Why is USAA refusing to insure rings for appraisal value?

[apacherose]

They are stating that they will only insure for the retail amount I paid.

I had rings appraised by an independent appraiser, and trust that the value he assigned is appropriate for insurance coverage.

What gives? Anyone had a similar experience with USAA?

 

[Niel]

Re: Why is USAA refusing to insure rings for appraisal value

How old is the appraisal?I'm assuming not old, based on the date you joined...but that's the only thing I could think of.

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

Thanks for the reply, Niel. Appraisal is new. In fact, they said anything within the last 4 years would be insured at retail price paid. So... why have an appraisal at all?

Something seems so OFF; other items in under my 'valuable personal property' policy with them, like rugs and other jewelry, is insured at appraisal value.

 

[Niel]

Re: Why is USAA refusing to insure rings for appraisal value

It is odd, who did you speak with? Your agent? Or did you call the company directly?

The company I am familiar with - when you're scheduling jewelry, they require a description and either receipts or an appraisal when its over 2500. Tjey have a requirement as to how old the docs have to be, but I'd bet yours is new enough.

Would you prefer to have it as a rider on your insurance or a separate insurance? There are places like jewelry mutual that will insure your jewelry alone. I do that myself just because I don't like the idea of making a claim on my homeowners just for jewelry. Also, I like to be able to set the deductible differently than my home

Just something to consider if USAA won't work with you, but depending on who you talked to- I'd just talk to someone else and see. Every company is different, but if they take appraisal value for other things, seems odd they won't for this.

 

[the_mother_thing]

Re: Why is USAA refusing to insure rings for appraisal value

I have usaa and my jewelry is insured for appraised amounts. Did you go onto their site & upload the docs/description or call them to insure the items? I am very interested in how this plays out and why.

 

[Niel]

Re: Why is USAA refusing to insure rings for appraisal value

I have usaa and my jewelry is insured for appraised amounts. Did you go onto their site & upload the docs/description or call them to insure the items? I am very interested in how this plays out and why.

I'm interested to hear if she spoke with a rep over the phone or her agent or a CSR or something. Not that there aren't good agents out there but a lot of then don't know what they are talking about.

 

[the_mother_thing]

Re: Why is USAA refusing to insure rings for appraisal value

Agree Niel. I called and asked to speak with a specialist in jewelry insurance when I initiated my policy. Since then, I have just been able to add items & upload appraisals to the website to add them to my policy. But your point about making a claim on the policy is a good/valid one. I might call JM for a quote and see how it stacks up. I do know my items are fully covered against all perils, and usaa has always been good to me, so I feel comfortable with them covering my assets.

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

So, I have uploaded all the documents. No problem. The only requirement I have not uploaded is a signed copy of the appraisal. I am still waiting on that, as the appraisal I was given was not signed- it was given electronically, and, submitted electronically. It should be an easy fix once regular business hours resume.

I am almost tempted to post the email verbage here- I have gotten different answers from the representatives I have spoken with over the phone for the last few days, however, as always, I am assuming that only what is in writing is the 'reality'.

In writing, they are only insuring for the purchase price, and will determine the value at the time of a claim in order to replace with like kind. But... what if it costs more than what I purchased it for?

And again, what value does an appraisal have if USAA will only insure for the retail paid... and what if you get something on sale?

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

I have usaa and my jewelry is insured for appraised amounts. Did you go onto their site & upload the docs/description or call them to insure the items? I am very interested in how this plays out and why.

That is what is so strange!

My other items insured with them are the appraisal values.

I have gotten a quote from Jewelers Mutual, and I am going to also get one from Chubbs. Concerning USAA, I just am baffled as to why:

a) I get different answers from different representatives- on insurance values and replacement policies, as to whether or not the items are covered during shipping, etc. and, yes, all the folks I have spoken with are in the valuable personal property division of the insurance department (they have a VPP team, internationally trained people, as well as an offline team, who communicate in writing)

b) why my other rings and items were all made to be insured at the appraisal value, and now the change???

 

[SB621]

Re: Why is USAA refusing to insure rings for appraisal value

I have usaa and my jewelry is insured for appraised amounts. Did you go onto their site & upload the docs/description or call them to insure the items? I am very interested in how this plays out and why.

That is what is so strange!

My other items insured with them are the appraisal values.

