What's up with GemSafe Insurance??

[msop04]

So I've been singing the praises of GemSafe since I changed from JM a year ago. Their premium was a smidge more than HALF what I had paid for JM with the same benefits and deductible. My coverage runs out tomorrow, so I went online to renew my policy with GemSafe... and I was DECLINED! WHAAAAATTTTT????!!!! I tried to call, but their offices were already closed due to them being on EST and I'm on CST. I also sent an email, but it'll probably take a day or two to receive a reply.

I received an email from them stating that their coverage limits had recently changed and that my jewelry exceeded the limit of coverage they provide. I don't have an inflated appraisal, only the dollar amount I actually paid for my diamond alone. So, what gives??? I actually reduced my coverage amount by $2K and resent it to see if that helps, but that's as low as I'm willing to go...

I'm so ticked off right now -- and nervous about not having coverage after tomorrow. Does anyone know the max they'll cover?

 

[whitewave]

Find my post about this earlier in the year. The company is a HOT MESS and I left them.

 

[msop04]

Find my post about this earlier in the year. The company is a HOT MESS and I left them.

I really hate to hear this... they were $258 annually, while JM was almost $500... both with $500 deductibles. Looks like I may just have to bite the bullet on this and go back to freakin' JM... UGH!!

 

[msop04]

Thanks so much for tagging me in the other thread, @whitewave!!

 

[msop04]

Calling, @poshmommy...

I noticed in another thread from January of this year you had GemSafe insurance... now I KNOW you have a lot more coverage than I do because I mean, look at that ROCK!! Have you heard anything about GS decreasing their coverage??

 

[msop04]

Would it be wise to get coverage for less than it would cost to replace my ring... even if I knew I'd have to come up with the rest to get another diamond like it? Has anyone done this before?? I'm just trying to offset the cost of the JM premium...

 

[BlingDreams]

Would it be wise to get coverage for less than it would cost to replace my ring... even if I knew I'd have to come up with the rest to get another diamond like it? Has anyone done this before?? I'm just trying to offset the cost of the JM premium...

I'd say no. Let's say you insure it for $5,000 less. But you'd only be paying another $250/yr in premiums, right? That would take 20 years to make up for the money you'd need to shell out if something happened.

I'd say insure it for what it's worth and just accept it'll cost a little more. Or check with State Farm, USAA (if you qualify), and other places for their quotes

 

[OoohShiny]

I am guessing this is the other related thread! (for future reference )

https://www.pricescope.com/community/threads/gemsafe-insurance-very-poor-customer-service.237262/

 

[msop04]

I'd say no. Let's say you insure it for $5,000 less. But you'd only be paying another $250/yr in premiums, right? That would take 20 years to make up for the money you'd need to shell out if something happened.

I'd say insure it for what it's worth and just accept it'll cost a little more. Or check with State Farm, USAA (if you qualify), and other places for their quotes

I hear you, @ILikeShiny... this is what my husband wants to do. He thinks I'll never have to file a claim, but I'm not a risk taker like that. I have a feeling that the minute I decrease coverage, something will happen. Thanks for the perspective!

 

[Niel]

Ok so I’m going to answer here because I think it would be helpful for people to understand if anyone rehashes this later. MSOP I know I told you some of this already. It’s not to repeat myself just for the benefit of the group

The type of policy you have is unusual in that you have to reapply every year. When you think of your auto or home insurance- for example- you get renewals - not a requirement to re-up after every contract. Different. The difference is that you have to be reunderwritten to current underwriting guidelines- and don’t get the benefit of being grandfathered in or given timelines for non- renewals- etc.

If new underwriting guidelines say “max value x” and you’re 20k over x- then they don’t have a program for you anymore.

Now I’m not surprised that if the company has been considerably undercutting rates from other top companies that they had to reevaluate their limits. If they aren’t making a profit and see losses in this segment- they’re cutting it out.
They just no longer have a market for what you’re trying to insure. It’s no different than if you called your homeowners insurance and said “I’d like to insure this plane”
Nothing wrong with your plane- they just don’t do that sort of insurance.

