Jeweler''s Mutual vs Chubb Insurance

[Asharus]

I know this topic has been covered, however I wanted a quick opinion. The annual premium for $10,950, 0 deductible in my area is $171 from JM and $246 from Chubb. I''m leaning towards the extra peace of mind that Chubb offers for the extra $75. Which one would you go with?

 

[Skippy123]

What is the extra piece of mind, just curious??

 

[Asharus]

Skippy, the hassle free cash payout is what I''m referring to. I put a lot of time searching for the right diamond, and I don''t want them to replace it with an "equivalent" piece.

 

[ChargerGrrl]

i think you just answered your own question!

 

[Asharus]

Yeah, I think I''m going to go with Chubb, but I wanted to check with you guys. What would you do?

 

[HappyFish]

I am trying to figure out which insurance company to go with too.

My question is what replacement value means. Let's say you have a 10K ring from Catier, and it gets lost or chipped. Does replacement value mean you can buy the same quality ring in a less expensive store, say $7K, or does it mean you can go back to Catier and buy the same quality ring or same price ring?

Any experts out there who could answer my confusing question?

 

[Asharus]

From what I gathered, "replacement" means they will "replace" your ring with an equivalent stone. For example if your appraisal states 1ct, H color, VS1, excellent cut, they will replace it with a diamond that meet those criteria. So make sure your appraisal includes table%, crown angle, etc. if you want them to match that with their "replacement" as well.

 

[Sparkalicious]

Date: 12/6/2007 3:43:25 PM
Author: Asharus
From what I gathered, ''replacement'' means they will ''replace'' your ring with an equivalent stone. For example if your appraisal states 1ct, H color, VS1, excellent cut, they will replace it with a diamond that meet those criteria. So make sure your appraisal includes table%, crown angle, etc. if you want them to match that with their ''replacement'' as well.

Asharus,

Thanks so much for sharing. This is really valuable information. I''m pretty sure that I will be looking to insure a new ring soon and I would like to ensure that all my t''s are crossed and i''s dotted. Considering I have limited experience with this type of insurance, it''s really great to be able to helpful tips like this.

Thanks!

 

[HappyFish]

Date: 12/6/2007 3:43:25 PM
Author: Asharus
From what I gathered, ''replacement'' means they will ''replace'' your ring with an equivalent stone. For example if your appraisal states 1ct, H color, VS1, excellent cut, they will replace it with a diamond that meet those criteria. So make sure your appraisal includes table%, crown angle, etc. if you want them to match that with their ''replacement'' as well.

Are you saying that they can''t match the brand of the ring? That''s not good.

 

[Thinking_about_it]

I actually work in the insurance industry so can shed some light...

It is basically an issue of replacement cost, actual cash value, or replacing with an item of like kind and quality. The best option is replacement cost as this will account for market fluctuations (i.e. price appreciation). Of course, this is priced into their rate they charge.

Jewelers Mutual is a mutual insurance company which means policyholders can receive a dividend if the ratio of losses and expenses to premium paid out in a given year is less than one. For a $200 or so policy this wouldn't amount to much.

Chubb is known as the "Cadillac" of coverage...but a lot of this is their own marketing.

Main thing for an apples to apples comparison is how they indemnify you, as mentioned above. Also look at their AM Best rating. Neither would be an issue for these companies as Chubb is highly rated and Jewelers Mutual doesn't write any catastrophe prone or long tailed liability business.

The attraction of insuring expensive jewelery to an insurer is that people watch it and value it closely...they are not likely to be as careless as they are with other things (car). This creates fewer losses.

Hope this helps.

 

[Meloniee]

Date: 12/6/2007 3:43:25 PM
Author: Asharus
From what I gathered, ''replacement'' means they will ''replace'' your ring with an equivalent stone. For example if your appraisal states 1ct, H color, VS1, excellent cut, they will replace it with a diamond that meet those criteria. So make sure your appraisal includes table%, crown angle, etc. if you want them to match that with their ''replacement'' as well.

Sorry to ask another question, but I just thought of it after reading this thread. Is it necessary to have the appraisal to have all the angles of your diamond, if there is a cert that goes with your diamond?

 

[denverappraiser]

Most jewelry policies are agreeing to replace with ‘like kind and quality’ in the case of a loss. The standard for what is like kind and quality will be the appraisal submitted by you when you they agreed to the policy. That’s a big part of why they asked for the appraisal.

When you file a claim, they will first determine if you’re a valid policyholder and that you’ve got a covered loss and will then read the description in the appraisal. They will then go out into the market and see what it will cost them to get one of those.