I have gotten a quote from Jewelers Mutual, and I am going to also get one from Chubbs. Concerning USAA, I just am baffled as to why:

a) I get different answers from different representatives- on insurance values and replacement policies, as to whether or not the items are covered during shipping, etc. and, yes, all the folks I have spoken with are in the valuable personal property division of the insurance department (they have a VPP team, internationally trained people, as well as an offline team, who communicate in writing)

b) why my other rings and items were all made to be insured at the appraisal value, and now the change???

Ummm...I'm not sure about this. I have used USAA for almost a decade with my jewelry. I have also only worked with 1 person by request for all my jewelry issues (adding stuff, deleting from policy, changing values etc) and I have never had any issues. I think the detail that is missing here is what is the dollar amount you are trying to insure for. If you bought something for 5k but it appraised for 15k that will be a red flag to them and you will need additional supporting documentation. For anything over 25k you can't add it online but will need to speak to a representative and get 2 managers up approvals to add. Also if it is a diamond over 1ct without a GIA/ EGL/ AGL report they don't like to take appraisals, but want the report number and then your receipt. I recommend the next time you call you get the name and agent number of who you work with and they only work with them on your VPP. For what it is worth I have LOVED USAA. I have filed several lost/ stolen claims with them over the years they have always been super easy to deal with. once again I have just kept the name of the agent and only work through her. goodluck!

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

Ummm...I'm not sure about this. I have used USAA for almost a decade with my jewelry. I have also only worked with 1 person by request for all my jewelry issues (adding stuff, deleting from policy, changing values etc) and I have never had any issues. I think the detail that is missing here is what is the dollar amount you are trying to insure for. If you bought something for 5k but it appraised for 15k that will be a red flag to them and you will need additional supporting documentation. For anything over 25k you can't add it online but will need to speak to a representative and get 2 managers up approvals to add. Also if it is a diamond over 1ct without a GIA/ EGL/ AGL report they don't like to take appraisals, but want the report number and then your receipt. I recommend the next time you call you get the name and agent number of who you work with and they only work with them on your VPP. For what it is worth I have LOVED USAA. I have filed several lost/ stolen claims with them over the years they have always been super easy to deal with. once again I have just kept the name of the agent and only work through her. goodluck!

Thanks for your reply! I know- we love USAA, too! We have used them for 15 years for all kinds of things, including jewelry.

I will take your suggestion to try to find 'my' representative and stick with them. While I am trying to insure a high value item, it is quite legitimate, AGS certified, independent (licensed) appraiser. I have spoken only with folks in the VPP dept., but there are the regular VPP people, and international (we are overseas... but one place we call 'home' is in your neck of the woods, I believe, SB) and then the VPP people who are working on this piece are the 'offline' group, so I can't even speak to them on the phone and it is all done through the messages online. And it is DIFFERENT than the representatives, even the managers I've waited on hold for, are telling me.

Different answers regarding whether items should be insured for the retail amount paid, or the appraisal amount, as well as regarding whether an item is insured during shipping or not. Kind of important issues for them to know. Frustrating.

Anyways, we have been so fortunate as to not have filed a VPP claim with USAA... thank you for sharing your positive experience; it gives me some motivation to hang in there and try and figure it out.

 

[LoveLikeCrazy]

Re: Why is USAA refusing to insure rings for appraisal value

Agree Niel. I called and asked to speak with a specialist in jewelry insurance when I initiated my policy. Since then, I have just been able to add items & upload appraisals to the website to add them to my policy. But your point about making a claim on the policy is a good/valid one. I might call JM for a quote and see how it stacks up. I do know my items are fully covered against all perils, and usaa has always been good to me, so I feel comfortable with them covering my assets.

We have had our jewelry insured by USAA, but i did not like the way they listed my diamond (refused to put AGS 000, etc) and they also kept going back and forth on how the diamond would be replaced. I ended up getting a quote through jewelers mutual and it was much cheaper than USAA! We moved everything but my husband's rolex watches over there. In the case of the rolex - he ended up losing his and they replaced it within a few days through one of their distributors, so that worked out well.

 

[ame]

Re: Why is USAA refusing to insure rings for appraisal value

I have usaa and my jewelry is insured for appraised amounts. Did you go onto their site & upload the docs/description or call them to insure the items? I am very interested in how this plays out and why.

