Insurance refuses to cover the appraised cost of an insured lost ring

[believer420]

I bought an engagement ring last April for about $3.7k. It was lost, but insured and the independent appraisal for it was $4k. Insurance (which is supposed to cover the full cost of the ring) is saying it’s only worth $2k (about 6months after the appraisal). What’s the thoughts on the worth of this ring?

One sapphire and Diamond ring made in 14k white gold containing:

One(1) round faceted blue sapphire measuring approximately 6.00-6.20 X 3.8 millimeters and weigh approximately 1.21 carats (loose weight). This sapphire is lightly invited and is extremely dark blue in color with no brilliance. This stone does not show any indications of being treated. The stone is prong set.

Sixteen (16) round brilliant cut diamonds with approximate total weight of 0.20 carats (by formula). These diamonds have a clarity grade of SI1 and color G/H according to G.I.A. Grading standards. These diamonds are cut to class II proportions and are prong set, halo style.

The total weight of the ring is 2.30 dwt.

Am I getting screwed by the insurance company or jeweler and appraiser?

To add: the insurance asked for the appraisal last April, accepted it, and we’ve been paying a premium for the coverage of the ring.

 

[matt999]

@believer420 This depends on how it was insured. Read the fine print of your policy. Look for settlement terms. Specifically looking for ACV (Actual Cash Value) or Replacement Cost. ACV takes depreciation into account. Did you provide the insurance company a copy of this independent appraisal at the time of the policy purchase?

Also if you receive the claim payout and then end up finding the ring, you must call the company and ask how to send it to them as they own it. Otherwise you're committing insurance fraud!

Typically any jewelery that is insured as a "scheduled" item has the appraisal on file so that there is zero negotiation on the payout.

 

[grateful4466]

@matt999 This right here. Always ask you agent what your policy gets you, especially with HO policies. Looks like in this case you needed and “agreed upon” endorsement for that scheduled item. Basically you tel them that if I lose it they agree to pay ‘X’. It’s a higher premium but it gets you what you want.

 

[resjudicata]

@believer420 How was it insured. As scheduled jewelry on your homeowners or a jewelers mutual policy?

Most basic homeowners policies limit theft/disappearance of jewelry to around 1500-2500

e. $1,500 for loss by theft of jewelry, watches,
furs, precious and semiprecious stones

 

[aaronparsons]

@believer420 Diamond jewelry depreciates massively as soon as you buy it. If you paid 3.7k for it there is absolutely no way it is worth 4k. 2k sounds in the right range, but I am by no means a jewelry expert. You need to read your policy language on what value is covered. I would always recommend an agrees value policy for jewelry. It sounds like you may have purchased an actual cash value policy.

 

[dani]

@believer420 What company is this?

 

[believer420]

@dani Allstate. I’m far from an insurance expert (my fiancé generally handles it, so I’ll be trying to relay info from this thread to her and then back).

 

[dani]

@believer420 Garbage insurance for sure!

 

[johnredeemed103]

@dani Lol…what

 

[dani]

@believer420 Don’t let them screw you, you scheduled it on the policy. They should pay the value on the policy.

 

[believer420]

@dani It’s been in claims for two months.

 

[digitalinchrist]

@believer420 Ask them to replace it. Same for same.

 

[resjudicata]

@digitalinchrist Depends on if they actually paid for that kind of policy (replacement cost).

If it was insured for actual cash value (ACV), the insurance company gets to knock off depreciation from the payout.

Or it may have been a scheduled endorsement on their homeowners policy with a total payout limit, regardless of value.

They need to read their policy carefully first to see what kind of policy they purchased before they attempt to start negotiations. They may be at the limit of what they can get.

Does it suck? Absolutely.. but that's what insurance agents and asking questions before you need to make a claim are for (example- Is this replacement coverage for the ring?)

 

[johnredeemed103]

@believer420 You’re talking about what you paid for and what it appraised for…insurance company is talking about how much it would cost to replace it. Maybe you spent $4,000 at the mall or your local jeweler but if you can replace it for $2,000 by going to the right supplier then that is what your insurance owes you. Most likely they have 100% accurate replacement cost and could even do a direct replacement for you.

From the description of the ring and stones you probably did overpay…which is fine, no crime, but you are not owed the money you spent…you are owed a new ring.

 

[shadow2222]

@believer420 The business isn’t lying, you are