Jewelry Insurance need some thought please.

[Vangrocks]

Hello Pricescopers!
I have been doing a bit of research on some of the 3 main jewelry insurance companies of: Jewelers Mutual (JM/Perfect Circle/PC), Chubb and Lavalier. I am interested to know your experiences with these companies? And the easiest to work with?
I currently have JM for my ering. I have made a claim to replace this ring so it is not my original. During the time I was replacing my ring I regretfully (before I knew any better) went through JM and a local B&M store. There was a lot of dealing that went on with the B&M store and JM. The check went from one hand to another and was not in mine. I have learned a lot since joining the PS community. For any future diamond purchase or replacement I would be purchasing from a reputable diamond supplier recommended through PS. Do these insurance company allow for overy the net purchases in the event of replacement?
Thank you in advance.

 

[Vangrocks]

Hey Pricescopers..i really need some help on this. I am currently without insurance. I need recommendations on a jewelry insurance company that will cover my jewelry and allow for an online purchase rather then having to go to a local B&M.
Thanks

Sent from my SM-N910P using Tapatalk

 

[Resonance.Of.Life]

When I had to replace my ering due to it being lost/stolen (at a restaurant), JM allowed me to replace through online vendors.

 

[PierreBear]

I've been lucky that I haven't had to replace a ring through insurance. However, we have it insured under our general home owners insurance. Perhaps I need to look into it to see what it would actually allow us to replace and how they would actually pay out. Just curious... why would once consider a specialty insurer on just jewelry?

Side note - I remember asking my husband if we should take my wedding band off the insurance. Simple shared prong band that probably original retail for 2K. With depreciation and wearing it overtime, I felt like there was no need for it as it didn't cost enough to get a policy on it. I remember him saying that our Nationwide doesn't really make much of a profit on it so to just keep it on there. So perhaps your home owners insurance is a good place to check for a good "bang for your buck?"

Hopefully others will chime in as I believe this is an important topic that others would be interested in too!

 

[Diamond_Hawk]

Vangrocks,

Most of the time the company who insures your item will agree to replace it with "like kind and quality" when there is a case of a loss that is covered. The best idea is to ask, specifically, what that means as you are acquiring a policy - if you don't like the answer (which you should get in writing) see if you can find a company where you DO like the answer. The rules vary from company to company (and state vs. state) but the reason your agent is there is to make sure you get the answers to your questions - use the agent's knowledge and expertise (in writing). In most cases the important part is the appraisal report that you submit - that will become the basis for the 'like kind and quality' so make sure the details of branding and other relevant information is included in that appraisal. Even a terrifically made imitation is an imitation. If you have a branded item, some insurance companies may be able to source the actual branded item from their own outlet agreements - good for them - but most likely they cannot. Just be certain whatever you insure cannot be replaced with an inferior 'like kind and quality' - to do that the appraisal report should be very specific.

 

[WinkHPD]

Hello Pricescopers!
I have been doing a bit of research on some of the 3 main jewelry insurance companies of: Jewelers Mutual (JM/Perfect Circle/PC), Chubb and Lavalier. I am interested to know your experiences with these companies? And the easiest to work with?
I currently have JM for my ering. I have made a claim to replace this ring so it is not my original. During the time I was replacing my ring I regretfully (before I knew any better) went through JM and a local B&M store. There was a lot of dealing that went on with the B&M store and JM. The check went from one hand to another and was not in mine. I have learned a lot since joining the PS community. For any future diamond purchase or replacement I would be purchasing from a reputable diamond supplier recommended through PS. Do these insurance company allow for overy the net purchases in the event of replacement?
Thank you in advance.

Yes, they will. Provided of course that the Internet vendor is willing to play by their rules.

When JM has me do a replacement, I have to agree to replace the item "Like Kind" which means if you had a GIA Ex 1.28 G-VS2 that I must use a GIA Ex 1.28 G-VS2 or better. I must do it within the limit of your insurance. It also means that if you had a branded item such as one of my Crafted by Infinity diamonds and this information is listed on the appraisal that the replacing jeweler is NOT allowed to try to convince you that his GIA Ex is "good enough". "Like Kind" and quality is "Like Kind" and quality. No substitutions need apply, unless YOU request it.

