Insuring Your Jewelry
The sole basis for your insurance coverage and any claim you file is the appraisal. The jewelry is insured, not the dollar value. That means ONLY the description and specific quality as spelled out in your appraisal is considered in a claim; NOT the dollar value. In a claim, you won’t be paid the appraised value, but your premium will be based on it.
So, isn’t a great appraisal worth paying for?
• Know Your Coverage: You should thoroughly understand the limits of your policy and what coverage options are available to you; always ask see the specific language in your policy that addresses your concerns. You can use these questions as a starting point.
• Questions for Your Insurance Agent:
1. Is a current appraisal the best way to assure full coverage? Define “current”.
2. Should I update my appraisal regularly?
3. If the appraiser’s an expert, such as an AGS Certified Gemologist Appraiser, will my claim & replacement value be more readily accepted?
4. If there’s a loss, do I have the option of a cash payout of the full appraised value?
5. If you pay less than the appraised value, how is the amount you pay determined?
6. Will you explain an “agreed value” policy? How does the premium differ?
7. What’s the difference between scheduled and unscheduled coverage?
8. Please explain “replacement value” and “actual cash value”; which is my policy?
9. Is my coverage “all risk” or are there any specific exclusions such as mysterious disappearance or negligence?
10. How is damage or partial loss handled?
11. Do I get to choose whether something is repaired or replaced and by whom?
12. What is the “sets and pairs” clause? Will an additional amount be paid for matching a missing part of a set or pair even if it isn’t specified in the appraisal?
13. Is my jewelry covered in someone else’s possession or if I’m out of the country?
14. May I go to whomever I choose for replacement or do you decide?
15. If I must use the company’s source, are they local and if so, who is it?
16. If replacement is through the insurance company’s source, may I verify adequate replacement by an appraiser of my choice? Who pays for that appraisal?
17. If the value of my jewelry increases, is a settlement limited by the appraised value? Does an “inflation guard” apply?
18. Is depreciation ever imposed? If so, to which items & how is it computed?
19. How are irreplaceable or “antique” items handled? How will I be compensated?
20. What kinds of property or damage aren’t covered? For instance, is damage to a watch crystal covered?
21. Is loss of the watch due to water damage caused by a broken crystal covered?
22. Will specific precautions lower my premium, such as a security system?
23. What proof is needed to file a claim?
24. Will a claim affect my continued coverage or my premium rate?
25. What is the rate per $1000 and do all insurers charge the same rate?