Jewelry / State Farm Insurance - Question

[Jhyphi]

Hi,

So I'm looking to get some insurance and my car/rental company State Farm says that I'd open a separate Personal Items policy. It seems from searching, that a number of people have done it this way and had good success.

When asking questions, these came up.

· Accidental loss or chipping is covered

· You may be able to choose your own repair but State Farm of course has to agree with cost of repair. If you lose the ring State Farm would try to find a similar item

· Purposeful damage or loss is not covered and normal wear and tear is also not covered

So my questions are:
1) Is it normal that "wear and tear" is not covered? How is that different from accidental chipping?
2) And the "State Farm would try to find a similar item". Is that common for jewelry insurance? Does that mean that they'll just get a random other stone with same 4 C's general specs, or does the appraisal value factor in so I can find one with a good cut?

Anyone with more knowledge?

Thanks everyone!

 

[diamondseeker2006]

I'd never make an insurance claim for repairs to a setting or anything like that, anyway (higher premiums). Insurance is really to protect you for when you lose or damage the piece (as in crack the diamond, etc.). They should try to find a replacement that is similar to what was lost, but honestly, I think a jewelry insurer is a better choice. Get a quote from Jeweler's Mutual. Then if you have a loss, they often let you work with the jeweler of your choice, so you are able to have more control over the replacement.

If a diamond is chipped, it could need to be replaced. If polishing out the chip makes the stone smaller and causes it to lose value, you may want to give it up and get a replacement instead. If it is very tiny, it probably can be polished out.

 

[madelise]

My insurance doesn't cover normal wear and tear. That includes prong retipping, polishing, etc.

 

[Diamond_Hawk]

I'd never make an insurance claim for repairs to a setting or anything like that, anyway (higher premiums). Insurance is really to protect you for when you lose or damage the piece (as in crack the diamond, etc.). They should try to find a replacement that is similar to what was lost, but honestly, I think a jewelry insurer is a better choice. Get a quote from Jeweler's Mutual. Then if you have a loss, they often let you work with the jeweler of your choice, so you are able to have more control over the replacement.

If a diamond is chipped, it could need to be replaced. If polishing out the chip makes the stone smaller and causes it to lose value, you may want to give it up and get a replacement instead. If it is very tiny, it probably can be polished out.

+1

 

[bcavitt]

I'd never make an insurance claim for repairs to a setting or anything like that, anyway (higher premiums). Insurance is really to protect you for when you lose or damage the piece (as in crack the diamond, etc.). They should try to find a replacement that is similar to what was lost, but honestly, I think a jewelry insurer is a better choice. Get a quote from Jeweler's Mutual. Then if you have a loss, they often let you work with the jeweler of your choice, so you are able to have more control over the replacement.

If a diamond is chipped, it could need to be replaced. If polishing out the chip makes the stone smaller and causes it to lose value, you may want to give it up and get a replacement instead. If it is very tiny, it probably can be polished out.

State Farm does require to go through one of their preferred jewelers if you have a claim. These jewelers contract to work with State Farm under their terms and margins in return for the referral business.

 

[DAF]

I second the Jeweler's Mutual recommendation for the simple facts that you get to pick your replacement and your jeweler.

 

[AprilBaby]

I chipped a side stone and State Farm cut me a check and let me replace my stone with a WF ACA. In fact they gave me enough money to replace both my side stones (3stone ring) with much better quality ACA. Stand your ground and don't accept the jeweler they want. WF prices were much better.

 

[denverappraiser]

1) It's a tricky question. Normal wear would generally apply to things like prongs wearing out, reshanking and so on. I've not seen an insurance company claim chipping of stones as normal wear but I suppose they could if they want to press it. I see claims for chipped and damaged stones fairly often and have yet to see one declined for that reason, but that doesn't mean they never will.

2) The company is usually agreeing to replace with 'like kind and quality', or words to that effect, in the case of a loss, and the definition of 'like kind and quality' is the description and photos in the appraisal you submit when you bind the policy. That's why they want it, and why it benefits you to have as specific and detailed report as possible. Yes, 4C's are part of it. No, they are not the only part.