Let's say that you have (Made up pricing here, bearing no relationship to the diamond above) $10,000 coverage for the diamond that you have lost.That is the maximum that I am allowed to spend, including my profit, to replace the diamond. Now before you get all excited and rush out to get a higher appraisal, be assured that this is not necessarily the amount that I can be reimbursed for.

JM, and other insurers, have a fly in the ointment for such things. They will want to see my actual invoices from my suppliers for the diamond that I use for your replacement, and they will give me a percentage profit over my actual cost. So if you have been paying the premiums on a $10,000 valuation for a diamond that can be replaced for $5,000, including my allowable markup percentage, then $5,000 is the most I will receive, thus the value of the diamond that you receive will be the best diamond that I can get you for that $5,000.

Just to put some faces to the numbers. Let's say you have lost a 0.75 ct diamond that is a GIA Ex G-VS2 that is way over insured, I can not go out and get you a 1.25 ct G-VS2 that I could at the price you have insured the diamond for. I can get you a 0.75 ct G-VS2 or perhaps a G-VS1 or perhaps an F-VS2 that was perhaps as high as a 0.76 or 0.77. Something that might reasonably be expected in a search for a 0.75 G-VS2. The insurance company will accept a little better than what you lost rather than trying to force you to accept something a little worse than what you lost. There is a three times the value penalty for acting in bad faith and delivering less than "Like Kind." (At least in Idaho, your state may vary.)

The insurance company will not, however, allow me to grossly go above what you had as the purpose of insurance is to make you well, not create a profit for you. So, DO NOT waste money over insuring your jewelry, it will cost you more money in annual premiums and it will not enrich you if something happens.

You can, however, replace your lost diamond with a one that is significantly larger, higher quality, and much more expensive. Not a problem at all. All you must do is determine the price that your existing diamond could be replaced for, assuming that it is within the limits of your policy, and pay the overage for stepping up in size or quality or both.

The above applies to "replacement value" insurance. If you have a policy that will just write you a check, then the premiums will be higher on the value of the piece, and the insurance company will be watching for over rated evaluations at the time the policy is placed. An item is lost, you receive a check and you may do with it what you wish, whether it is replacing the jewelry or paying the rent.

I hope this helps.

Wink

 

[diamondseeker2006]

I've been lucky that I haven't had to replace a ring through insurance. However, we have it insured under our general home owners insurance. Perhaps I need to look into it to see what it would actually allow us to replace and how they would actually pay out. Just curious... why would once consider a specialty insurer on just jewelry?

Side note - I remember asking my husband if we should take my wedding band off the insurance. Simple shared prong band that probably original retail for 2K. With depreciation and wearing it overtime, I felt like there was no need for it as it didn't cost enough to get a policy on it. I remember him saying that our Nationwide doesn't really make much of a profit on it so to just keep it on there. So perhaps your home owners insurance is a good place to check for a good "bang for your buck?"

Hopefully others will chime in as I believe this is an important topic that others would be interested in too!

To answer your question in bold, it is so that if you ever have to make a claim, it won't go against your whole homeowners policy. Much better to keep jewelry on a separate policy, in my opinion.

I never insure anything that would be painful financially to replace myself. So really, I only insure my e-ring and diamond studs (which are over a carat each) because I wear those the most and would definitely need to replace them if stolen or damaged and would hate having to pay for them again out of pocket. I also don't insure low value items because making a claim may make the premiums go up on the whole policy, so it's not worth doing, in my opinion.

 

[diamondseeker2006]

Hello Pricescopers!
I have been doing a bit of research on some of the 3 main jewelry insurance companies of: Jewelers Mutual (JM/Perfect Circle/PC), Chubb and Lavalier. I am interested to know your experiences with these companies? And the easiest to work with?
I currently have JM for my ering. I have made a claim to replace this ring so it is not my original. During the time I was replacing my ring I regretfully (before I knew any better) went through JM and a local B&M store. There was a lot of dealing that went on with the B&M store and JM. The check went from one hand to another and was not in mine. I have learned a lot since joining the PS community. For any future diamond purchase or replacement I would be purchasing from a reputable diamond supplier recommended through PS. Do these insurance company allow for overy the net purchases in the event of replacement?
Thank you in advance.

