Jewelry endorsement rider.

[LindaH]

help!!!!! I have a texas homeowners insurance policy. I alwo pay an additional scheduled personal property premium to cover my wedding ring. I had the ring appraised per request of my insurance agent and pay premium on this amount. My endorsement states Loss Settlement: Covered property losses are settled as follows" we will pay the amount shown for each scheduled article which is agreed to be the value of the article".
My ring consists of a band, center diamond and two side diamond baquettes. The center diamond has broken. I feel I should be paid the appraised amount for the whole ring and I will give them the ring. They are only willing to pay for a repalcement of the diamond. I have gone to 3 different appraisal firms and they are all quoting different amounts. My insurance agent said if the diamond had been lost or stolen they would pay for the entire amount. Since my policy does not state payment will be different depending on if it is lost or damaged I feel I am entiled to the full amount that I have been paying on all these years. The endorsement states " we insure against all risks of loss or damage to property described in this endorsement.
any advice would be greatly appreciated. I am ready to file a complaint with the insurance board.

 

[I AM ALWAYS LIABLE]

My response:

I'm sorry, I must be missing something in your post, but . . .

If all it takes is for your diamond to be replaced, and the rest of the band is not damaged, then what is the problem ? That is, if they replace the diamond, and the entire ring looks like it did prior to the diamond break, then where is your claim for anything more?

IAAL

 

[LindaH]

My issue is I took the ring to my jeweler who quoted me an estimate. the insurance company made me go to their jeweler who quoted a different estimate. on my own I went to a third jeweler who quoted again a different estimate. Diamonds are very subjective when you compare quality and color. so which jeweler is the most objective? There is no way to determine this. What may appear to be a S1 in quality to one jeweler may appear as an I to another. big difference in price!

 

[I AM ALWAYS LIABLE]

My response:

You're entitled to "like kind and quality" under your policy. The insurance company jeweler may have a "conflict of interest" in this matter; e.g., it may be in the jeweler's own interests to recommend a diamond that "looks" good as a replacement, but is very cheap for the insurance company to buy - - thus, ensuring this jeweler's future work with the insurance company.

However, on the other side of this coin, your jewelers are looking at selling you a very high-priced diamond of "like kind and quality" because you are the customer, and hoping the insurance company will buy their diamond.

So, how do you determine who is correct, and make a determination of this subjective, and objective, dilemma?

Your insurance policy has a Term and Condition entitled "Arbitration", with a section that begins something like this - - "When YOU and WE cannot agree . . .

So, since you cannot agree on "like kind and quality", it may be time to demand an arbitration of the dispute. You will choose an arbitrator, and your insurance company will choose an arbitrator, and those two will choose a third arbitrator.

Through various wranglings, and expert assistance, a final determination will be made that ALL parties will have to accept as final and binding.

Good luck to you.

IAAL

 

[LindaH]

So what about the endorsement contract. Why doesn't the insurance provider have to follow the terms of the endorsement?
the endorsement itself states it will pay the appraised value of the scheduled item if there is loss. It doesn't address "part of a loss". When it addresses other scheduled items for instance stamp collections it specifically states how it will pay for a partial or total loss. I think this is misrepresentating to the consumer!
They're so specific on everything else in the homeowners policy, I feel like I'm being taken.

 

[vrzirn]

Diamond ratings are not all that subjective. Have the appraisal of damaged stone and of new stone done by independant certified gemological institute appraiser.He will not be selling new stone so there is nothing in it for him except his fee.You are nit-picking over the phrasing of your policy language. If they fix it "good as new", that is all you should get.

 

[Donna32669]

Jewelry Rider

This is a common situation when a stone is lost...however, as stated above you are entitled to like kind and quality. One problem results because the insurer can replace the stone at a subtantial savings because of their sources. You usually receive one of better quality (CCC), and that is easy to verify since you should have had an appraisal on the original stone. The policy amount that is on your schedule is used because there must be a way to (1) calculate a premium for the exposure and (2) to "cap" the loss. Finally, I have had many items scheduled pesonally and
have undewritten countless jewelery "floaters", many times the appraisals received from the jewelers (especially the chain store) are inflated. I agree, if you recieve a stone and are put back to the way you were, and you can verify it with an independent appraiser if you are in doubt, what else would you want? I don't think they will cut a check for a more than they can replace it. Just be thankful you were smart enought to insure the item for this type of "loss", as mysterious dissappearance is not covered by the regular HO policy!

 

[astyer]

First of all, you were smart to have it scheduled. However, you are not entitled to have the entire ring replaced. Only the broked diamond should be replaced.

 

[You Are Guilty]

First of all, you were smart to have it scheduled. However, you are not entitled to have the entire ring replaced. Only the broked diamond should be replaced.

And you were stupid for reviving a 4 year old post.

 

[seniorjudge]

And you were stupid for reviving a 4 year old post.

Like kind and quality.