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Thoughts on insurance: replacement policy VERSUS cash-value return policy?

Discussion in 'RockyTalky' started by dallasstar12, Feb 1, 2010.

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  1. dallasstar12
    Rough_Rock

    Messages:
    19
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    by dallasstar12 » Feb 1, 2010
    Hi everyone,

    I have been reading some of the threads on various insurance policies, and a number of the threads are significantly older and was hoping someone has more recent information on experiences with insurance policies and comments (positive or negative) on repair/replace policies (e.g. GemShield) versus cash-back policies (e.g. Chubb).

    The typical repair/replacement policy is appealing because the annual cost is significantly lower than a cash-value return policy. However, what concerns me are the policy terms of the replacement policies which state they will replace the loss with a "like kind and quality"...This policy language seems very vague and subject to abuse in the event of a loss.

    Has anyone ever had a positive/negative experience with GemShield or any similar replacement policy on a claim?

    Any recommendations on a good insurance policy to go with? A policy with worldwide coverage is crucial.

    Thanks to all!
     
  2. Bosie
    Shiny_Rock

    Messages:
    324
    Joined:
    Aug 21, 2006
    by Bosie » Feb 1, 2010
    If you have homeowners insurance, call you agent, you can add a "personal articles policy". The carrier will need an appraisal. the more detail the better. I have mine with State Farm, they were excellent on a claim. Diamonds lost were H & A''s. They referred me to a couple of local jewelers for service, but when I told the claim people it was a H & A''s stone, they told me the local guy would not have it, and they cut me a check for the appraised value less my $100 deductible, so I was able to replace where I wanted. Best of luck.
     
  3. MissGotRocks
    Ideal_Rock

    Messages:
    9,200
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    Jun 23, 2005
    by MissGotRocks » Feb 1, 2010
    If you go with a replacement type of policy, make sure you have documentation of exactly what the stone is through the diamond cert and detailed appraisal. Then you have something to back up what your diamond was in order to have it replaced with very like kind.
     
  4. denverappraiser
    Ideal_Rock
    Trade

    Messages:
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    Jul 21, 2004
    by denverappraiser » Feb 1, 2010
    ‘Like kind and quality’ is defined by the appraisal that YOU submit. This is one of the reasons that they ask you to submit the appraisal rather than hiring their own experts to evaluate things (even though the latter would probably improve the quality of information). A weak appraisal benefits them. The most important part of the appraisal in terms of insurance is the description, not the value conclusion, precisely because this is what becomes the standard for replacement. It should list everything that you want to be considered come replacement time including weights, manufacturer names, part numbers, certificate numbers (and scans), photographs, H&A and reflector images, etc. If it was important to you when you were shopping, it should be included in the appraisal. The value conclusion is used to set the premium. This is the maximum amount that the company will pay to exact replacement according to the description provided. If they can get it cheaper they will so it doesn’t benefit you to have an inflated appraisal. Done well and backed by a well written appraisal, you’re right that insurance is usually significantly cheaper with a replacement policy but if you provide a weak appraisal you can easily lose your advantage by getting worse coverage for a higher price.

    Neil Beaty
    GG(GIA) ICGA(AGS) NAJA
    Professional Appraisals in Denver
     
  5. dreamer_dachsie
    Super_Ideal_Rock

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