You should add Touchstone Insurance to your list. They offer both replacement and cash out policies if you are in a state they serve. Their Gemsafe quote is almost exactly the same as what I pay through Chubb.

http://www.touchstoneinsurance.com/index.html

Great FAQs, too:

https://www.gemsafe.com/faq

 

[diamondseeker2006]

Actually, it looks like you may be able to get a Gemsafe policy directly through their site. Just another option to explore.

https://www.gemsafe.com/

 

[ame]

Also, unless something changed recently, Chubb doesn't write standalone policies anymore.

 

[whitewave]

Hello Pricescopers!
I have been doing a bit of research on some of the 3 main jewelry insurance companies of: Jewelers Mutual (JM/Perfect Circle/PC), Chubb and Lavalier. I am interested to know your experiences with these companies? And the easiest to work with?
I currently have JM for my ering. I have made a claim to replace this ring so it is not my original. During the time I was replacing my ring I regretfully (before I knew any better) went through JM and a local B&M store. There was a lot of dealing that went on with the B&M store and JM. The check went from one hand to another and was not in mine. I have learned a lot since joining the PS community. For any future diamond purchase or replacement I would be purchasing from a reputable diamond supplier recommended through PS. Do these insurance company allow for overy the net purchases in the event of replacement?
Thank you in advance.

Yes, they will. Provided of course that the Internet vendor is willing to play by their rules.

When JM has me do a replacement, I have to agree to replace the item "Like Kind" which means if you had a GIA Ex 1.28 G-VS2 that I must use a GIA Ex 1.28 G-VS2 or better. I must do it within the limit of your insurance. It also means that if you had a branded item such as one of my Crafted by Infinity diamonds and this information is listed on the appraisal that the replacing jeweler is NOT allowed to try to convince you that his GIA Ex is "good enough". "Like Kind" and quality is "Like Kind" and quality. No substitutions need apply, unless YOU request it.

Let's say that you have (Made up pricing here, bearing no relationship to the diamond above) $10,000 coverage for the diamond that you have lost.That is the maximum that I am allowed to spend, including my profit, to replace the diamond. Now before you get all excited and rush out to get a higher appraisal, be assured that this is not necessarily the amount that I can be reimbursed for.

JM, and other insurers, have a fly in the ointment for such things. They will want to see my actual invoices from my suppliers for the diamond that I use for your replacement, and they will give me a percentage profit over my actual cost. So if you have been paying the premiums on a $10,000 valuation for a diamond that can be replaced for $5,000, including my allowable markup percentage, then $5,000 is the most I will receive, thus the value of the diamond that you receive will be the best diamond that I can get you for that $5,000.

Just to put some faces to the numbers. Let's say you have lost a 0.75 ct diamond that is a GIA Ex G-VS2 that is way over insured, I can not go out and get you a 1.25 ct G-VS2 that I could at the price you have insured the diamond for. I can get you a 0.75 ct G-VS2 or perhaps a G-VS1 or perhaps an F-VS2 that was perhaps as high as a 0.76 or 0.77. Something that might reasonably be expected in a search for a 0.75 G-VS2. The insurance company will accept a little better than what you lost rather than trying to force you to accept something a little worse than what you lost. There is a three times the value penalty for acting in bad faith and delivering less than "Like Kind." (At least in Idaho, your state may vary.)

The insurance company will not, however, allow me to grossly go above what you had as the purpose of insurance is to make you well, not create a profit for you. So, DO NOT waste money over insuring your jewelry, it will cost you more money in annual premiums and it will not enrich you if something happens.

You can, however, replace your lost diamond with a one that is significantly larger, higher quality, and much more expensive. Not a problem at all. All you must do is determine the price that your existing diamond could be replaced for, assuming that it is within the limits of your policy, and pay the overage for stepping up in size or quality or both.

The above applies to "replacement value" insurance. If you have a policy that will just write you a check, then the premiums will be higher on the value of the piece, and the insurance company will be watching for over rated evaluations at the time the policy is placed. An item is lost, you receive a check and you may do with it what you wish, whether it is replacing the jewelry or paying the rent.

I hope this helps.

Wink

This has me stunned and worried about my insurance policies. For instance, I paid about 12k for my engagement ring and am paying insurance on 22k valuation through state farm.

