Insurance claims are dealt with in widely different ways: some companies will replace a lost or stolen item in like kind, some will deduct a discount from the monetary value stated on the appraisal, many will want to negotiate a settlement for your loss, and so on.  Too often I hear, "I THOUGHT IT WAS COVERED, BUT IT WASN'T!"  so you may want to read the following:

The “retail replacement value” I list on the bottom line of your appraisal is a carefully researched and calculated sum by which your premiums can be determined.   This can change with market fluctuations.  Burmese rubies, Russian diamonds, gold; jewelry reflects the global market. However we can't re-appraise jewelry each and every day as gold, platinum and gem prices rise and fall.  We can't predict the future (though crystal balls remain popular, at least in Southern California, where I grew up).  Therefore, the most important part of an insurance appraisal is the accurate descriptions of the appraised items because insurance companies insure the jewelry items, not just their value. 

Most of us never think to ask how our coverage works.  Did the agent who sold you your homeowners’ policy mention what his company could do for your engagement ring, your Swiss watch, your diamond bracelet?  This specific type of coverage is commonly called a rider or floater.  I know great agents and find that in general they are much savvier than when I first began appraising but I still find  those who will tell you  -   in awfully scary detail - the  ins and outs of  tornado damage,  flood damage, termite damage, locust damage, liability for accidents on your property, grand theft auto and attack by renegade plumbers.  With all this to keep track of it’s no wonder:  the agent may be completely unfamiliar with the jewelry market and with their company’s actual replacement procedure.  Your agent may not know if an appraisal is needed, why it is needed, or what a usable appraisal must comprise. 

The most important part of an insurance policy is that you understand it and it is right for you.   You can start by asking about scheduled coverage.  Ask about an automatic inflation guard.  Learn their policy on appraisal updates or expiration dates.

I still give clients “Ask Your Insurance Agent,” the old list of questions to use when shopping for coverage. Included here, it is my variation on something-or-other that has been circulating Appraiserville for years. I now think this list is too complicated and  will summarize it: You must find out how your insurance will replace your item in like kind.  Ask.  Rates vary.  Requirements vary.  Question your agent carefully.   Protect yourself. 

The list:

1.  Is an appraisal for full coverage?

2.  What is the difference between scheduled coverage and

        unscheduled coverage?

3. Is there a deductible? If so, how much? Do I have the option to

        increase the deductible and thus lower my premium?         

4.  Is my policy all-risk (par loss, damage, disappearance)?

5.  Am I still covered if there is negligence or carelessness involved?

6.  Is the item covered if lost, stolen or damaged while in the possession

        of others?

7.  If there is a loss, do I have a choice of a full cash-out or will I have

        to accept less?

8.  Can I go to whomever I wish for replacement?

9.  If a loss has been replaced through the insurance company source,

        will I be allowed to verify proper replacement by an independent firm

        or accredited appraiser?

 10. Are there geographical limitations to coverage?

 11. How much will it cost per thousand for full coverage?

 13. Is depreciation ever imposed (to what and how is it computed)?

 14. Am I limited to the appraised replacement cost should there be a

        sizable increase in value?

 15. If there is damage to a piece, can I replace it or will I be

        limited to repair?

 16. What if the lost is irreplaceable, like an antique?

 17. Are there any security precautions required, if not, would there

         be a premium savings if special precautions were taken, i.e. the

         items were kept in a home safe or in a bank vault when not worn? 

18. What proof is needed to justify a claim?

19. Are there different kinds of jewelry insurance?

20. Are there any exclusions?

21. What is the pair and set clause? Will the insurance cover an additional

        amount for matching a missing item in a set if it has not been computed

        or stated?

22. What types of property are covered?

23. Will you show me the actual language in the policy which addresses each

        concern I have mentioned?

The End!