3) The value conclusion on the appraisal will be the maximum limit of liability. That's the 'face value' of the policy. It's not the expected payout for a loss. If you have a loss they will use the description and photos through their own sources to try and find a good price on the item. If they can find it for less than the declared value, that's what they'll do. They hire full time professional shoppers for this purpose. This is routinely a point of confusion for both appraisal clients and insurance customers. Yes, this is typical.

4) Damage claims, like chipping, are basically the same thing. They'll send you to their supplier, or allow you to choose from a list of pre-approved suppliers, who will bid to do the necessary repairs. They may use the one you like but you're jeweler does not have carte blanche to charge whatever they want. This too is typical.

 

[MollyMalone]

* * * So my questions are:
1) Is it normal that "wear and tear" is not covered? How is that different from accidental chipping? * * *

Perhaps it would be helpful to think of this as akin to your auto insurance; your auto insurance won't cover wear and tear on your vehicle's upholstery, but would cover body repair required as a result of your rear end getting banged in a parking lot, or replacing your windshield because a stone from the road hit the windshield & cracked it as you were driving.
Does the State Farm policy have, say, a $500 deductible; if so, that alone would preclude you from submitting a claim for costs of sprucing up/repairing the usual "wear and tear".

 

[Jhyphi]

I chipped a side stone and State Farm cut me a check and let me replace my stone with a WF ACA. In fact they gave me enough money to replace both my side stones (3stone ring) with much better quality ACA. Stand your ground and don't accept the jeweler they want. WF prices were much better.

What do you mean by "stand your ground"? It seems others say that you have to go to their pre-approved list?

-----------------------

Also, do others know if Jewelers Mutual let you pick your own jeweler? I assume that's why people here recommend them?

 

[denverappraiser]

Yes and no.

They say you can pick your jeweler, and indeed you can (most insurers say the same thing by the way). But they won't necessarily pay your jeweler whatever they want to charge, and your jeweler may not be willing to accept what they're willing to pay. It's possibly a semantic difference, but it seems important.

That said, they actually pay pretty well. They do it on a cost plus basis and the payout is routinely better than the typical PS inspired deal for example. There's probably a few jewelers out there who won't work with them, but really they're quite reasonable. There HAS to be some sort of limits after all.

 

[Jhyphi]

Yes and no.

They say you can pick your jeweler, and indeed you can (most insurers say the same thing by the way). But they won't necessarily pay your jeweler whatever they want to charge, and your jeweler may not be willing to accept what they're willing to pay. It's possibly a semantic difference, but it seems important.

That said, they actually pay pretty well. They do it on a cost plus basis and the payout is routinely better than the typical PS inspired deal for example. There's probably a few jewelers out there who won't work with them, but really they're quite reasonable. There HAS to be some sort of limits after all.

My State Farm agent says that with repairs I can pick my jeweler.

But according to emails back and forth with the State Farm agent, lost/stolen replacement (the more important in my mind) will go to their:

vendor that can help to find a similar replacement item and that’s why a detailed description of the item is so important. You may choose to cash out but it will be based on replacement value up to policy limits. If you want to settle for another style, State Farm can pay up to the replacement value of the missing item

Is this part typical, with the vendor? It sounds like your experience with State Farm is that you pick your own jeweler but they say that it goes to this "Vendor" who will try to find a similar one where I would have very little say? (They might just do rough 4 C's?) I'm worried since I'm paying for a really good cut, otherwise the stone would definitely be cheaper.

 

[denverappraiser]

They will price it at a 3rd party vendor to replace in the case of a loss. You can then do the actual replacement, or not, wherever you like. The amount they'll pay will be based on what it would have cost them to do it at their suppler. If your jeweler will meet or beat that, they're welcome to do so, but expect a fight if your guy costs more (it's a fight that you can win based on the branding documentation in your appraisal, but expect a battle). If you get a premium cut, and properly document in the paperwork you give them, that becomes the definition of 'like kind and quality', and that's what they will either need to meet or exceed with their replacement company or cash out for full face value.

With all things insurance, the actually policy rules. They're not all the same. They vary from state to state and even policy to policy. I"m not an insurance agent and answering questions like this is what your agent is for. They trump me.