I paid 2,800 for antique earrings and am paying insurance on an $8,000 appraisal. And $4,600 on a pair of earrings I paid $2.600 for (these are through gem safe).

I need to make some phone calls and possibly get them all re appraised for true values.

 

[whitewave]

Ok. Gem safe FAQ seems to indicate they reimburse for the agreed upon value, which I believe means the amount of the insured value.

 

[Tacori E-ring]

I would only use a company that gives YOU the cash. JM can be very strict.

 

[poshmommy]

I would only use a company that gives YOU the cash. JM can be very strict.

Gem safe does have a cash payout policy too called gemextensive

 

[WinkHPD]

I would be very surprised if a cash out policy, especially one with overly high values, was not much more expensive than a replacement policy.

As always, I reserve the right to be wrong...

Wink

 

[Lookinagain]

I have had several jewelers give me an appraisal and an "insurance appraisal" which is always right around what I paid and not some inflated value. Not sure what the plain appraisal is for unless it is to make me feel like I got a bargain. I always disregard that and go by the "insurance appraisal" when I insure as I know that is what the item can be replaced for so that is all I will get. I guess insurance companies make a killing on people who insure for the regular appraisal that they generally give (which I used to do until I learned better), so yes, Whitewave, unless you buy an expensive cash out policy, you should probably go obtain "insurance appraisals" and save yourself a lot of premium dollars.

 

[whitewave]

By the way wink, someone recommended you over on a cruise bulletin board!

 

[whitewave]

I have already told Gensafe I will get these reappraised for a more realistic value.

 

[Resonance.Of.Life]

I have had several jewelers give me an appraisal and an "insurance appraisal" which is always right around what I paid and not some inflated value. Not sure what the plain appraisal is for unless it is to make me feel like I got a bargain. I always disregard that and go by the "insurance appraisal" when I insure as I know that is what the item can be replaced for so that is all I will get. I guess insurance companies make a killing on people who insure for the regular appraisal that they generally give (which I used to do until I learned better), so yes, Whitewave, unless you buy an expensive cash out policy, you should probably go obtain "insurance appraisals" and save yourself a lot of premium dollars.

Even with an expensive cash out policy, I am sure they only cut a check for the actual retail value of the diamond. Paying for overinflated insurance premiums is not worth it.

 

[poshmommy]

I would be very surprised if a cash out policy, especially one with overly high values, was not much more expensive than a replacement policy.

As always, I reserve the right to be wrong...

Wink

It is more expensive. My quote for cash out was around $385 more than the replacement policy. I figured while my cutters and designers are still thriving in the business I would stick with replacement. Later, I might switch to cash out. Not as bad as I would have thought though.

 

[Resonance.Of.Life]

I would be very surprised if a cash out policy, especially one with overly high values, was not much more expensive than a replacement policy.

As always, I reserve the right to be wrong...

Wink

It is more expensive. My quote for cash out was around $385 more than the replacement policy. I figured while my cutters and designers are still thriving in the business I would stick with replacement. Later, I might switch to cash out. Not as bad as I would have thought though.

Really? My Chubb policy was $287 cheaper than my JM policy.

 

[WinkHPD]

By the way wink, someone recommended you over on a cruise bulletin board!

OMG, I gonna be famous!

You just started my day off with a grin.

Thank you.

Wink

 

[poshmommy]

I would be very surprised if a cash out policy, especially one with overly high values, was not much more expensive than a replacement policy.

As always, I reserve the right to be wrong...

Wink

It is more expensive. My quote for cash out was around $385 more than the replacement policy. I figured while my cutters and designers are still thriving in the business I would stick with replacement. Later, I might switch to cash out. Not as bad as I would have thought though.

Really? My Chubb policy was $287 cheaper than my JM policy.

Sorry to be confusing! The price difference I stated above was for the gem safe (replacement policy) vs gem extensive (cash out policy) through the same company, touchstone jewelry insurance underwritten by Sterling Risk. I also got a state farm replacement quote that was $500 more expensive and JM was $400-500 more expensive than the gem safe replacement policy.

So to sum up, gem safe was the cheapest, but I could even get a cash out policy from gem safe for cheaper then JM.

 

[dazzlerazzle]

SO glad I finally found this thread again! I remembered seeing it floating around a while ago but forgot to favorite it - thanks so much for the helpful and current advice everyone!