That is what is so strange!

My other items insured with them are the appraisal values.

I have gotten a quote from Jewelers Mutual, and I am going to also get one from Chubbs. Concerning USAA, I just am baffled as to why:

a) I get different answers from different representatives- on insurance values and replacement policies, as to whether or not the items are covered during shipping, etc. and, yes, all the folks I have spoken with are in the valuable personal property division of the insurance department (they have a VPP team, internationally trained people, as well as an offline team, who communicate in writing)

b) why my other rings and items were all made to be insured at the appraisal value, and now the change???

Chubb no longer does jewelry standalone policies. So you probably will not get a quote unless you're willing to move your house and cars to them.

 

[AprilBaby]

Re: Why is USAA refusing to insure rings for appraisal value

I'm guessing your appraisal is much higher than replacement value.

 

[denverappraiser]

Re: Why is USAA refusing to insure rings for appraisal value

I interact with USAA regularly, and they're very cooperative. There's more to this story. Here are a few options I can think of:

1) They have a problem with the appraiser. Lack of credentials is usually the issue here. They like appraisers with qualifications and, frankly, most don't have anything at all or just a GG (which is a gemological credential, not an appraisal one). If this is the problem, they should be prepared to tell you what they're looking for.

2) The underwriter thinks the replacement value is out of line. Not that this is any of their business. Assuming they're accepting the appraiser as an expert, they are bound by their report. That said, sometimes appraisers put some pretty crazy values on things and they may be doing you a favor to reject it.

3) The report itself is inadequate in some way. Lack of photos, unclear description, missing data, wrong value definition, wrong date and the like. As with the above, they should be happy to tell you what the problem is if this is the case.

4) They have a problem with the item itself. Antiques can be an issue because they're difficult to replace and pre-existing damage can get you kicked out of the system. Once again, the agent should be able to tell you if this is the issue.

5) The agent you're talking to is either untrained or doesn't understand the question. Talk to a supervisor.

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

I interact with USAA regularly, and they're very cooperative. There's more to this story. Here are a few options I can think of:

1) They have a problem with the appraiser. Lack of credentials is usually the issue here. They like appraisers with qualifications and, frankly, most don't have anything at all or just a GG (which is a gemological credential, not an appraisal one). If this is the problem, they should be prepared to tell you what they're looking for.

2) The underwriter thinks the replacement value is out of line. Not that this is any of their business. Assuming they're accepting the appraiser as an expert, they are bound by their report. That said, sometimes appraisers put some pretty crazy values on things and they may be doing you a favor to reject it.

3) The report itself is inadequate in some way. Lack of photos, unclear description, missing data, wrong value definition, wrong date and the like. As with the above, they should be happy to tell you what the problem is if this is the case.

4) They have a problem with the item itself. Antiques can be an issue because they're difficult to replace and pre-existing damage can get you kicked out of the system. Once again, the agent should be able to tell you if this is the issue.

5) The agent you're talking to is either untrained or doesn't understand the question. Talk to a supervisor.

Thank you so much for your thoughtful reply.

My appraiser is David Atlas and he seems very well qualified, and the appraisal seems excellent- detailed, with photos, etc. I was completely impressed with his appraisal, and his professional service. Here is some of what USAA has emailed me regarding their justification for only insuring for retail purchase price:

Please be advised items purchased within the last five years are insured for the purchase price since this price reflects the price you actually paid. Appraisals generally provide a complete and accurate description of the item versus the bill of sale or receipt provided by the jeweler. The bill of sale/receipt provides the amount you actually purchased the item for versus an inflated price listed on the appraisal. The purchase price more accurately reflects the actual value and is closer to the Claims Replacement Service price and wholesale pricing that USAA utilizes. The maximum USAA will insure the engagement ring is 25% of the purchase price.

I think what they actually mean is that the max they will insure for is 125%. My appraisal is just slightly over 125% of my retail purchase price. More from USAA:

In the event a claim is filed and deemed a covered loss, the maximum USAA would pay out of pocket would be the purchase price listed on the declarations page. Please keep in mind in the event of a covered loss, it is our option to replace the property with property of comparable kind and quality or pay you the cost to have the property repaired or restored to the condition it was in prior to the loss.

