuster to refer the client to a list of replacement jewelers in the area. This list is the result of an advance negotiation between the company and the jewelers and the jewelers agree to sell on a discounted program. It’s a pretty competitive exercise to get onto these lists. The deal takes place in the jewelers showroom and usually the jeweler will be supplying, all materials, all labor, and will be responsible for all warranty issues although in the case of big diamonds and possibly other high value components, the company will sometimes supply parts from a 3rd party source that will give it to them cheaper. The jewelers take a beating on their margins because the insurance companies are big repeat customers, and they want the business, but this is no free service. The Insurers COULD dropship a package from some central factory somewhere and probably save a few bucks but the clients simply wouldn’t stand for it. Whether they like it or not, the retailer, and his markup, is part of the replacement process. I mention this because it’s really quite common for people to buy things from the PS dealers for less than the insurance companies are expecting to pay to replace and for less than the companies would cash out the claim for.

What about people who buy specialized designer goods, like one of the house brand diamonds or a designer mounting? Won’t they get replaced with crap? No. Not if you get a reasonable appraisal. The description in the appraisal will be used as a purchase order for the replacement. This includes h&A patterning, brilliancescope results, idealscope image and anything else you want to include that you can support with facts. An ACA stone mounted in a Leon Merge ring that is appraised as such MUST be replaced with a comparable ACA stone in a comparable Merge ring, you must agree to accept something else as a substitute, or they must pay in cash whatever it would cost them to buy a genuine ACA and a genuine Merge. There’s only one vendor of genuine ACA’s, so if that’s what you want and that’s where you got it, that’s where they need to make the replacement unless YOU agree to something else. The same is true with the designer of the ring. It’s even true of your dealer extended warranty and tradeup program if it’s still in force at the time of the loss. If it’s in the appraisal and you insist on it, they have to do it.

What would make a replacement policy better than a cash policy? Money. The Chubb policies I’ve come across are double to triple the price of a superficially similar JM policy. As has been demonstrated above, address makes a big difference in the premiums and the companies don’t all use the same rules so it helps to pay attention. Dollar for dollar I agree that Chubb has a better program. At 3:1 I’m far less convinced.

Why buy a ring for $3k and insure it for $20k? If it’s REALLY a $20k ring and you got a smoking bargain, the insurance companies will have no problem cashing out at full value, as long as the appraisal supports the claim. One alternative reason is to defraud the company. Buy it – lose it – buy another one, pocket the difference. This is a felony in most states and I don’t recommend it. Lastly it could be because you and the selling jeweler want you to believe that you got a great bargain and you don’t want to face the facts. That’s ok I suppose, but it doesn’t surprise me that the insurance companies aren’t anxious to buy into it. This is the reason for this whole goofy system in the first place. If you buy for $3k, insure for $3k and file a claim for $3k in the case of a loss, everyone wins. Is it really so bad if the insurance company gets a discount because they’re a high volume customer?

Can’t they replace with anything they want? NO. They must meet the specs you set down in the appraisal. A Picasso must be replaced by a Picasso. A Mark Morrell with a Mark Morrell. It makes no difference if they have an alternative artisan who they think is just as good unless they can get you to agree to it. The only alternative they have is to pay cash for the face value or to prove that they can get it for less.

About that inflation adjustment. Chubb will pay up to 50% more than the face value if the market value is higher. ‘Market Value’ means their cost to replace! I agree that this is kind of a nice feature but it’s also what’s built into the standard replacement system. The company may not get as big a discount as they expected. Tough. If the market value, meaning their cost to replace, is less than the face value of the policy they have to do it or cash out, even if the difference is only one dollar.

You don''t need an appraisal. It''s true. If the only benefit you get from your appraisal is that it allows you to comply with the insurance company rules than you don''t need one if you go with Chubb. The discount alternatives to appraisals can be risky with the replacement type policies and the tradeoff may not be obvious until it''s too late.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[Sparkles22]

Thank you Denverappraiser that was helpful! I think it''s important to get an appraisal done, it''s almost like "proof" you have what you have and that it''s worth "X" amount.

 

[londonblue]

wow, some excellent information in this thread!

I was wondering if there are any other considerations when the ring I''d like to insure is a colored sapphire. Since my sapphire only comes w/ an agl cert with its weight, dimensions, shape, that its untreated and no information or description about its exact color, would a cash out policy like chubb make more sense to me?

Or would an appraisal I get for the ring include a GIA type spec (eg. b5/5) for the color of the gemstone. Because color is such an important consideration in what we chose and what the price of a sapphire runs, the last thing I would want would be a replacement stone that''s a color we woulnd''t choose.

I''m still not sure how easy square cushion cut untreated sapphires are to find and I would definitely prefer to choose the replacement myself than possibly wait several months for some company to attempt to hunt one down sight unseen.

For those of you who have recently insured through Chubb, what is their policy on damage to a ring? For example, a chipped stone, a lost melee, or something on the ring that requires some sort of repair work. Do they pay for the cost of repairs? possibly including the cost of shipping to the original jeweler?

thanks!

 

[RockDoc]

Date: 6/2/2006 9:28:10 PM
Author: londonblue
wow, some excellent information in this thread!

I was wondering if there are any other considerations when the ring I''d like to insure is a colored sapphire. Since my sapphire only comes w/ an agl cert with its weight, dimensions, shape, that its untreated and no information or description about its exact color, would a cash out policy like chubb make more sense to me?

Or would an appraisal I get for the ring include a GIA type spec (eg. b5/5) for the color of the gemstone. Because color is such an important consideration in what we chose and what the price of a sapphire runs, the last thing I would want would be a replacement stone that''s a color we woulnd''t choose.

I''m still not sure how easy square cushion cut untreated sapphires are to find and I would definitely prefer to choose the replacement myself than possibly wait several months for some company to attempt to hunt one down sight unseen.

For those of you who have recently insured through Chubb, what is their policy on damage to a ring? For example, a chipped stone, a lost melee, or something on the ring that requires some sort of repair work. Do they pay for the cost of repairs? possibly including the cost of shipping to the original jeweler?

thanks!

The standalone jewelry policy from Chubb requires that you insure and engagement ring. After the engagement ring is insured you can add other items to the standalone type policy they offer.

If the sapphire is the center stone in an engagement ring, and it does have a recognized gem report, I would imagine that they would cover it.

As far as repairs, I am guessing here - but since it is an "all risk" type policy, I believe that it would be covered for most types of claim. However cost of wear and tear type maintence costs might not be covered. Ask the agent for a copy of the policy and review it, which will provide you with the answers to your questions, as to what is covered and what is not.

As for the completeness of the sapphire grading report : Does it state if the stone has been treated? Does it state the origin of the stone? I think these are very important facts to know and to have presented to the insurance company.
If your stone is Ceylon COLOR and ORIGIN, that would be a more costly stone than a CEYLON COLOR but with a different origin. Origin and Origin of Color are different terminologies with different meanings and values/costs.

Hope this helps.

Rockdoc

 

[londonblue]

thanks RockDoc!

yes, the ring would be an engagement ring. That''s interesting to know that chubb requires the first ring to be an engagement ring.

oops, I made a mistake on the report, it''s actually an Agta report.
The link to the stone and report is here.
It only provides the following info:
Color: blue
Transparency: transparent
weight: 1.14
dimensions: 5.71x5.57x3.82
shape: cushion
cut: mixed, brilliant crown
enhancement: no indications of heating, NTE
species: natural corundum
variety: natural sapphire

No origin specified.
not much to go on I would imagine for a replacement type policy right?
Just about every sapphire out can be called blue and transparent

The stone is currently being set in a custom platinum halo setting.