Lost insured ring... what if I don't want an exact replacement?

[PeaceLily20]

I've had a hard time finding the answer to this question, so I'm hoping someone can help me! I tragically lost my ring swimming in a lake yesterday, I forgot to take it off and I've lost some weight. It is insured (with JM), so that's a big relief. However, this ring is 12 years old and my tastes and our financial circumstances have changed since my husband proposed. Is JM going to require me to get an exact replacement? Or could I ask them to pay my jeweler for the cost of the replacement and allow me to use my own money to make up the difference and turn that 1ct round into a 2ct cushion?

 

[motownmama]

What’s your policy say?
Mine with Chubb cuts you a check for whatever the scheduled amount is.
Do you have an insurance agent?

 

[Yimmers]

Hi there PeaceLily20, sorry to hear about the lost ring.

Short answer, no. I lost my wedding set some years ago. JM had me file an official lost report with the police, have a second person verify that my ring was missing (under penalty of perjury), and then I chose a vendor that I wanted to work with. The vendor submitted an estimate for a COR, and after it was approved, they received the funds. Then I used it to get my current (and bigger) diamonds with some of my own money thrown in as well. Unless there has been a change to their policy, I believe this is what will happen.

 

[MissGotRocks]

Hi there PeaceLily20, sorry to hear about the lost ring.

Short answer, no. I lost my wedding set some years ago. JM had me file an official lost report with the police, have a second person verify that my ring was missing (under penalty of perjury), and then I chose a vendor that I wanted to work with. The vendor submitted an estimate for a COR, and after it was approved, they received the funds. Then I used it to get my current (and bigger) diamonds with some of my own money thrown in as well. Unless there has been a change to their policy, I believe this is what will happen.

I would think this is what would happen too. They will give you replacement cost and you can add all the money you want. Bigger diamond, bigger insurance premium so why wouldn't they? Good luck and keep us posted!

 

[Smith3]

Interesting, good to know. I always just thought they give you the money so you could buy what you want. Both my rings are antique so I don’t know how that would work if something were to happen.

 

[barbie86]

I would think this is what would happen too. They will give you replacement cost and you can add all the money you want. Bigger diamond, bigger insurance premium so why wouldn't they? Good luck and keep us posted!

+2. Can't comment on JM specifically but with my policy it is insured at x amount; in the case of loss or theft I would need to approach a jeweller for a quote and would then get that amount/the amount I have it insured for. I could then choose to spend extra if I wanted.

 

[Niel]

Read your policy jacket/endorsements. It details how you will be paid out in the event of a loss.

 

[denverappraiser]

JM is a pretty agreeable company. The real trick has to do with figuring out how much they’ll pay. It’s NOT usually the bottom line value on the policy.

After they approve the claim, they’ll send you to a jeweler along with the description, photos, etc. from the appraisal that you submitted when you bound the policy. The jeweler will bid directly to them with a price to replace with ‘like kind and quality’. This is the tricky part. The jeweler will bid it on a cost-plus basis. JM is more agreeable than most on what they will allow in that ‘plus’ category, but the approach is pretty typical. That will generate a value for the claim. That, minus your deductible if any, is what they’ll pay unless it exceeds the face value of the policy. In those cases, they’ll cash out for the face value. They normally will pay directly to the jeweler and that ends the claim for them. You can buy from the jeweler whatever you want (or nothing at all).

The key here that befuddles people is that the value of the claim is usually different than the maximum limit found on the policy or the value conclusion found on the appraisal. Depending on who did your appraisal and how, it can differ by quite a bit. Your appraiser should be able to explain it to you.

 

[Lookinagain]

+2. Can't comment on JM specifically but with my policy it is insured at x amount; in the case of loss or theft I would need to approach a jeweller for a quote and would then get that amount/the amount I have it insured for. I could then choose to spend extra if I wanted.

Mine works the same way and it’s through my home owners policy.

 

[Polabowla]

JM is a pretty agreeable company. The real trick has to do with figuring out how much they’ll pay. It’s NOT usually the bottom line value on the policy.

After they approve the claim, they’ll send you to a jeweler along with the description, photos, etc. from the appraisal that you submitted when you bound the policy. The jeweler will bid directly to them with a price to replace with ‘like kind and quality’. This is the tricky part. The jeweler will bid it on a cost-plus basis. JM is more agreeable than most on what they will allow in that ‘plus’ category, but the approach is pretty typical. That will generate a value for the claim. That, minus your deductible if any, is what they’ll pay unless it exceeds the face value of the policy. In those cases, they’ll cash out for the face value. They normally will pay directly to the jeweler and that ends the claim for them. You can buy from the jeweler whatever you want (or nothing at all).

The key here that befuddles people is that the value of the claim is usually different than the maximum limit found on the policy or the value conclusion found on the appraisal. Depending on who did your appraisal and how, it can differ by quite a bit. Your appraiser should be able to explain it to you.

Can you explain the last paragraph? Why does the amount differ?

 

[Bron357]

Can you explain the last paragraph? Why does the amount differ?

You might have an appraisal for $10,000 saying 1 carat H colour Si 1 diamond in a 6 prong 18ct white gold setting weighing 7 grams.
Your sum insured and your premiums have been on $10,000.
depending on the policy in the event of loss you might be eligible for either sum insured ie $10,000 or replacement with like according to the appraisal. Depends on the policy wording as to how a claim will be settled. Sometimes it’s the insurers choice, Others it’s the client.
If the policy is “like with like” if the Jeweller can replace the lost diamond and setting for say $9,000, then $9,000 is the value you’ll get. However if diamonds have gone up in price or your sum insured was too low, and a replacement ring with a like diamond is $12,000, they’ll give you sum insured ie $10,000 and not a ring.
check your policy wording.

 

[Polabowla]

Thank you for explaining it to me @Bron357 !

 

[oldminer]

The end result should be that you will not take a loss financially. The loss remains an emotional one, but since you want a different sort of ring now, it will be a somewhat less negative event than it might have been. If you are prepared to pay for the additional value of the newly selected ring, you will not have any real financial loss from the insured ring which went for a swim.

 

[Texas Leaguer]

In our many years of experience with Jewelers Mutual, we can attest to what @denverappraiser said about the "agreeable" nature of their service.

One of the benefits of working with JM (as opposed to say a homeowners provider), is that they are a specialist in jewelry. So they understand that customers sometimes want to replace with different items, and they have lots of experience in working through those situations.

If you contact them and explain exactly what your goals are on the replacement, I think you will find that they are very helpful.

 

[denverappraiser]

The usual way an insurance claim is processed is that the carrier will take a copy of the original appraisal, the one you submitted when the policy was bound, extract the description and photograph sections, and send them to their preferred providers to get a bid on replacement. If that’s less than the current policy limit and the other bids, that becomes the value of the claim that they’ll be working with. The bidder never sees either the policy or the appraisal.

The insurers are, of course, giant customers. They have considerable buying power and it results in them both knowing where and how to shop (sort of), and in them getting reasonably attractive prices. Some go so far as to own jewelry stores. Some have contracts with national or local providers. JM will let you go wherever you want although they have limits on the jewelers over how much they can charge. It’s not a total free-for-all just because they call themselves jewelers.