If you don't wish to have the property replaced, repaired or restored, USAA will pay you the lesser of our cost to replace the property, without deduction for depreciation or the cost to repair or restore it. It is our intention to place you back in the same situation you were in prior to the loss and not to exceed the purchase price.

So, again, and what I keep asking USAA is, what if it costs more to replace what I have than what I actually paid for it? In that case it reads like I would be SOL.

Perhaps, then, of your options, it is the item itself? an August Vintage branded diamond, in a designer setting.

In my case, USAA is significantly cheaper than Jewelers Mutual, but, it is important to me to be covered for actual replacement value. I paid a premium for a branded diamond, and a designer setting- I want to be covered to replace it!
Any advice?

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

Agree Niel. I called and asked to speak with a specialist in jewelry insurance when I initiated my policy. Since then, I have just been able to add items & upload appraisals to the website to add them to my policy. But your point about making a claim on the policy is a good/valid one. I might call JM for a quote and see how it stacks up. I do know my items are fully covered against all perils, and usaa has always been good to me, so I feel comfortable with them covering my assets.

We have had our jewelry insured by USAA, but i did not like the way they listed my diamond (refused to put AGS 000, etc) and they also kept going back and forth on how the diamond would be replaced. I ended up getting a quote through jewelers mutual and it was much cheaper than USAA! We moved everything but my husband's rolex watches over there. In the case of the rolex - he ended up losing his and they replaced it within a few days through one of their distributors, so that worked out well.

Thanks for your reply. I am having similar concerns as you; looking for reassurance that I will be able to replace what I actually have in the event of a loss. That's the point of insurance.

Unfortunately for me, JM is quite a bit more than USAA.

 

[denverappraiser]

Re: Why is USAA refusing to insure rings for appraisal value

Dave is certainly well qualified, but I haven't a clue if USAA knows this. Presumably his qualifications are included in the report but not everyone reads well. From your description of the response, that doesn't sound like the problem.

That's a very interesting response from them. It reads like it's coming from the legal department but it's hard to imagine they would make a critical error like that 25% one from that source. That leads back to the agent, and it's strangely specific language from them.

Replacement on a genuine August Vintage must be with a comparable August Vintage or it's not of like kind, and defining quality is what the various grading specs are about. They're welcome to get one wherever they can but, given that it's a house brand by GOG, it's extremely likely that they're going to have to buy it there, and they're going to have to pay whatever GOG is charging at the time of the loss. They're also welcome to try and beat them up on price if they want but that doesn't involve either you or the appraiser. A similar thing happens with the designer. Most designers have an assortment of outlets and the insurer is welcome to play them against each other to get you one as cheaply as they can but, in the end, a genuine Tacori (for example) needs to be replaced with another genuine Tacori. A knockoff is not of 'like kind'. I presume Dave's value conclusion is appropriate for this purpose but that's for him to support. Have you asked him?

When I talk about problem items, I"m thinking of your 19th century Tiffany&Co. tiara. There's NO WAY they're going to replace that with anything that's even close, even if Tiffany cooperates, which makes it effectively a cash policy. Not all companies will agree to do this, in fact most won't. Actual price paid is an entirely sensible way to insure this sort of thing, rather like the way they insure fine art. A branded diamond mounted in a branded ring from two sources that are both still in business is actually a pretty easy replacement. The only thing to fight about is the price. I'm really curious how this plays out. I've sent appraisals on new purchases to USAA as recently as last week. Never have they been a problem that I"m aware of.

 

[oldminer]

Re: Why is USAA refusing to insure rings for appraisal value

I think this all has been straightened out now. USAA has become quite difficult compared to many other companies when it comes to certain parts of documentation. However, in their defense, USAA does their own replacements and over-insuring is not a necessary strategy. I use USAA for my cars, liability and home, so my own policy premiums support their efforts to tighten the standards and charge folks a fair fee for coverage even if it is a bit inconvenient sometimes to get to the proper point of actually getting the needed coverage.

 

[diamondseeker2006]

Re: Why is USAA refusing to insure rings for appraisal value

I always insure for purchase price as that is how much it would cost me to replace, especially when there is inflation protection built in. If they allow an additional 25% over what you paid to replace a like item, I am not sure why you'd want to pay higher premiums? There is no need.

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

Thank you for all the helpful replies.