Please do not underinsured your diamond. Beyond the fact you will set off red flags with underwriting for trying to insure the exact same thing you did earlier now juuuuist under policy limits- but it does you no good to underinsure our item.
If I was the underwriter that got your app - with the discrepancy- I’d say “well let’s get an appraisal so we can be sure of the value”
Then you’re back where you started.

Unfortunately this is the price of having nice things

 

[msop04]

Ok so I’m going to answer here because I think it would be helpful for people to understand if anyone rehashes this later. MSOP I know I told you some of this already. It’s not to repeat myself just for the benefit of the group

The type of policy you have is unusual in that you have to reapply every year. When you think of your auto or home insurance- for example- you get renewals - not a requirement to re-up after every contract. Different. The difference is that you have to be reunderwritten to current underwriting guidelines- and don’t get the benefit of being grandfathered in or given timelines for non- renewals- etc.

If new underwriting guidelines say “max value x” and you’re 20k over x- then they don’t have a program for you anymore.

Now I’m not surprised that if the company has been considerably undercutting rates from other top companies that they had to reevaluate their limits. If they aren’t making a profit and see losses in this segment- they’re cutting it out.
They just no longer have a market for what you’re trying to insure. It’s no different than if you called your homeowners insurance and said “I’d like to insure this plane”
Nothing wrong with your plane- they just don’t do that sort of insurance.

Please do not underinsured your diamond. Beyond the fact you will set off red flags with underwriting for trying to insure the exact same thing you did earlier now juuuuist under policy limits- but it does you no good to underinsure our item.
If I was the underwriter that got your app - with the discrepancy- I’d say “well let’s get an appraisal so we can be sure of the value”
Then you’re back where you started.

Unfortunately this is the price of having nice things

Yep... I'm back with JM. GemSafe emailed me back, but wouldn't disclose their max dollar amount to cover. However, I don't think it's very high (especially considering they're insuring engagement rings). Thanks for the great explanation, as I'm certain others will benefit from it.

 

[poshmommy]

So I've been singing the praises of GemSafe since I changed from JM a year ago. Their premium was a smidge more than HALF what I had paid for JM with the same benefits and deductible. My coverage runs out tomorrow, so I went online to renew my policy with GemSafe... and I was DECLINED! WHAAAAATTTTT????!!!! I tried to call, but their offices were already closed due to them being on EST and I'm on CST. I also sent an email, but it'll probably take a day or two to receive a reply.

I received an email from them stating that their coverage limits had recently changed and that my jewelry exceeded the limit of coverage they provide. I don't have an inflated appraisal, only the dollar amount I actually paid for my diamond alone. So, what gives??? I actually reduced my coverage amount by $2K and resent it to see if that helps, but that's as low as I'm willing to go...

I'm so ticked off right now -- and nervous about not having coverage after tomorrow. Does anyone know the max they'll cover?

Sorry to be late to the party! I don't know what's going on with them either. I got declined this year when I went to renew my engagement ring. They said they had lot of payouts this year and the underwriters got more strict. I called to talk to my original agent and she emailed back stating she talked to them and all was fine now. I'm not sure about the company now either. Probably a good idea to go back to JM.

 

[msop04]

Sorry to be late to the party! I don't know what's going on with them either. I got declined this year when I went to renew my engagement ring. They said they had lot of payouts this year and the underwriters got more strict. I called to talk to my original agent and she emailed back stating she talked to them and all was fine now. I'm not sure about the company now either. Probably a good idea to go back to JM.

Thanks for responding... When I called to speak with them, they said that they weren't able to cover the amount my ring was insured for -- which I only insured the amount I paid for the diamond... not an appraised (i.e. inflated) amount. I asked if they'd be able to insure $5K less than that, and they said no... not close. Also, I have never filed a claim for jewelry with any company. I know your ring is waaaaaaaayyyyy more valuable than mine, so I really don't understand why they would insure some and not others.