READ YOUR POLICY, PLEASE.

About insurance policies and your jewelry.

HAVE YOU READ YOUR POLICY? The vast majority of jewelry appraisals are written for insurance-related matters. Yet, most purchasers of insurance and unfortunately some writing appraisals know little or nothing of how insurance actually works. Understanding that insurance should not be viewed as a way to hit the jackpot in the event of a loss is a good starting point. Over-insuring property and collecting a claim for more than your actual risk is fraudulent. And financially not in your interest as a majority of insurance contracts now provide for the replacement of scheduled jewelry in case of loss, and repair in the case of damage. 

The amount of settlement for an insurance claim will depend on the type of insurance you have and the wording of your contract. Insurance claims are complicated, and are settled according to the terms of your contract, and not according to what you might expect. Most companies provide replacement coverage of scheduled jewelry and will replace your jewelry or make a cash settlement based on their cost to replace, not your insured value. This is what makes an insurance policy different from hitting a jackpot. There is no problem with this type of insurance as long as you have a detailed appraisal document. The consumer needs to understand that an appraisal does not change the value of the property. Property is what it is, and the best insurance appraisal with a realistic assessment of the appropriate amount of insurance coverage needed. After decades in the jewelry industry, I am baffled every time I see a "FEEL GOOD"  appraisal for an inflated "value". 

Please consult your insurance agent for clarification as to the details of your insurance contract. There are many types of policies, often custom-tailored to the needs of the insured. Your agent will explain the differences between scheduled and unscheduled items. Also what replacement and agreed value insurance policies are. The best guide for knowing how your claim will be settled is to read the fine print in your policy and ask your agent questions. Be sure you have a clear understanding of the terms of your insurance contract, and please read the fine print!