 

[doberman]

Re: Why is USAA refusing to insure rings for appraisal value

I agree with diamondseeker in that I insure for the cost of the item or cost to replace it. Otherwise the premiums are ridiculous when you add them all up. I notice that some people seem happy when insure their item for much more than it cost them based on an inflated appraisal. I don't get it, but to each his own.

 

[apacherose]

Re: Why is USAA refusing to insure rings for appraisal value

I agree with diamondseeker in that I insure for the cost of the item or cost to replace it. Otherwise the premiums are ridiculous when you add them all up. I notice that some people seem happy when insure their item for much more than it cost them based on an inflated appraisal. I don't get it, but to each his own.

Just to be clear my concerns revolve around whether I will be able to replace my jewelry in the event of a loss.

Furthermore I got an evaluation by an independent appraiser, who deliberately tries not to inflate values.

The difference in premium to be fully covered for the appraisal replacement value vs. the retail value, is, in my case, well worth the peace of mind. That, as you say, is a personal decision. And, as with all insurance purposes, you buy and pay for the peace of mind you are individually comfortable with, for your budget and risk tolerance.

My purpose in starting the thread was to ascertain whether others who use USAA have dealt with this issue and insight into the process, not a general inquiry on what level of coverage individuals maintain on their valuables, or cars or life etc.

As Oldminer stated above, my issues with coverage through USAA have been resolved.

 

[pinkjewel]

Re: Why is USAA refusing to insure rings for appraisal value

I agree with diamondseeker in that I insure for the cost of the item or cost to replace it. Otherwise the premiums are ridiculous when you add them all up. I notice that some people seem happy when insure their item for much more than it cost them based on an inflated appraisal. I don't get it, but to each his own.

Just to be clear my concerns revolve around whether I will be able to replace my jewelry in the event of a loss.

Furthermore I got an evaluation by an independent appraiser, who deliberately tries not to inflate values.

The difference in premium to be fully covered for the appraisal replacement value vs. the retail value, is, in my case, well worth the peace of mind. That, as you say, is a personal decision. And, as with all insurance purposes, you buy and pay for the peace of mind you are individually comfortable with, for your budget and risk tolerance.

My purpose in starting the thread was to ascertain whether others who use USAA have dealt with this issue and insight into the process, not a general inquiry on what level of coverage individuals maintain on their valuables, or cars or life etc.

As Oldminer stated above, my issues with coverage through USAA have been resolved.

I know this is an old thread, however, I wondered how it turned out. I took my jewelry away from USAA last year. I had never made a claim before, but when I did- they were very uncooperative. Insisted on replacing it themselves rather than letting me choose the diamond, even with the jewelry store my husband had originally purchased the diamond from getting involved. Since we are all rather picky here about our gems this did not sit well with me. I could only imagine how that would play out if it had been one of my pink diamonds rather than a basic one!

 

[therainbowradish]

Re: Why is USAA refusing to insure rings for appraisal value

I actually just went through a total loss claim with USAA and boy I'll tell you they had me sweating. They insisted that they would find me a new old European diamond with their in house diamond replacement department. I was very leery of their ability to replace my diamond with a comparable stone. The representative told me that if they could not find a diamond of like kind they would cash me out at their wholesale cost in other words what it would cost them to buy the same stone. That would be of no use to me because I am NOT in the trade and can't buy wholesale . He then gave me a lecture on how appraisals are inflated and that throughout the process claim they would be readjusted my appraisal to reflect a more accurate value. How they would determine that, I have no idea. They took one week to find the ugliest old European I have ever seen. I turned it down and kindly requested that they work with a vendor of my choosing who specialized in antique cuts. I provided them with a very extensive list of comparable stones any of which I would be happy to accept. A few days went by and I received a call that they had decided to cash me out at full appraisal value. I was shocked. I literally dropped the phone when I heard the message. After all the stress of thinking that I would not be getting a stone of the same caliber or that they would cash me out at a much lower rate which would not allow me to get a stone of equal or like kind they really surprised me. I don't know why they put me through that song and dance when they ended up doing exactly what they said they would from the beginning. At the time of taking out the policy they assured me they would replace at the appraisal value, and guess what? They did! They also allowed me to insure my new ring with them at appraisal value without an issue.