Yes, you can specify the manufacturer/designer. Replacing a Tiffany with something else is not ‘like kind’. Replacing a super-ideal fireball that you spent months searching the country for with something else isn't like kind either. The key is in your appraisal. If your specs are in there then you can insist on them. If they aren’t then you can’t. Read over the paperwork you plan to submit and ask this question. "If the company were to replace my item with the cheapest thing they could find that meets this description, would I be reasonably likely to be satisfied with the results?” If the answer to this is no then your appraisal is inadequate and if your appraisal is inadequate then you’re not properly insured.

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

 

[Asharus]

Thanks for clarifying the claim process. Now that I think about it, I would like to add to Meloniee''s question. I used my Blue Nile appraisal for Chubb, and it does not have the angles, etc. on the appraisal, however it does state "for more details, please see AGS Cert # attached". They did not advise me to fax a copy of the cert. Should I go ahead and provide them a copy, or will the comment within the appraisal be enough?

 

[denverappraiser]

That will probably be sufficient but I always include a scan of all relevant supporting documents right in the report. My reports can get sort of long but it provides maximum protection for the client. My reports are usually in pdf format and the insurance company just attaches the file directly to your record so size doesn''t matter (

). The document pack from Blue Nile often omits details about other stones, craftsmanship, designers and the like and their value conclusions may be out of whack but they usually are pretty good about the description portion on center diamond.

If the AGS # is referenced in the body of the report then it’s part of the contract but do make sure not to lose yours since they don''t have a copy.

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

 

[HappyFish]

Date: 12/7/2007 7:21:07 AM
Author: denverappraiser
Most jewelry policies are agreeing to replace with ‘like kind and quality’ in the case of a loss. The standard for what is like kind and quality will be the appraisal submitted by you when you they agreed to the policy. That’s a big part of why they asked for the appraisal.

When you file a claim, they will first determine if you’re a valid policyholder and that you’ve got a covered loss and will then read the description in the appraisal. They will then go out into the market and see what it will cost them to get one of those.

Yes, you can specify the manufacturer/designer. Replacing a Tiffany with something else is not ‘like kind’. Replacing a super-ideal fireball that you spent months searching the country for with something else isn''t like kind either. The key is in your appraisal. If your specs are in there then you can insist on them. If they aren’t then you can’t. Read over the paperwork you plan to submit and ask this question. ''If the company were to replace my item with the cheapest thing they could find that meets this description, would I be reasonably likely to be satisfied with the results?” If the answer to this is no then your appraisal is inadequate and if your appraisal is inadequate then you’re not properly insured.

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

Thank you so much for the reply. I have been reading through your previous insurance related posts too. They have been very helpful. I have one more question for you. My insurance company doesn''t ask for an appraisal for any recent purchase. They only ask for the receipt and Tiffany store diamond certificate. Do I still need to get an appraisal anyway?

 

[denverappraiser]

Date: 12/7/2007 11:53:35 AM
Thank you so much for the reply. I have been reading through your previous insurance related posts too. They have been very helpful. I have one more question for you. My insurance company doesn''t ask for an appraisal for any recent purchase. They only ask for the receipt and Tiffany store diamond certificate. Do I still need to get an appraisal anyway?

It’s not the insurance company who benefits by a strong appraisal, it’s you. Of course they don’t require it. Personally, yes I think you should get your Tiffany piece properly appraised and documented but actually they are among the best dealers about keeping records on their customers’ purchases. Assuming that you’ve defined it as a genuine Tiffany item in the contract, if you file a claim and a replacement becomes necessary they will probably contact Tiffany to make the replacement. Tiffany will look in their files and, hopefully, everything they need to know will be there. I’m a bit more compulsive than that. I would want my own records. I’m just sort of like that, but I don’t shop at Tiffany’s either. High quality customer service is part of the reason people shop there. I’m more price conscious in my own shopping.

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

 

[HappyFish]

Date: 12/7/2007 12:12:07 PM
Author: denverappraiser

Date: 12/7/2007 11:53:35 AM
Thank you so much for the reply. I have been reading through your previous insurance related posts too. They have been very helpful. I have one more question for you. My insurance company doesn''t ask for an appraisal for any recent purchase. They only ask for the receipt and Tiffany store diamond certificate. Do I still need to get an appraisal anyway?

It’s not the insurance company who benefits by a strong appraisal, it’s you. Of course they don’t require it. Personally, yes I think you should get your Tiffany piece properly appraised and documented but actually they are among the best dealers about keeping records on their customers’ purchases. Assuming that you’ve defined it as a genuine Tiffany item in the contract, if you file a claim and a replacement becomes necessary they will probably contact Tiffany to make the replacement. Tiffany will look in their files and, hopefully, everything they need to know will be there. I’m a bit more compulsive than that. I would want my own records. I’m just sort of like that, but I don’t shop at Tiffany’s either. High quality customer service is part of the reason people shop there. I’m more price conscious in my own shopping.

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

Thanks Neil.

It makes a lot of sense to me. I have benefited a lot from all your posts.