Jewelers Mutual Explanation

[diamondseeker2006]

I didn't find Chubb much more than insuring on my old homeowners policy. Just to give you an idea, I think I have just a ring and studs covered at $24,000 with a premium about $285 a year. The fact that they allowed me to insure for actual sales amount will save me money over the long run rather than overpaying premiums because of an inflated appraisal. I understood at the time was that there was a minimum amount to get a Chubb policy (not sure but $10,000 was mentioned at the time). They have sent letters a couple of times giving me the option to increase coverage due to inflation without an additional appraisal, too. It is really the best insurance if you can find someone who'll do the standalone policy.

 

[ybainz]

Sorry to revive an old thread but I recently bought a ring and had a question about getting insurance on it. The center stone is a 3 carat round J, SI2. I wanted to ask if the insurance looks at the clarity/color when replacing the diamond? I ask this because even thought my stone is a SI2, it is eye clean and you cannot see any inclusions even under 10x. How would some of these jewelry insurance companies handle this?

 

[WinkHPD]

So let me get this straight, I buy a engagment ring that would have cost me roughly $16k, but I only paid $13k. It is appraised at $21k.

If I take out a $16k policy, lose the ring in 2 years and replacement costs has gone up to $20k due increased prices, JM will only reimburse me $16k of my policy, and I'm stuck with not only the $1,000 deductible, but also $4k of additional exposure due to increased prices.

But if I ensure for the appraisal price of $21k, and at the time of the loss the replacement costs is still $16k, then JM will only reimburse the lower replacement costs and I'm stuck in a situation where I was paying higher insurance premiums than I should have?

JM is a replacement policy, not a cash out policy. If you have a good appraisal then you will get a diamond of "like kind" in a mounting of "like kind". If you have a branded diamond or a branded mounting then you will get a branded diamond or a branded mounting (or both) of the same value. With JM you may use the jeweler of your choice and once you have signed off on the replacement, the jeweler will submit copies of his invoices from the diamond vendor and the mounting vendor and JM will pay them on a cost plus basis. The plus is dependent on the cost. The plus will be higher on less expensive items and less on higher cost items.

Thus, if the OP is correct in thinking that he bought for no mark up from his family jeweler, he should be wanting an appraisal for what he would normally have paid, as he or she will not likely be able to replace it for that exact price. There is no reason to appraise it and pay for a premium that is sky high however, as the cost paid to the jeweler will only be cost plus, no matter how high the original appraisal.

If you are doing a cash out policy and try to buy a policy for $25,000 on an item that should sell for $16,000 and suffer a loss,if your jewelry adjuster is doing his job he is going to tell you that he can buy and replace your item for $16,000 and that is all that he will write the check for.

I have done replacements and cash out values for both types of policies. Insurance is to make you whole in the event of loss, not make you rich.

Wink

 

[WinkHPD]

So when JM does replace a ring, how does it work? Can the insured work with any jeweler that they choose, or just their original jeweler or one that JM chooses?

They just worked it out with my jeweler. I think as long as your jeweler is willing to work with them you're fine.

My ring was from ERD originally and it was no problem to go back to him for the replacement.

Did you still get to pick your new diamond though?

Absolutely. You can even pick one that is larger and more expensive than the one you lost if you wish. You just have to pay anything over what it would have cost JM to replace the one that you lost.

If the diamonds you are being shown are not at least equal to what you lost, go to another jeweler to work with.

Wink