 

[pinkjewel]

Re: Why is USAA refusing to insure rings for appraisal value

I actually just went through a total loss claim with USAA and boy I'll tell you they had me sweating. They insisted that they would find me a new old European diamond with their in house diamond replacement department. I was very leery of their ability to replace my diamond with a comparable stone. The representative told me that if they could not find a diamond of like kind they would cash me out at their wholesale cost in other words what it would cost them to buy the same stone. That would be of no use to me because I am NOT in the trade and can't buy wholesale . He then gave me a lecture on how appraisals are inflated and that throughout the process claim they would be readjusted my appraisal to reflect a more accurate value. How they would determine that, I have no idea. They took one week to find the ugliest old European I have ever seen. I turned it down and kindly requested that they work with a vendor of my choosing who specialized in antique cuts. I provided them with a very extensive list of comparable stones any of which I would be happy to accept. A few days went by and I received a call that they had decided to cash me out at full appraisal value. I was shocked. I literally dropped the phone when I heard the message. After all the stress of thinking that I would not be getting a stone of the same caliber or that they would cash me out at a much lower rate which would not allow me to get a stone of equal or like kind they really surprised me. I don't know why they put me through that song and dance when they ended up doing exactly what they said they would from the beginning. At the time of taking out the policy they assured me they would replace at the appraisal value, and guess what? They did! They also allowed me to insure my new ring with them at appraisal value without an issue.

glad to hear that your claim turned out ok in the end!! It's just a shame they made it such an unpleasant experience to get there instead of just paying it to begin with.

 

[DAF]

Re: Why is USAA refusing to insure rings for appraisal value

I always insure for purchase price as that is how much it would cost me to replace, especially when there is inflation protection built in. If they allow an additional 25% over what you paid to replace a like item, I am not sure why you'd want to pay higher premiums? There is no need.

+1
I've insured my ER and WB through Jeweler's Mutual (JM) for years for its purchase price. The appraisal from the vendor was more than double what the actual cost was. I also had another independent jeweler appraise it and they were certain that their cost to replace it was 89% more than the actual cost. We just sent in the sales receipt and they insured it with no questions asked. This year, they adjusted for replacement cost increase, and my policy went up a whole $8.00 for the ER and WB.

Jeweler's Mutual allows me to work with my jeweler and pick my replacement diamond in case of damage or loss. I don't think I would be comfortable allowing someone at an insurance company to decide what is a comparable diamond to mine. As other PSers know, you have to see a diamond in person to appreciate it, you can't always go off of a stat sheet.

 

[kenny]

Re: Why is USAA refusing to insure rings for appraisal value

I don't blame an insurer for refusing to honor so-called appraisals.
Diamond appraisals are BS.
Even the ones that came with the diamonds I've bought stated the diamond is worth about 40% more than I just paid.

HELLO!

You pay $10,000.
Appraisal states $14,000.
You insure it for $14,000.
There is a loss.
Since you can replace it for $10,000 why should the insurance company pay you $14,000?

 

[kb1gra]

Re: Why is USAA refusing to insure rings for appraisal value

I don't blame an insurer for refusing to honor so-called appraisals.
Diamond appraisals are BS.
Even the ones that came with the diamonds I've bought stated the diamond is worth about 40% more than I just paid.

HELLO!

You pay $10,000.
Appraisal states $14,000.
You insure it for $14,000.
There is a loss.
Since you can replace it for $10,000 why should the insurance company pay you $14,000?

The original intention of the inflated appraisal (and someone can correct me if I'm wrong) was to protect you against FUTURE market increases as the trend previously was not to get frequent reappraisals. In the time when precious metals could double in a year, this made sense.

It makes much less sense in a transparent market where diamond and precious metal prices and purchases are readily available on the internet. However, I personally prefer not to pay $200 per appraisal per piece every year just to make sure I'm exactly insured, so I'll take an inflated appraisal as long as it's not double the replacement cost.

 

[ChristineRose]

Re: Why is USAA refusing to insure rings for appraisal value

Easy. You've been paying for a $14,000 replacement. They signed a policy that said they owe you $14,000. And if the company really can buy you a comparable stone for $10,000, then they get to keep the payments for the extra $4,000 and there's no complaints.

The problem comes when the insurance companies try to replace $14,000 stones with $10,000 stones, and try to blame it on inflated appraisals. They could probably do something about the problem if they really wanted to, but they seem to be happy with the way things are.